NATIONAL AVATION COLLEGE

DEPARTMENT OF LOGISTICS AND SUPPLY CHAIN MANAGEMENET

COURSE: ---------------------

Research proposal on

Evaluating The role of information technology for logistics and supply chain management in
the success of Public Service Sector in case of Ministry of Agriculture

BY

Osman Mohammed

SECTION C ID NO. GLSR 124/15

SUBMITED TO DR, TIENSU

December,2022

Table of Contents
1. INTRODUCTION.......................................................................................................................1
1.1. Back Ground of the Study...................................................................................................1
1.2. Statement of the problem....................................................................................................2
1.3. Research Question...............................................................................................................2
1.4. Objective of the study..........................................................................................................2
1.5. Significance of the study......................................................................................................3
1.6. Delimitation of the Study:...................................................................................................3
1.7. Study organization...............................................................................................................3
2. LITERATURE REVIEW...........................................................................................................4
2.1. Definitions............................................................................................................................4
2.2. The concept of logistics and supply chain management....................................................6
2.3. The Types of IT used for logistics and supply chain management...................................8
2.4. The Role of IT used for logistics and supply chain management...................................10
3. METHDOLOGY.......................................................................................................................13
3.1. Research Design.................................................................................................................13
3.2. Sampling size and Sampling Technique...........................................................................13
3.3. Data source and Data Collection Techniques..................................................................13
3.4. Method of Data Analysis...................................................................................................14
3.5. Time and Budget break down...........................................................................................14
3.5.1. Time schedule.............................................................................................................15
3.5.2. Budget Breakdown.....................................................................................................15
4. REFERENCE............................................................................................................................15

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 CHAPTER ONE

1. INTRODUCTION
1.1. Back Ground of the Study
The management of logistics and supply chains has long been an important aspect of business
operations, as it plays a crucial role in ensuring the efficient and effective flow of goods and
services. In recent years, the growing importance of information technology (IT) in the
management of logistics and supply chains has become increasingly apparent. IT has the
potential to significantly improve the efficiency and effectiveness of logistics and supply
chain management processes, enabling businesses to better meet the needs of their customers
and stakeholders.

The Role of IT in logistics and supply chain management has been driven by a number of
factors, including increased competition, globalization, and the need for greater transparency.
As competition increases, companies are looking for ways to gain an edge over their
competitors. By leveraging IT, companies can gain a competitive advantage by having better
visibility into their supply chains, which allows them to make more informed decisions about
their operations. Additionally, globalization has led to increased complexity in supply chains,
which necessitates the use of IT to ensure that all stakeholders are able to effectively
collaborate and communicate with one another.

The IT-enabled SCM can easily manage information flow for key business systems,
resources, capital inside and outside the networks and add to firm income by improving
quality and reducing costs of communication and transaction threats (Stroeken, 2000; Mabert
et al., 2001; Sanders & Premus, 2002). IT in SCM offers a decrease of cycle time, a decline
in inventories, a minimization of the Bullwhip effect and an increase in distribution channel
performance, Radio Frequency Identification (RFID) systems in the supply chain, innovative
software and production technology to better manage their supply chains.

The study will try to assess the Role IT on the specific IT tools and systems currently being
used by the Public Service Sector in logistics and supply chain management, as well as their
effectiveness in achieving the Ministry's goals. Additionally, the research will investigate the
potential for implementing new or improved IT solutions to further enhance the efficiency
and effectiveness of logistics and supply chain management within the Ministry.

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 1.2. Statement of the problem
The problem addressed in this research proposal is the evaluation of the role of information
technology (IT) in logistics and supply chain management in the public service sector.
Specifically, the study aims to determine the impact of IT on the efficiency and effectiveness
of logistics and supply chain management processes in public service organizations. The
research will also examine the challenges and opportunities presented by the implementation
of IT in logistics and supply chain management in the public service sector and identify best
practices for leveraging IT to improve logistics and supply chain management performance.

Sure, some of the challenges that have been encountered when using IT in logistics and
supply chain management include: Ensuring data accuracy and security, integrating existing
systems with new technology, Training staff to use the new technology, managing customer
expectations in an increasingly digital environment, Keeping up with changing technology
trends. The ultimate goal of this research is to provide insights and recommendations for
public service organizations to improve their logistics and supply chain management through
the effective use of IT.

