Information Technology as an Element of Competitive Advantage Essay

Information Technology as an Element of Competitive Advantage - Essay Example Logistics management is an integrating function that coordinates the entire activities in logistics, together with logistic activities related to other functions such as marketing, finance, sales manufacturing and information technology (Long 2003, p.12). There are a number of components in logistics management, since it covers the entire business supply chain. Transportation logistics is one of the most discussed parts in these supply chain management. How a firm moves its goods from a certain location to a different one can have a monumental impact on the general performance (Long 2003, p.10. In a number of cases, this sector of the supply chain becomes given to a third party that deals in the transportation. This enables a business to manage all the seasonal and market demand changes, reducing the desire to hire and fire workers based on the business cycles. Nevertheless, transportation is just but a piece of logistics. There exist sectors in supply chain that get governed by this logistic management. These are; warehousing, supply, order fulfillment, transportation and also customer service (Long 2003, p.11). Supply Supply majors with the capability of securing goods or even raw materials that will later get sold to the consumer as finished goods. Running an appropriate supply requires considerable forecasting in demand, and the sound understanding of the minimum requirements in production to turn to profits (Long 2003, p.10). All the buyers based in the purchasing department, are solely responsible for getting the necessary raw material or goods, for the best available price and having the products in their possession when needed. Firms should have knowledge of the trends in the market to predict the supply that people will need, and to use this information to manage raw materials for the production of goods in order to meet the high demand. Manufacturers find this sector of the supply chain a little complex (Long 2003, p.11). They can employ a few vendors to make sure they will always locate all the raw materials the firm requires. They should always be aware of the lag times for these raw materials to reach their base. If any raw material takes three months to arrive from the date of purchase or order, the business should have not less than a three month supply on hand (Long 2003, p.14). The suppliers should be at all times monitored and counted. Transportation The transportation logistics does not only apply to the acquisition of raw materials and goods to the warehouse, but to supply all the retail locations (Long 2003, p.15). In other instances, the sales force moves with the goods at hand in a way to different retail stores, as with beverages and snacks. In a number of instances, leading retailers get shipments of goods from these warehouses. Where the movement of goods takes freight through country borders or state lines, management in logistics should address compliance with the set regulations whether local, federal and even international. Vehicles that get registered improperly or failure to reach the Transportation Department regulations can totally spoil a firm’s ability to transport goods when required (Long 2003, p.16). Such delays lead to additional costs as other third parties must become hired to take the goods where they should be on time. This is also a reason as to why a number of