The importance of information systems for logistics


MARIA OLIVER CASAMAJO


 

IS for Logistics are systems whose main goal is the collection of logistical information in order to make right decisions in the logistic process from its strategic side, to the operative one. IS must provide valuable information in a quick, agile and, of course, updated way. Therefore, they are important for achieving logistics efficiency and effectiveness. We could think about IS as the link between the company and its operating environment, providing to logistics professionals the necessary information in the decision making.

However, it’s easier to understand the real importance of these systems if we see what role IS can play in a real situation. We can take as an example an important stage within the supply chain, the final delivery to the consumer. More specifically, we are talking about one type of IS: Transport Management System (TMS), which are related to the improvement in transport management.

Properly coordinating suppliers, logistics and distribution are some of the biggest challenges to meet the goal of delivering orders on time and in the right place. And here is where TMS offers tools that will help companies to cope successfully with risks of delivery, from the moment products leave the warehouse, the logistics center or the store, until they reach the customer’s hands. These are some of the guidelines:

– Optimize the planning of delivery routes: In order to go faster to more places and make the service more efficient by saving fuel, avoiding points with high traffic levels, organizing previously the routes, etc.

– Lighten the fleet and streamline procedures: Have lighter vehicles for movement within the city with mobile devices that transmit information about the status of the order in real time to improve timings and quality of the service.

– Improve communication between the areas involved: Companies move in an omnichannel environment that requires complete integration of different platforms. Remote access to inventories, notification of incidents, search for alternatives or coordination between warehouse and delivery staff, are examples that manage to solve the current execution needs of organizations.

Finally, taking into account the current context, it’s clear that the competitiveness of companies no longer resides in having the best price or the best products, but in offering added value to the clients in terms of collaboration and exchange of information, flexibility and capacity to adapt to the changing environment. Therefore, IS are definitely important to achieve competitive advantages and they are a key to success of the firms, also in the future.

Sources:
http://transportetecnologico.metrotech.es/2015/04/07/que-son-los-sistemas-de-informacionlogistica-sil-su-importancia-en-el-contexto-actual/
https://logisticsandtransport.wordpress.com/2012/03/27/sil/
http://www.channelpartner.es/retail/noticias/1101572047502/bien-reparto-de-producto-ultimamilla.1.html
http://www.nexotrans.com/noticia/88212/NEXOLOG/Prodware-lanza-pautas-para-mejorar-laultima-milla.html

Leave a comment