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0% found this document useful (0 votes)
32 views8 pages

Order 419608 Research

This research allows in-depth, multi-faceted explorations of complex issues in their real-life settings.

Uploaded by

Jeff Terwin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Running head: INFORMATION TECHNOLOGY IN LOGISTICS 1

Information Technology in Logistics

Student’s Name

Institutional Affiliation
INFORMATION TECHNOLOGY IN LOGISTICS 2

Information Technology in Logistics

Tseng’s case study, “Information technology in supply chain management,” asserts that

the use of IT in logistics system impacts performance. It allows integration of different working

systems; through IT, a firm is capable of responding to client’s complaints and requests. It also

facilitates the increase of sales volume, since whenever a new product is in the market, an

organization can communicate promptly to its clients about it. It makes the new product

accessible, thus drawing many customers to the organization. IT enhances the distribution of

quality products and solves infrastructural problems that could hinder the marketing of the

goods. Communication of people in an organization has also become active; information

technology facilitates the transfer of ideas from one person to another within an organization.

Almost all industries as of the twenty-first century are reliant on the telephone; through these

gadgets, one is capable of calling a large number of people and relay their intended information.

The use of social media and other electronic communication modes has made it easier for firms

to communicate with masses of people. IT is essential to a firm, for it allows the flow of

communication. Proper communication enables people to understand their duties in a corporation

and attend to urgent issues on time. IT should, therefore, be employed in all sectors of a

corporation since it increases financial performance, customer satisfaction. Techniques such as

Kanban, barcode scanning, Electronic Funds transfer, and the use of Electronic Data Interchange

are applicable in the logistics system.

           Rao’s case study “Optimization of Inbound Logistics by Implementing E-Kanban System

in an Automobile Accessories Manufacturing Unit” purports that lean manufacturing is vital in

logistics systems, and it is used by the Toyota production system. Most companies face the

problem of managing their waste. This technique allows minimization of waste without affecting
INFORMATION TECHNOLOGY IN LOGISTICS 3

the productivity of goods (Rao, Michael & Sriram, 2019). Companies produce different types of

waste, which include Muri, Muda, and Mura. The waste can be presented as a result of

unevenness or when a demand for a particular commodity decreases. They are also created when

an organization tries to do many things at once. It happens where they are few people doing

many activities, and they will waste time switching from one assignment to the other. Creation of

waste arises when one does tasks that do not add value to the organization or the customer. Lean

marketing focuses on eliminating these types of wastes by improving the quality of their

products produced in an organization. Since there is too much competition in business industries,

companies should strive to provide goods that would match the needs of their clients. This type

of manufacturing ensures that an organization has adopted total quality management, thus

prioritizing on improving the quality of their products. Wastes affect the costs of goods and other

resources; waste takes so much from an organization without adding any value to the services or

products produced. This process of manufacturing saves money and time since people will be

focused on providing goods that are needed in the market within the specified times that thus

maximizing profits. Additionally, it enhances the conservation of the environment; it ensures the

production of products that are suitable for people’s health and the environment.

Rao also supports that Kanban is a system that signalizes visuals; it schedules work

processes in an organization, and it was created for Toyota automotive. It describes the products

that would be produced, the date of their production, and the number of goods to be created

(Rao, Michael & Sriram, 2019). It limits the work in progress, and this encourages team

members in an organization to complete an ongoing task before embarking on another one. The

finished work will, therefore, be marked as done, thus creating capacity for the introduction of a

new job. Limiting WIP (Work in Progress) enables team members to plan effectively on duties
INFORMATION TECHNOLOGY IN LOGISTICS 4

they are going to undertake. Also, clients will understand the nature of their work before making

demands for them. It also enhances the flow of work, and it highlights the stages and status of the

workflow. It enables one to observe whether work is flowing smoothly or it’s piling up; this is

depicted when something is held up and start holding up the capacity. It affects how work takes

place from the beginning to the end of the flow. This technique enables amends in the system,

thus enhancing the workflow and reducing the time taken to complete a particular assignment. It

promotes changes and gradual improvements at a pace which people working in a specific

organization can adopt. It also enables one to form a hypothesis, test it, and evaluate the

outcomes depicted by team members. The technique provides the information required to

determine whether the changes created in an organization are producing either positive or

negative results.

           The case study also portrays that using barcode hardware is also essential. Barcode

hardware consists of physical units, for example, barcoding printers, scanners, and other items

involved in the barcoding process like cables as well as chargers. It keeps and reads the barcoded

data, whicht is suitable for warehouses and stores (Rao, Michael & Sriram, 2019). After the

information has been barcoded, it will be displayed on the screen of the barcoding

scanner. When compared to manual entry of the product’s code and serial number, using the

barcode hardware does not consume time, and it is incredibly accurate. The effectiveness of this

machine saves time, especially in retail industries where people buy a large number of goods and

queue at the cashier point to pay. It enables a firm to serve customers quickly, thus saving time

and minimizes errors that occur during payment processes. This device allows printing and

scanning of barcodes also provide easy access to information as well as its tracking. Accessing

data of a company is essential in a situation where there is a suspicion of fraudulent activities.


