INFORMATION TECHNOLOGY AND LOGISTICAL MANAGEMENT
Table of Contents
The Business Problem
Information Technology and Business
Throughout the years, communication has been a very important part in the development of the United States. Without proper communication, the United States would most likely not be the first world potency. Perhaps one of the most important areas where the communications field has developed is through shipping of goods. Nowadays it is possible to send a package from one place to another, no matter how far it is, in the same day. Businesses have immensely opened their markets through new communication methods therefore increasing the profits they make and making the United States the World Potency that it currently is. Within these communication fields, Information Technology has played perhaps the most important role in its development. Without the use of proper information technology, most likely the communication methods that we currently use would not even exist and economic and growth power of the country would not have been in the levels in which they currently are. For the individual business however, Logistics Management plays a huge role in the supply chain operations. Without Information Technology, the supply chain must collapse at a certain point of its growth. Information Technology eases the system interactions within the supply chain therefore reducing inventory costs and effectively leading us to the accomplishment of processes like JIT or MRP. Information Technology has eventually aided in the developments of the majority of the fields. We could go into the classic example: The Internet, which has opened markets for businesses in an unimaginable way. People can buy a good in China, see its specifications, and have it shipped the same day and have it in very few days. However, even the most classical means of communications, in this case the mail, have enormously benefited from Information Technology up to the point where people can share anything anywhere in just a matter of hours. Today, all firms that need to generate a profit use or have used some sort of Information Technology in order to aid them with their tasks. From the smallest restaurant that uses a modern register to log sales and generate sales reports, to the biggest companies that have automated all of its systems in order to operate more efficiently. We will however focus our attention on how logistic companies, such as UPS or FEDEX, have increasingly used the aids of Information Technology in recent years in order to more efficiently run their operations. These huge companies use logistic coordination in order to develop systems that coordinate their operations faster and more efficiently. Millions of users take advantage of their services relying on their efficiency on mobilizing packages and letters from one place to another (no matter where in the world) and this of course requires huge coordination. These companies today now even offer real time tracking information and can display information on where a package exactly is located and when it will reach its destination. Sometimes even the approximate time of arrival of the package is displayed. Considering that these companies handle millions of packages a day, being able to efficiently run their operations as they do right now requires a complex Information Technology organization and real-time technology solutions in order to provide customers with the satisfaction they expect. The Business Problem
Prior to 1989, United Parcel Service Inc. or UPS, used paper sheets to record and route all information on each package. This information was later recorded in computers but the methods used were not efficient and increased demand forced the company into...
Cited: Turban, Efrain & Rainer, Kelly. Introduction to Information Technology. Danvers, MA: John Wiley and Sons Inc, 2003.
Rick Brooks. Wall Street Journal. (Eastern edition). New York, N.Y.: Jun 25, 2004. pg. B.2
Ashley Anderson, Pat Lenius. Supply House Times. Troy: Mar 2004.Vol.47, Iss. 1; pg. 54
Rick Brooks. Wall Street Journal. (Eastern edition). New York, N.Y.: Oct 6, 2003. pg. A.3
 Introduction to Informaion Technology. Copyright 2003 John Wiley and Sons Inc.
 Rick Brooks. Wall Street Journal. (Eastern edition). New York, N.Y.: Jun 25, 2004. pg. B.2
 Ashley Anderson, Pat Lenius. Supply House Times. Troy: Mar 2004.Vol.47, Iss. 1; pg. 54
 Rick Brooks. Wall Street Journal. (Eastern edition). New York, N.Y.: Oct 6, 2003. pg. A.3
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