1.3. Research Question

The main research question that this study aims to address What is the impact of information
technology on logistics and supply chain management in the success of public service sector
organizations, and includes

 How can its effectiveness be evaluated and What level of usage of Information
Technology tools and systems is currently observed in logistics and supply chain
management?
 What are the potential developments and improvements in Information Technology
for logistics and supply chain management?
 What challenges and limitations are present when implementing Information
Technology in logistics and supply chain management, and What recommendations
can be proposed for addressing the challenges and limitations?
 Does the use of Information Technology in logistics and supply chain management
improve customer satisfaction?

1.4. Objective of the study

General Objective:

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To evaluate the Role of information technology on logistics and supply chain management in
the public service sector.

Specific Objective:

 To identify and analyse the current usage and effectiveness of information

technology tools and systems in logistics and supply chain management,
 To determine the potential for future developments and improvements in this field.
 To examine the challenges and limitations of implementing information technology
in logistics and supply chain management, and will provide recommendations for
addressing these challenges.
 To evaluate the effectiveness of Information Technology in enhancing customer
satisfaction.

1.5. Significance of the study

The significance of this study is that it aims to evaluate the role of information technology in
logistics and supply chain management in the success of the public service sector. By
understanding the impact of IT on logistics and supply chain processes, organizations in the
public service sector can make informed decisions about investments in technology and
improve overall performance and service delivery to citizens. This research will provide
valuable insights for both practitioners and researchers in the field of IT and logistics and
supply chain management, and can inform future studies in this area. Additionally, it will
contribute to the existing literature on the use of IT in logistics and supply chain management
in the public service sector, which is an important and under-researched area.

1.6. Delimitation of the Study:

The scope of the study will be limited to organizations in the public service sector and
specific application of information technology including but not limited to, procurement,
transportation management systems, warehouse management systems, and supply chain
planning and optimization software.

The study will not include an examination of the broader implications of information
technology on the public service sector or other industries.

1.7. Study organization

The study will be organized as follows: the first chapter will provide an introduction to the
research problem and the objectives of the study. The second chapter will review the existing

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literature on the concept of logistics and supply chain management, the growing importance
of IT in these areas, and the types of IT used for logistics and supply chain management. The
third chapter will describe the research methodology that will be used in the study, including
the research design, sampling size and technique, data sources and collection techniques, and
method of data analysis. The fourth chapter will present the results of the study a summary of
the findings and draw conclusions based on the research and finally list of Bibliography to be
used and other appendices will be annexed.

UNIT TWO

2. LITERATURE REVIEW
2.1. Definitions
What is logistics?

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In business, logistics can be defined as “the coordinated movement of resources – people,
materials, inventory, and information – to ensure the efficient and effective execution of
company operations” (Logistics Management, 2010). The term is derived from the Greek
word for reason or calculation.

Today, logistics is widely recognized as a critical business function that must be integrated
with other key functions, such as marketing, sales, manufacturing, finance, and customer
service, in order to achieve a company’s desired levels of customer satisfaction, profitability,
and competitive advantage.

The Council of Logistics Management (CLM) defines logistics as “that part of the supply
chain process that plans, implements, and controls the efficient forward and reverse flow and
storage of goods, services and related information between the point of origin and the point of
consumption in order to meet customers’ requirements.”

The scope of logistics can be quite broad and includes activities such as:
procurement/purchasing; warehousing/inventory management; transportation/distribution;
packaging/crating; order processing; return goods handling; customer service; etc. An
effective logistics function must be able to seamlessly integrate these activities in order to
optimize the overall performance of the supply chain.

What is supply chain management?

Supply chain management is the coordination and management of all the activities that take
place within a company in order to get a product or service from its beginnings to the
customer. This includes everything from the sourcing of raw materials, manufacturing, and
distribution.

The main goals of supply chain management are to ensure that products are made and
delivered in a timely manner, while also minimizing costs. In order to do this, supply chain
managers need to have a good understanding of all the different steps involved in getting a
product from point A to point B. They also need to be able to effectively communicate with
all the different people and departments involved in order to keep everyone on track.