INFORMATION TECHNOLOGY IN LOGISTICS 5

Besides, tracking it will provide details about how and when something happens and who

committed the act. An organization does not require a separate inventory when it has Barcode

hardware since it performs effectively the same duties as other inventories. The use of this

technology eradicates mistakes that would have been caused by having separate stockpiles. It

helps to find the products information; this includes their date of manufacture and expiration.

Further, it enables the tracking of product’s location; this makes it easier for people working on a

corporation. They would save time that would have been wasted looking for the product

manually.

          The use of Electronic Data Interchange is depicted in Ramayah's case study, “Impact of

Information Technology (IT) Tools, Partner Relationship and Supply Chain Performance." The

technique performs effectively in international freight forwarders. It sends electronic data such as

invoices, purchase orders, and bills from one company to another. It provides information

quickly and improves the services offered to customers. This technique is majorly used in large

forwarders when compared to small forwarders; therefore, there is a need to introduce it in the

Malaysian manufacturing industry. It is also useful in inventory management area since it

minimizes the effects of the bullwhip (Ramayah, Sang, Omar & Dahlan, 2008). The EDI

improves the performance of the delivery supplier, which, in turn, enhances the performance in

the supply chain. It also supports the VMI (Vendor Managed Inventory) strategy; this is a

technique of inventory planning. A supplier monitors and restocks the inventories of his

customers at proper times to sustain defined levels. The vendor is granted access to his present

client inventory and sales prediction orders information to enable him to restock his supplies

when required. The VMI links the suppliers directly to the base of manufacturing; from this

point, the EDI is applied for material generation. The implementation of these techniques in
INFORMATION TECHNOLOGY IN LOGISTICS 6

organizations has enabled them to shorten their delivery lead time. This act implies that if an

order was supposed to be delivered in two weeks, the time could be shortened to a few days. For

example, the Campbell Soup Company has reduced its ordering process time to two to three days

from one week. Through the use of VMI, the suppliers are granted access to the demands of the

purchasing’s company; this allows them to improve their schedule of ordering and production.

  Ramayah’s case study also portrays that Electronic funds transfer (EFT) allows the

transfer of money across different destinations and people without exchanging paper money

(Ramayah, Sang, Omar & Dahlan, 2008). The transfer of funds makes it easier for the client and

the firm to transact business activities rapidly. The client sends money, and the firm transfers the

goods to the customer, making business process effective. Introducing EFT to Malaysian

manufacturing industry will smoothen ways in which cash flow is coordinated in the chain of

supply. It gives one permission to transfer funds between the same banks and across different

financial institutions. The electronic transfer involves the use of ATM withdrawals, debit cards,

direct deposits, and wire transfers. Using debit cards allows the transfer of money from the

account of the buyer to that of the seller; this is convenient and flexible. This mode of

transferring money enables organizations to save the costs of printing checks all the time,

collecting and depositing them in the banks. Also transferring cash to the recipient account is fast

since the money is not moved manually. It is safe and efficient; it eradicates the need to carry

around large sums of money from one point to another, which can lead to its loss. The process

does not require many administrative procedures; this reduces the cost of labor and staff. It also

saves time since one does not have to move from one destination to another. The process

requires using a mobile phone or a laptop to transfer cash.


INFORMATION TECHNOLOGY IN LOGISTICS 7

In brief, supply chain management involves formulating strategies and plans that would

enable an organization to perform its duties effectively and produce quality goods. Lean

marketing promotes efficiency in the logistics systems; it eliminates waste by ensuring that a

corporation delivers quality goods that meet the demands of clients. It allows the proper use of

time by making sure employees in an organization are using their time to create products that

would add value to the corporation. The use of barcode hardware also makes work more

comfortable in the company, and it allows the tracking of information about a product; its

location, price, date of manufacture, and expiration. It is efficient to use this device since it

serves people quickly, unlike when entering a product’s details manually. Also, Electronic Data

Interchange sends electronic data of invoices, bills, and purchase orders. It provides better

customer services and access to quick information, and the EFT offers safe and efficient methods

to transfer cash.

 
INFORMATION TECHNOLOGY IN LOGISTICS 8

References

Ramayah, T., Sang, T., Omar, R., & Dahlan, N. (2008). Impact Of Information Technology (It)

Tools, Partner Relationship And Supply Chain Performance. Asian Academy Of

Management Journal, 13(2), 33-55.

Rao, K., Michael, L., & Sriram, K. (2019). Optimization of Inbound Logistics by Implementing

E-Kanban System in an Automobile Accessories Manufacturing Unit – A Case

Study. Quality Management, 20(170), 106-116.

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