Question

• List the six general types of information management systems, and give one logistics application to each one of the types listed. Highlight the advantages and/or disadvantages.
• Which technological advances do you view as being most beneficial to logistics management?
• What critical factors of technological advances would help an organization improve the performance of the logistics system and the ability to meet customer requirements?
• Explain how these strategies relate to financial performance.

Answer 1

Q1) The six types of Information systems available are

• Management Information system (MIS)
• Decision Support system (DSS)
• Executive Support systems (ESS)
• Knowledge Management System (KMS)
• Transaction Processing System (TPS)
• Office Automation system (OAS)

Q2) Logistics application for each of these listed

• Management Information System can provide details on the safety stock levels of inventory at various location to plan distribution and vehicle requirement for transportation
• Decision Support System- can help in deciding if its beneficial to consolidate warehouse to reduce transportation costs
• Executive Support system can help in providing the top management annual transportation cost and its growth/decline in comparison to previous years
• Knowledge Management System- can help to store and share details of the existing vendors who provide logistics services to a company
• Transaction Processing system- helps in making invoices for vehicles
• Office Automation System- helps to improve the efficiency in storing and retrieving daily logistics transactions

Advantages:

Helps in easier tracking of day to day data and serves as a base for future strategic decisions

Knowledge sharing and organization policies (sales, inventory) all decided based on this data

Disadvantages:

Identifying the right system for use and added complexity if more than one of the systems exist in the organization

Q3) The technological advancement that I view beneficial to logistics is Internet of Things and Radio Frequency Identification (RFID). As these helps in better tracking of goods giving consumers better visibility and transparency in the process. There are also additional benefits with these if the goods are in cold storage as IoT helps to ensure they are maintained in optimum temperature

Q4) These technological advancements

• Reduce the error in transportation
• Provide superior tracking
• Reduces labor and additional non -productive cost
• Improves customer satisfaction and promotes customer loyalty

Q5) Technological strategies helps a firm stay ahead of competition and deliver superior service. It helps to improve the firm’s financial performance by

1. Eliminating the redundant cost
2. Improving both top and bottom line through improved customer service and efficient operations
3. Increased Customer Lifetime Value (CLV) due to more satisfied customers