Impact of IT on Logistics and Supply Chain Management Processes

This homework assignment explores the role of information technology (IT) in logistics and supply chain management. It examines various IT solutions like Business Relationship Management, cost control software, and Enterprise Resource Planning, highlighting their benefits for transport and sourcing. The assignment provides recommendations for IT implementation, including employee training and infrastructure modifications, and discusses the advantages of fewer suppliers for data organization and information sharing. Key benefits of IT over traditional methods, such as increased fluency, accuracy, and cost reduction, are analyzed. The assignment also addresses challenges like implementation costs and employee resistance, concluding with the importance of both IT and information sharing for gaining competitive advantages in supplier management. The assignment provides a detailed analysis of the benefits, challenges, and recommendations for the implementation of information technology in logistics and supply chain management.

Running head: LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Logistics and Supply chain management
Name of the student
Name of the university
Author note

1LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Question 1
There are various types of information technologies being available in the market. Some
of the key information technologies being effective for Transport will be the Business
relationship management. This will help in maintaining the effective relationship with the
suppliers. Cost control software will also be beneficial for them in regulating the cost of sourcing
(Schwalbe 2015). Enterprise resource planning will be helpful in coordinating all the activities
from sourcing the materials to buying it. Infrastructure management software will be beneficial
for them due to the reason that it will help to promote a centralized approach in their supplier
reduction effort.
Question 2
Recommendations will include effective implementation of the information technologies
in the sourcing of raw materials. Moreover, expertise employees should be appointed in order to
run the technologies effectively. Existing employees should be given proper training to get
accustomed with the new technologies (Chidambaram and Ramachandran 2012). This is due to
the fact that, if the employees are not comfortable with the technologies, then the optimal
utilization of the information technologies cannot be leveraged. The internal infrastructure
should also be modified accordingly in order to create suitable environment for the use of the
technologies. The initiated information technologies in the organization should be updated
periodically with time. This will help to effectively meet the changing requirement in the
business state of affairs.

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Question 3
Less number of suppliers will help the organization in organizing the data more
effectively. The data mining from the information technologies will be more accurate and
effective. Moreover, the less number of the suppliers will create more penetrated relationship
with the chosen suppliers and the information will more effectively be gathered. Thus, it will
enhance the process of information sharing (Schuh et al. 2014). This is due to the reason that,
due to the presence of less number of suppliers, the information being gathered from them will
be more along with garnering more detailed information. Thus, use of the information
technology will be more mining more data from the existing suppliers.
Question 4
The key benefit of using the information technology over the traditional way of operation
is the fluency and accuracy. This is due to the reason that, working with the help of information
technology will enhance the automation in the process and initiation of the automation will
enhance the speed of the operational process. On the other hand, automation and use of software
will have less chance of errors compared to the manual forms. Thus, the overall efficiency and
effectiveness of the operational process will get enhanced. Moreover, with the help of the
enhancement of the information sharing, more diversified ideas and data will be generated
(Prajogo and Olhager 2012). This will in turn help the organization in having more options for
decision-making process. Another key advantage of using the information technology and
information sharing will be the less cost involved for the organization. This is due to the reason
that initiation of information technology will involve less manual employees and thus the cost

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being involved in managing the employees will be less. Thus, the overall cost of the organization
being involved in their operational activities will get lowered.
Question 5
Though, there are various benefits that are being gathered by the organization from the
initiation of the information technologies, however, they will also face some prominent
challenges from its implementation (Reichert and Weber 2012). One of the key challenges that
they will face is the cost involvement in implementation of the information technologies. This is
due to the fact that, initiation of information technologies will involve buying the software from
the vendors, which will cost a huge amount. In addition, the installation of the software in the
existing system along with buying the required hardware will also involve a good amount of
money. As discussed earlier, employees will also have to provide training in order to make them
accustomed with the technologies. Thus, it will also involve cost to initiate the training process.
Other challenges for the organization will include resistance from the side of the employees
(Pieterse, Caniels and Homan 2012). This is due to the reason that, several employees will feel
uncomfortable in accepting the newer technologies due to the fact that, fear will be there that
automation will take away their jobs. Thus, organization has to handle this resistance.
Question 6
Information technology and information sharing are both important for the organization.
This is due to the reason that, these two act as complimentary to one another. More initiation of
the information technology will generate more information sharing. Initiation of information
technology will help the organization in increasing the speed and efficiency of their operational
activities (Mithas et al. 2012). On the other hand, initiation of information sharing will help them

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in generating diverse information regarding their suppliers. Thus, in the case of Transport, these
both concept will be equally important in gaining more competitive advantages from the
management of their suppliers.

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Reference
Chidambaram, Vijayabanu, and Amudha Ramachandran. "A study on efficacy of employee
training: Review of literature." Business: Theory and Practice/Verslas: Teorija ir Praktika 13, no.
3 (2012): 275-282.
Mithas, Sunil, Ali R. Tafti, Indranil Bardhan, and Jie Mein Goh. "Information technology and
firm profitability: mechanisms and empirical evidence." (2012).
Pieterse, Jos H., Marjolein CJ Caniëls, and Thijs Homan. "Professional discourses and resistance
to change." Journal of Organizational Change Management 25, no. 6 (2012): 798-818.
Prajogo, Daniel, and Jan Olhager. "Supply chain integration and performance: The effects of
long-term relationships, information technology and sharing, and logistics
integration." International Journal of Production Economics 135, no. 1 (2012): 514-522.
Reichert, Manfred, and Barbara Weber. Enabling flexibility in process-aware information
systems: challenges, methods, technologies. Springer Science & Business Media, 2012.
Schuh, Christian, Michael F. Strohmer, Stephen Easton, Mike Hales, and Alenka Triplat.
"Supplier relationship management." In Supplier relationship management, pp. 7-12. Apress,
2014.
Schwalbe, Kathy. Information technology project management. Cengage Learning, 2015.