WHY LOGISTICS IS A NECESSITY

Why Logistics is a necessity

Why Logistics is a necessity

Abstract

The growth of the supply chain concept has required logistics organizations to improve the flow of information both internally and externally. The increased information requirements have facilitated an integration of logistics information systems (LIS) and supply chain information systems in many companies. The increasing use of electronic commerce and enterprise resource planning and other LIS tools and techniques will shape the business process for the foreseeable future. Companies should understand their options and their impacts when making decisions to support their supply chain systems. (Piturro,1999)

Introduction

There has been a steady growth of information systems in inventory management, production, and logistics. This paper reports the results of a recent longitudinal study into the use of logistics information systems (LIS). The survey results reported herein highlight an increasing use of LIS and its ability to link functional areas of business. Additionally, the paper examines the role of two information system tools--electronic commerce (EC) and enterprise resource planning (ERP)--that had not been investigated in previous editions of the study. Information regarding the respondents' EC and ERP adoption sequences, use of key subsystems, and relationships with integrated logistics systems are presented.

To accomplish these tasks, the paper is divided into six sections. Following the introduction, a brief literature review provides insight into the issues of LIS adoption and integration. Other key sections provide insight into the study methodology, survey respondent profiles, and major findings. Limitations of the study and future opportunities for analysis are also provided. Finally, a conclusions section summarizes the key points of the research.(Gustin,1995)

Previous research

LIS has been a major area of study in the logistics and operations areas for more than 25 years (House and Jackson, 1976; Lambert et al., 1978; Williams et al., 1998; Whipple et al., 1999). Issues relevant to the current research include: the usage rates of LIS tools, integration of logistics and LIS, emerging LIS technologies, and LIS adoptions patterns. Key works in each relevant area are discussed below.

A variety of researchers have examined the usage rates of various LIS tools. A number of these studies were conducted approximately every five years since 1975 (Gustin; Gustin and Gustin; Rutner et al., 2001). This stream of research provided the framework for the current study and includes a number of relevant findings. Each study is much like a company's financial statement. The study provides a “snapshot in time” of the current LIS tools in use as well as identifying future possible trends. For example, each study identifies the usage rates of approximately twenty-five LIS subsystems. This series of studies provides the plan for not only the theoretical portion of the study, but also the actual design of the longitudinal portion of the questionnaire used in this study. Finally, a number of additional studies help to frame the overall LIS research by identifying the various programs, data collection elements, and previous usage rates to ensure that all of the traditional elements of a LIS are included within this study ( Waller, ...