How can Information technology boost Logistics Management?

by Klaus on December 5, 2019

in Articles

The global economy has gone through a dynamic change; the way customers purchase has also evolved. Today, customers directly interact with brands and express their honest opinions with the help of online platforms. Moreover, brands are also using the power of IT to reach out to their customers with a variety of products. Information technology has brought the consumers and the buyers, close to each other, like never. It has opened a new gateway of opportunities for all businesses, thus giving them a more realistic and competitive edge over others.

With such dynamic transformation, the supply chain industry can also benefit immensely, by shifting from the manual method to the IT-driven process. Consumers today appreciate the brands that value transparency, as they can monitor the movement of their purchases at every stage and have the freedom to alter their orders, just with a click.

So, let’s look at five ways in which technology is transmuting logistics and supply chain management.

1. Transparency in Communication

Customers value the brand that maintains transparency; thus, the critical element that helps in earning the customers’ trust is seamless communication. Thanks to the internet, today, with the help of different mediums like e-mail and WhatsApp, customers are directly served by brands. In the same way, supply chain management companies must fairly communicate with their stakeholders and keep them updated about the process of inventory at every stage. 

2. Increases overall efficiency

During the late ’80s, the different departments within the supply chain operation used the paper-based method of communication. Most of the information flowed in big files with heaps of paperwork. This method was not only slow but also full of errors. However, an IT infrastructure provides a competitive edge to supply chain businesses and helps them in achieving cycle time reduction by making the flow of information fast and accurate.

3. Facilitates Electronic Commerce

Electronic Commerce stands for all the tools that enable businesses to operate in a paperless fashion. It primarily includes e-mails, online fund transfers, electronic exchange of information, electronically protected database, and magnetic method of capturing data. With the help of Information technology, companies can automate the movement of data and information and build a secure communication channel between the suppliers and the customers.

4. Reduces Cost

With the help of contemporary computer software, the logistics managers their processes, especially with regards to shipping and returns. Today, there are multiple electronic systems, like the transport management system and inventory management system, that not only streamlines the entire supply chain process but also reduces the risk of error, ensures better quality output, and saves a considerable amount of management cost.

5. Removes Geographical Barriers

Information technology has made businesses go online. Today people can market their products globally with the help of the internet. Moreover, consumers, too, can get access to a massive range of products and purchase them from anywhere in the world. Concerning supply chain management, information technology has built greater transparency in Warehouse management. Today, you can operate multiple warehouses centrally, using the power of IT. Further, companies can source their raw materials from any, just by sitting across their computer screens. IT has made communication effective, and thus manufacturers have greater access to materials that were previously impossible to source.


Whether you are looking at streamlining processes, connecting consumers, analyzing data,

or maximizing profits, the role of IT is very crucial in bringing across a transformation in supply chain management. The consumers have accepted the online platform for their purchase; now, it’s time for companies to adopt this change and accelerate their business. The technological innovations in the supply chain will indefinitely transform the way companies buy and sell their products in the future.

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{ 2 comments… read them below or add one }

Michael jeson December 6, 2019 at 08:17

I have found here lots of interesting information for my knowledge I need. All the details you provide to us, it was very helpful and useful.


Sehaj December 6, 2019 at 11:23

Very informative vlog, Specialy the points you shared are amazing like your ideas, Thanks for sharing.



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