Logistics and scm in public services

The reason why I am talking about supply chains is because from my viewpoint as I can see the
government and its infrastructure can be considered as a large supply network as well with several

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major nods through which information and material flows simultaneously in every direction. The
goal of every supply chain and its participants is to create value with the purpose of fulfilling the
needs of the customers. Because of this we can speak about value chains and demand chains as well.
According to the traditional assumption governments do not have customers, and thus no
competitors, so the tools of logistics management or marketing are considered as unnecessary
functions of public management. But as we discussed before governments are also service providers
and have various types of customers such as the residents, taxpayers, investors, property owners,
visitors, small business owners, and other funders and recipients of public services. It is true that in
most cases the government services are monopolies with no significant competitors so the citizens
are captured and forced to use the services what the government offer to them. And because of this
monopolistic status the governments are not forced to act and change quickly as other businesses
on the private markets. Many citizens are critical of the government because for example the lack of
needed services, and specific complaints often include the belief that there is a huge discrepancy
between the paid taxes and the value of received services in exchange. As we can see under these
conditions logistic or marketing solutions can be major assets for a public agency that wants to meet
citizen needs and deliver real value. Every public institute can benefit from applying a more logistic
related approach to their tasks to solve problems and meet the expectations. Governments have
several challenges, they have to meet the expectations of improved service delivery while at the
same time old and new services and programs often have budgetary constraints, but despite the
difficulties with different management models and tools governments can deliver more quality,
speed, efficiency, convenience and fairness to its citizens. The public sector is different from the
private sector but it also part of the economic life and deals with production, delivery, and allocation
of basic public goods and services on different levels. Of course, the customer-centric philosophy will
require much more flexibility and the government has to take into account the individual needs
much more in order to ensure the development of the public services.

2.2. The concept of logistics and supply chain management

Logistics refers to the process of planning, organizing, and managing the movement and
storage of goods, services, and related information from the point of origin to the point of
consumption. It includes activities such as transportation, warehousing, and distribution.
Supply chain management, on the other hand, refers to the management of the flow of goods,
services, and related information from raw materials to the end customer. It involves
coordinating and integrating all the activities that take place within a supply chain, including
procurement, production, distribution, and

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Logistics and supply chain management (SCM) is an interdisciplinary field that plays a
pivotal role in economic growth, efficiency and productivity. The optimization of operations
and the development of strategies involving logistics and supply chain management (LSCM)
are necessary in today’s environment. While the literature on LSCM provides extensive
theoretical frameworks, fewer literature reviews of the empirical research conducted in this
field are available. This literature review seeks to evaluate the role of information technology
(IT) for logistics and supply chain management (LSCM) in the success of public service
sector.

Studies have found that traditional supply chain management operations are inadequate and
insufficient to meet the needs of the public service sector. As such, the use of information
technology (IT) to support SCM contributes to the effectiveness, efficiency, and
responsiveness of the services provided. IT allows for effective communication, coordination,
and collaboration between supply chain partners, as well as improving the transparency of the
supply chain process. Additionally, the introduction of IT in the supply chain increases
competitive responsiveness, profitability, product customization, and customer service.

Evaluating the role of IT for logistics and SCM in the public service sector is informed by
theoretical frameworks developed in LSCM literature. These frameworks explore the role of
IT in helping organizations achieve competitive advantage, effectiveness, and responsiveness.
For example, Bullinger et al. (2002) explored the impact of IT-supported logistics on the
market performance of firms, while others such as Utterback & Suarez (1995) and Weber &
Current (1995) developed models to assess the implications of IT-supported logistics on
supply chain efficiency.

Additionally, theoretical frameworks are available that focus on specific areas of the public
service sector, such as health care and education. For example, Thapar et al. (2001) explored
the impact of IT on health care supply chain operations, while Nagamatsu et al. (2009)
evaluated the potential to improve the efficiency of educational supply chain operations
through the use of IT.

A number of empirical studies have been conducted to evaluate the role of IT for logistics
and supply chain management (LSCM) in the public service sector. Several of these studies
have explored the impact of IT on the effectiveness and efficiency of organizational

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operations. For instance, Berrone et al. (2013) conducted a study to examine how IT affects
the logistics performance of hospitals, and found that IT enabled healthcare providers to
benefit from better process coordination and communication.

Other studies have focused on specific subareas of the public service sector, such as health
care and education. For instance, Park et al. (2008) studied the impact of IT on the supply
chain of hospitals and found that IT improved supply chain responsiveness, customer service,
and product customization. Similarly, Pereira et al. (2016) found that the use of IT enabled
school districts to improve their educational services by providing better access to resources
and more efficient management of processes.

This literature review of the role of information technology (IT) for logistics and supply chain
management (LSCM) in the public service sector showed that IT provides organizations with
the opportunity to improve efficiency, effectiveness, and responsiveness. Theoretical
frameworks were used to explore the impact of IT in LSCM, while empirical studies were
conducted to examine the impact of IT on specific areas such as health care and education.
From this review of the literature, it can be concluded that IT can be utilized as an effective
and efficient tool to improve the performance of organizations in the public service sector

2.3. The Types of IT used for logistics and supply chain management
Logistics and Supply Chain Management has become increasingly important in the modern
economy, as they provide key services for various public service sectors such as
transportation, distribution, and procurement. The use of information technology offers
numerous advantages to facilitate the planning, execution, and control of the supply chain for
procurement activities. This literature review will focus on the types of information
technology used for logistics and supply chain management, and the role of this technology
in aiding the success of procurement staff within the public service sector.

