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A Survey of Information Technologies in Logistics Management

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A Survey of Information Technologies in Logistics Management
A Survey of Information Technologies in Logistics Management

Anil Gurung
University of Texas at Arlington Department of Information Systems and Operations Management, College of Business Administration Office: Room 630 Business Building Box 19437 701 S West St. Arlington, Texas 76019-0437 Voice: 817.272.3528 Email: gurung@uta.edu

ABSTRACT This paper analyzes the impact of information technologies (IT) on logistics by conducting a survey of literatures on academic logistics journals and practitioner journals. The literature survey and practice find that third party logistic providers have better opportunity to leverage IT since they need to have interoperable IT systems with their customers. The business philosophy of Just-In-Time (JIT) has also contributed to the impact of IT in logistics. Further, information technologies are identified that has benefited the logistics. Future directions of logistics are discussed. INTRODUCTION The proliferation of information technologies (IT) and the internet technologies have provided impetus and challenges to the logistics. New technologies present new means to manage the flow of information. IT as a productivity tool can be utilized to both increase the capability and decrease the cost at the same time (Closs et al., 1997). It has been widely accepted that firms can achieve competitive advantage by cost reduction or differentiation with the proper implementation of IT (Porter & Millar, 1985). Enabled by IT the logistics has become a source of competitive advantage for many firms. Two streams of research are identified that highlights the role of IT in logistics. First stream relates to just-in-time logistics information system (Anderson & Quinn, 1986; Bookbinder & Dilts, 1989; Das & Handfield, 1997; Gomes & Mentzer, 1988; Perry, 1988; Schwarz & Weng, 2000; Spencer, M. S. et al., 1994; Spencer, M. S. et al., 1996; Takahashi & Nakamura, 2000; Titone, 1996; Wafa & Yasin, 1996). The other stream is the third party



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Chatfield, A.T. & Bjorn-Andersen, N. 1997, "The impact of IOS-enabled business process change on business outcomes: Transformation of the Value Chain of Japan Airlines", Journal of Management Information Systems, vol. 14, no. 1, pp. 13-40. Closs, D.J. & Kefeng, X. 2000, "Logistics information technology practice in manufacturing and merchandising firms" An international benchmarking study versus world class logistics firms", International Journal of Physical Distribution & Logistics Management, vol. 30, no. 10, pp. 869-86. 624 Closs, D.J., Goldsby, T.J. & Clinton, S.R. 1997, "Information technology influences on world class logistics capability", International Journal of Physical Distribution & Logistics Management, vol. 27, no. 1, pp. 4-17. Das, A. & Handfield, R.B. 1997, "Just-in-time and logistics in global sourcing: An empirical study", International Journal of Physical Distribution & Logistics Management, vol. 27, no. 3/4, pp. 244-59. Dudley, L. & Lasserre, P. 1989, "Information as a Substitute for Inventories ", European Economic Review, vol. 33, no. 1, pp. 67-88. Gomes, R. & Mentzer, J.T. 1988, "A Systems Approach to the Investigation of Just-In-Time ", Journal of Business Logistics, vol. 9, no. 2, pp. 71-88. Gorry, G.A. & Morton, M.S.S. 1989, "A Framework for Management Information Systems", Sloan Management Review, vol. 30, no. 3, pp. 49-61. House, R.G. 1978, "Computer Models in Distribution Management", Journal of Business Logistics, vol. 1, no. 1, pp. 129-52. La Londe, B.J. & Auker, K. 1973, "A Survey of Computer Applications and Practices in Transportation and Distribution", International Journal of Physical Distribution, vol. 3, no. 5, pp. 292-301. Langley, C.J., Carlisle, D.P., Probst, S.B., Biggs, D.F. & Cail, R.E. 1988, "Microcomputers as a Logistics Information Strategy", International Journal of Physical Distribution and Materials Management, vol. 18, no. 6, pp. 11-7. 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Schwarz, L.B. & Weng, Z.K. 2000, "The Design of a JIT Supply Chain: The Effect of Leadtime Uncertainty on Safety Stock ", Journal of Business Logistics, vol. 21, no. 2, pp. 231-52. 625 Sink, H.L. & Langley, J.C.J. 1997, "A managerial framework for the acquisition of third-party logistics services", Journal of Business Logistics, vol. 18, p. 163. Spencer, M.S., Dale, S.R. & Patricia, J.D. 1994, "JIT Systems and External Logistics Suppliers", International Journal of Operations & Production Management, vol. 14, no. 6, pp. 6074. Spencer, M.S., Daugherty, P.J. & Rogers, D.S. 1996, "Logistics support for JIF implementation", International Journal of Production Research, vol. 34, no. 3, pp. 701-14. Srivastava, B. 2004, "Radio frequency ID technology: The next revolution in SCM", Business Horizons, vol. 47, no. 6, pp. 60-8. Stenger, A.J. 1986, "Information Systems in Logistics Management: Past, Present, and Future", Transportation Journal, vol. 26, no. 1, pp. 65-82. 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