Question

Explain the role of information technology in the logistic system.

Answer 1

As we know Information Technology is a key enabler in every aspect of business in today’s world. IT plays a very important role in Logistics management. Some of the roles and advantages of IT are

1. Record Keeping.
2. Cost Calculation.
3. Fast Distribution of Information.
4. Updated Information.
5. Flow of information between supply chain members.
6. Better Coordination between supply chain members.
7. Reduction in errors.
8. Better and fast customer satisfaction.
9. Reduced Inventory cost.

Information technology helps in recording inventory and gives cost reports when and where required. Managers are able to take decisions quickly which helps to gain competitive edge. Unlike earlier times when each supply chain store runs on data provided by papers which takes times are not error free, IT enables logistics is one way to get information fast and error free. IT has enables businesses to satisfy customers in a better way by providing quality services such as Quick billing by Bar codes. By the use of IT any store keeper can tell the balance of inventory with just a click on the computer. Various functions such as minimum inventory requirements, automatic inventory orders, details of Non moving Items, details of near expiry items, etc enables reduction in inventory cost. Supply chain manager’s job become easy due to availability of all stores at one place.