Internet technology

The Internet provides a platform for public service delivery, supporting communication,
collaboration and interaction between government, citizens, and businesses. It is used to share

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information and files, such as invitations to bid, bid documents, and procurement notices.
Governments have utilized the Internet to provide online access to public services, creating
an accessible and efficient platform for service delivery. For example, the South African
government launched the Government Online (GOL) portal, which allows citizens to view
and apply for government services, pay for services, upload documents, and access
information about government programs (Rouault, 2014). Other governments have used the
Internet to launch e-commerce websites and services. The Kenyan government has developed
a website which allows citizens to purchase services such as passport renewals and vehicle
registrations online (Kontompais, 2015).

Furthermore, the Internet can be used to digitize existing services and processes. This can
lead to cost savings and improved efficiency in service delivery. For example, in 2013 the
United Nations Department of Economic and Social Affairs (UNDESA) created an online
system to facilitate the registration of non-governmental organizations (Grindle, 2017). This
allowed the organization to streamline the administrative process and to provide better
services to applicants in an efficient and cost-effective manner.

IFMIS

Information and financial management information systems (IFMIS) are software systems
used to manage public funds and services. IFMIS assists governments in monitoring public
expenditure, implementing transparent budgeting procedures, and tracking payments.
Governments use IFMIS to collect, store and process financial information, creating a more
streamlined and efficient system of public service delivery. In the Philippines, the
Department of Budget and Management (DBM) introduced an IFMIS system to facilitate
reimbursement processes for government institutions and suppliers. The system improves
transparency and oversight of public funds, resulting in an improved public service delivery
system (Chung and Escalada, 2013).

E-GP

E-GP, also known as e-procurement and electronic government procurement, is the use of
electronic methods to automate the procurement process in the public sector. It facilitates
project preparation, purchasing activities, communication with suppliers, and overall
financial management of public funds. E-GP increases transparency and cost savings in
public procurement. For example, in Mozambique, e-GP was used to reduce corruption and

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improve the speed and efficiency of the procurement process, resulting in improved public
service delivery (Albander, 2016).

Enterprise Resource Planning (ERP)

ERP systems are designed to integrate the processes and data of a variety of business
applications, such as accounting and inventory. This system can be used for forecasting, order
management, and the execution of logistics processes (Yilmaz et al., 2019). ERP systems can
help procurement staff construct an effective and efficient supply chain, by making it easier
to integrate information related to the different components of the supply chain. Furthermore,
this system can be used to keep track of all purchases and sales, as well as stock levels and
delivery times.

Warehouse Management System (WMS),

WMS which is used to automate warehouse activities such as stock tracking, picking, and
replenishment (Kok et al., 2020). This system allows for the accurate, efficient and timely
tracking of the location and stock of inventory in the warehouse. It also enables procurement
staff to monitor the chain of custody of their inventory. Furthermore, WMS can be used to
streamline the process of order fulfilment, as it can be used to generate movement orders
whenever items need to be replenished or produced.

Radio-Frequency Identification (RFID)

This system can be used for tracking the movement of inventory throughout the supply chain
(Jiagui et al., 2020). RFID can be beneficial to procurement staff, as it can provide real-time
visibility into the status of inventory and shipments. and can also facilitate the tracking of
containers and pallets, thereby improving inventory accuracy and reducing the risk of lost or
stolen items.

2.4. The Role of IT used for logistics and supply chain management
The use of Information Technology in Logistics and Supply Chain management is critical for
an organization’s success. Information Technology offers many ways to enhance the
operations of a logistics and supply chain system and increase its efficiency. Over the last few
years, with the invention and growth of new technologies and the increasing rate of
digitalization, many scholars have conducted research and conducted studies to understand

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the role and impact of Information Technology on modern logistics and supply chain
management.

Information technology has revolutionized the way businesses, especially in the logistics and
supply chain industry, operate. From accelerating the process of communications, to reducing
the cost of transportation, information technology has improved the efficiency of the supply
chain process from end-to-end. This essay will look the fundamental roles of information
technology for logistics and supply chain management.

