The Impact Of Information Technology On Logistics Management

1505 Words7 Pages
The Impact of Information Technology on Logistics Management By Khuong La Supply Chain Management 560 Fontbonne University Instructor: Andrew Clones May 9, 2013 Introduction The absolute cost of logistics will increase with growth in the economy however, the logistics costs as percent of GDP have declined since “1985 from 12.3 percent to 9.9 percent in 2006. In fact, logistics costs were closer to 20 percent of the gross domestic product (GDP) in the early to mid-1970s.” (Coyle, J.J., et. Al., 2009). There are two factors that contribute to the declining trend for logistics costs relative to the GDP (Figure 1). The first factor started in the 1980’s with the deregulation of transportation. The second factor is the…show more content…
The transport of the right goods to the right location is to “reduces the number of trips trucks make between a distribution center and a store, thereby saving fuel…” (Roberti, M., 2008). Roberti also explained that RFID combined with GPS and other technologies could help trucks to take the most fuel-efficient routes. In addition, the combinations of technologies provide real-time tracking of goods in transit as well as monitoring product quality and safety. If an internal container temperature rapidly changes or any other surprising changes, the real-time monitoring system can trigger alerts so that a correct response can be made. Transportation management system (TMS) is a set of software tools that is related to the transport of goods across the supply chain (Coyle, J.J., et. Al., 2009). TMS is used to plan, enhance, and implement transportation operation. What takes human hours or days to evaluate vast arrray of transportation options such lane/mode/carrier/service/price combinations across the supply chains; it will take TMS in a matter of minutes. Performance reporting is another useful tool in the TMS. It automatically collects extensive data of carriers, analyzes the data collections and creates performance reports based on the data it collected. “These tools provide transportation managers with timely, objective information upon which future decision can be made” (Coyle, J.J., et. Al., 2009). Information
Open Document