Logistics management Essay Example | Topics and Well Written Essays - 2500 words

Logistics management - Essay Example The rapid growth of technology has significantly changed the social, economic, and political aspects of life. The immense impact of technological advancements has made enterprises to embrace technologies in ways that enhance their competitive advantage. It has become apparent to enterprises that their survival in the knowledge-based economy greatly depends on how they improve their technological capability. In particular regard to logistics, firms have realized the essence of developing adequate methodologies so as to successfully adopt new technologies in this field, as well as integrating logistics into their corporate strategy for gaining more competitive advantage (Waters, 2007, p. 76). Since the conception of computerization, Information, Communication and Technology (ICT) have assumed supporting role for functions of the organizations. In recent years, logistics has changed with the growth and adoption in the use of ICT systems such as GIS, Warehouse Management System, Transpor t Management System, and GPS among others. The use of these ICT systems has considerably improved the way companies manage their supply chains. Major ICT systems have impacted on each of the logistics component (Sauvage, 2003, p. 237). It is against this background that this paper will seek to evaluate the key components of Logistics Management and discuss the major ICT systems in each component of logistics. In addition, the paper will provide a critical analysis of benefits and challenges in adopting and applying the technology in logistics. Components of Logistics Management It is important to point out that components of logistics management are aimed at achieving the following: satisfying customers’ needs; product selection; monitoring quality of services and goods; dealing with logistics information accordingly; inventory management; and forecasting and procurement (Grant, 2006, p. 24). Mainly, there are eight components of logistics management. i) Customer Order Proces sing This component is designed to facilitate customer satisfaction. It involves flow of the following actions: filling of the order form; making decisions on the specifications of particular product; making decision on the quality check list of the product; deciding on the delivery schedule and deciding on the delivery location of the goods. The flow of actions is highly customer-focused and aims at meeting all the requirements of the customer. This component takes into consideration several important factors. Firstly, it takes into account the cost of order processing and ensures that this type of cost is appropriate for both the customer and the logistic firm. The second factor that is considered is whether the logistic firm has the capacity to produce the required component (Langley, 2006, p. 42). The third factor that is considered under this component is the detailed list of specifications; the company should ensure that the component being processed for customer has met all t he specifications required by the customer. The component of customer order processing has adopted and used ICT systems to make its operations effective and efficient. The major ICT systems that has been adopted and used in this component are Electronic Data Interchange, Web Portal, and E-ERP. Electronic Data Interchange (EDI) is an ICT system that facilitates structured transmission of data by electronic means between organizations (Sauvage, 2003, p. 240). Logistics companies have used