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INFORMATION TECHNOLOGY IN LOGISTICS 2
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
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
and attend to urgent issues on time. IT should, therefore, be employed in all sectors of a
Kanban, barcode scanning, Electronic Funds transfer, and the use of Electronic Data Interchange
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
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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
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
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
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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
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
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
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
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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
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.
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References
Ramayah, T., Sang, T., Omar, R., & Dahlan, N. (2008). Impact Of Information Technology (It)
Rao, K., Michael, L., & Sriram, K. (2019). Optimization of Inbound Logistics by Implementing