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ICT in Logistics Management - Doc

   

Added on  2020-03-16

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Running head: ICT IN LOGISTICS MANAGEMENT1ICT in Logistics ManagementName Institution

ICT IN LOGISTICS MANAGEMENT2Distribution and Logistics ManagementLogistics management is a component of the supply chain management that meets demands from consumers by ensuring efficient planning and control in the movement of goods, services, and information from the point of production to the respective destinations(Nilsson, 2006). This process is important for companies because its aids in the reduction of costs related to movement of goods and services and it ensures that customer service is greatly enhanced. The management of logistics commences with the accumulation of raw materials from the respective suppliers to the delivery of products to the customers. Logistics managers adhere to the needs of their consumers as well as the standards that have been set up for the entire industry by followinga provided process strategy, and implementing it according to the set plans.Logistics management requires that all the activities take place in time. Failure of this could lead to customer dissatisfaction. Incidentally, delayed deliveries may lead to loss of buyers. Moreover, there is need for the products to be transported properly to avoid damages. If there is poor logistics management, expenses may increase leading to losses being incurred. To resolve these problems, it is paramount that organizations implement logistic management practices that will save time, minimize costs, and ultimately increase customer satisfaction. This is possible by the use of information and communication technology in logistics management(Sai, 2016). The information and communication technologies can be applied in transportation of products, warehousing activities, the management of inventory, and in customer services. It makes the processes more efficient, saves time, and increases the customers’ levels of satisfaction. In the supply chain and logistics, different information and communication technologies has been seen to play a great role. The different technologies used are listed below.

ICT IN LOGISTICS MANAGEMENT3There is the use of Automatic Identification Technology (Auto ID). This is a technology that enables data to be entered directly into a computer without using a keyboard. It makes use ofdevices that are microprocessor controlled and logic controllers that are programmable (Majekodunmi, 2014). Technologies that employ Auto ID include; Radio Frequency Identification (RFID), voice recognition and bar coding. This technology is mainly used in tracking goods to ensure timely dispatch to the customers (Jones, & Chung, 2016). Auto ID aids in providing accuracy in matters of package locations, saving time and costs, and it provides efficient data analysis and storage (Zeibig, 2006).Radio frequency identification aids in identification of the location of the products and aids in the capturing of data. RFID systems are very important especially in hostile environmentswhere other technologies such as bar codes may be unable to survive. They communicate the data in regards to the inventory through the use of radio waves wirelessly from the objects that have been tagged to the reader.There are various components that make up the RFID system. These include; radio frequency tags (RFTs) which are made of an antenna and a chip that is a semiconductor, a single or multiple read or write devices that are referred to as readers, the readers also have an antenna, the host computer system, and an application software (Ahsan, 2011). RFIDs have been used by different suppliers from India to export their merchandise to retailers such as Walmart. These suppliers, by using the RFIDs are able to gain visibility in the movement of their products in the supply chain. This makes them more competitive. They also assist the manufacturers to manage their inventory better (Saleem, 2012).Bar coding technology is in the form of parallel lines that have different thickness, that are arranged in a sequence, containing spaces between them (Sellinger, 2012). The bars are

ICT IN LOGISTICS MANAGEMENT4information that has been presented in a coded form and is read using a scanner. The first time bar codes were used was in an American supermarket in 1952(Reynolds, n.d.). The bar code contains information about; name of the manufacturer, manufacture date, details about the product, and country code. Different industries that make use of bar codes include; electronics, retail, pharmaceutical, automobiles, and consumer goods. Bar coding therefore aids during distribution to track goods in transit to consumers (Hutton, Ding, & Wellman, 2017).Proctor and Gamble Company initially used bar coding technology to track the movement of goods as they were being shipped to retail outlets from their factories (Hunt, Puglia, and Puglia, 2007). However, they were not able to be proactive in preventing shortages intheir stores. Hence, they shifted to the use of RFID to track their products. As a result, because they were able to track even individual products, they were able to stock their stores on demand and avoid shortages. Consequently, they predicted that this move would aid in reducing their expenses by $400 million annually ("Technology Trends in Logistics and Supply Chain Management", 2017). Another company that has made use of RFID technology is Ford Motor Company. Initially, the workers in the assembly line had to call and order for parts replenishments when they ran out and then waited for long periods of time to receive them. The company, in a bid to solve this problem, put RFID tags on every parts bin. This has in turn helped because workers in the warehouses are aware when the parts are running low and they automatically deliver those parts to the workers in the assembly lines ("Technology Trends in Logistics and Supply Chain Management", 2017). This has aided in saving time and increasing the income earned by the company.

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