Information Technologies in Logistics

ICT are changing the economy and the way business is conducted in various forms. They help to attract and retain customers by customizing products and services and to obtain competitive advantage. In the sphere of logistics, ICT may be classified into three categories: identification technologies, data communications technologies, and data acquisition technologies.

As for the identification technologies, firms may appeal to barcoding and Radio Frequency Identification (RFID). They are identification technologies that facilitate logistics information collection and exchange.

Many companies of all sizes use a bar coding system to automate the inventory management process. Bar coding allows to scan an item in order to retrieve information about it. The bar code is a series of printed lines made in a special pattern to be read by a unique tool, called a bar code scanner. The final element of the bar coding system is a computer system where the information is stored and analyzed. With a bar code, capturing data is faster and more accurate, costs are lower, mistakes are minimized, and managing inventory is much easier.

Radio frequency identification represents a system that transmits the identity of an object wirelessly, using radio waves. The RFID device serves the same purpose as a bar code. But bar code systems often require a person to scan a label or a tag manually. RFID is designed to capture data on tags and transmit it to a computer system without any person involved. Besides, another significant advantage of RFID devices is that it does not need to be positioned precisely relative to the scanner.

Data communications technologies comprise such systems as electronic data interchange (EDI), the fax, the Internet, Value Added Network (VAN), electronic ordering system (EOS), logistics information system, and enterprise information portals.

The logistics information system (LIS) is usually a combination of Sales and Purchasing Information Systems, Inventory Controlling Information System, Plant Maintenance Information System, and Quality Management Information System. LIS can be used to plan the entire logistics cycle. A user can control and monitor business events in the logistics cycle to make effective decisions. Data comes in from various sub modules, and it can be analyzed in various ways. Key figures can be defined in LIS to keep track of important logistics parameters. LIS even allows users to customize the reports as per individual reporting requirements. In a word, it is a flexible reporting and analytical tool.

In terms of data acquisition technologies, firms usually deal with a large amount of goods and data. Thus, the collection and the exchange of data are critical for logistics information management and control. Good quality in data acquisition can help firms deliver customers’ goods more accurately. Data acquisition technologies in logistics are optical scanning, electronic pen notepads, voice recognition and robotics.

The successful implementation of ICT to support the logistics processes brings a number of benefits to the firms. They include quick response and access to information; better customer service; increased competitiveness; reduction on data and data re-entry; faster data collection, processing and faster communication.

However, the process of ICT adoption could be quite difficult to firms. It is associated with a large investment and firms may not have sufficient financial resources to support the high investment in hardware and software technology.