How Information Technology And Systems Can Create A Sustainable Advantage For A Business

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In this short report I will be discussing ways in which information technology and information systems have been used to enhance the business of logistics. I will be looking into detail on how information technology and systems can create a sustainable advantage for a business. The three main areas I will be looking at are forecasting demand, warehouse management and distribution. What is logistics? Logistics and supply chain management is the process of making sure materials are collected, tuned into products and then distributed so that they can reach the user. Logistics is the full process of the gap between the materials being raw and collected to the delivery of the finished product in the users hands. “As such logistics includes;…show more content…
Sortation centres are perfect for online orders as they are tailored to finding particular deliveries for particular customers, for example if a customer was to take an order from ASOS this would be sorted in the warehouse and then shipped out to the desired delivery area (Gray , Karmarkar, et al 1992). A bonus of this is that it’s a quick and easy process and also results in a lot of available jobs, as both sorting are distribution take place in the same centre. Over the last few years’ warehouses have changed drastically, going from a large places that houses unused stock to an organised factory that works to meet customer demand. Also these days warehouses will be responsible for returns, this will often include repairs which will in turn be sent back to the consumer. (Gray, Karmarkar, et al 1992). When a warehouse has too much stock that is unwanted it can result in an online sale, this will then in turn be shipped out leaving room for new stock. Goods that are returned are often sold on to make sure that profit margins are kept up, companies try to get the best possible price for the value of the product. The production costs and demand patterns are easily combated now due to technological advances (Dicken, 2011) Due to advances in technology a lot of time has been saved in the manufacturing
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