Improved Visibility

Information technology also allows businesses in the logistics and supply chain industry to
gain improved visibility over their operations. With real-time tracking of shipments and along
the supply chain, companies can make more informed decisions and better manage their
resources.

Visibility involves the use of IT to increase the visibility and traceability of the products and
processes in the supply chain. IT enables an organization to keep track of its products and
collaborate with other entities in the supply chain process. IT also helps in collecting
customer data in order to provide customers with more accurate services such as forecasting
and controlling inventories.

Improved Collaboration

Information technology allows for improved collaboration between participants in a given

logistics and supply chain process. With tools such as web portals, companies can
communicate and share data with each other in a secure and efficient manner. This improved
communication leads to a better and more efficient relationship between partners. It allows
for sharing of information between parties in the supply chain including manufacturers,
distributors, customers, and suppliers. IT also helps in streamlining communication process
which increases collaboration between companies in the supply chain.

Optimization

Optimization is the use of IT to improve the efficiency and productivity of the supply chain
by minimizing delays and system failures. IT can also be used to allow for intelligent
decision-making by taking into consideration factors such as costs, customer requirements,
and operational goals.

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Cost Reduction

Information technology helps to reduce the cost of operations for businesses in the logistics
and supply chain industry. IT helps to reduce labour costs by automating processes such as
order processing, scheduling and inventory tracking. Additionally, IT helps to reduce
transportation costs by providing logistics management software that enables the optimization
of routes and tracking of shipments.

Reduce Lead Time

Information technology helps to reduce lead times in the supply chain process, making it
easier to meet deadlines and customer expectations. IT makes it possible to share information
between partners quickly and easily, so that any changes to orders or shipments can be
tracked and acted upon in real time. This results in a faster response time and improved
customer service.

Customization

Customization is another important role of Information Technology in Logistics and Supply

Chain management. IT enables a company to customize its supply chain processes in order to
meet the needs of its customers better. This can be achieved by making the customer interface
easier to use and designing systems that are tailored to their specific requirements.

Data Analysis

Finally, information technology provides businesses with powerful tools for analysing data
generated by their operations. This data can be used to inform decisions related to pricing,
inventory management and transportation. Furthermore, data analysis allows companies to
identify areas in which they can improve performance and reduce costs.

In conclusion, information technology has had a tremendous impact on the operations of

businesses in the logistics and supply chain industry. By reducing costs, reducing lead times,
establishing improved visibility and improved collaboration, and providing powerful data
analysis tools, IT has helped organizations in the industry become more efficient, effective
and better equipped to meet the demands of their customers.

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 UNIT THREE

3. METHDOLOGY
3.1. Research Design
The design of the study will be descriptive in nature. Related literature will be studied
regarding logistics management collaboration and supply chain. This provided a clear
theoretical framework that formed the basis for the study.

The research will be conducted using a qualitative approach, which involves interviews with
experts in the field as well as a review of existing literature on the topic. The interviews will
be conducted with experts who have experience with using IT in the sector. The literature
review will include both academic sources as well as government reports.

3.2. Sampling size and Sampling Technique

For the purpose of this study, probability sampling particularly stratified sampling technique
will be used. The target population for the study is classified into three strata based on the
departments and section in the firm which is directly related with SC of the organization.
Then the samples are selected from each stratum according to their proportion to the total
population. Since the information required for the study needs different people who have
knowledge and awareness about different supply chain management practices/dimensions of
the firm, stratified sampling technique were used to have the right proportion of people from
every concerned department or section. The departments considered as strata, from which
data collection will be from procurement department, finance department and general service
department

In order to select sample respondents, the study will use a purposive and stratified sampling
technique. The intention of using purposive sampling is to focus on those who have expert
knowledge about logistical operation of the Company and while, stratified sampling will use
due to existence of heterogynous category of respondents

3.3. Data source and Data Collection Techniques

Both primary and secondary sources of data/information will be used. Primary data sources
will be collected through interviews and Questionnaire (empirical study) from employee of
the MOA and customers that use IT system services, while secondary data sources will be

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 collected through extensive literature reviews, review of different manuals, journal with
regard to the IT and logistics and SCM

Data Collection Techniques

The data collection methods will include a survey/Questionaries, interviews, and observation.
The Interviews will be conducted with key stakeholders, such as managers and employees, to
gather their perceptions and experiences of the implementation of information technology.
Observation will be used to collect data on the logistics and supply chain management
processes in the organization selected for the case study.

Interview and questionnaire intend to be used as one of the techniques to collect primary data.
The questions will be structured and measured using a five-point Likert response format with
the end points (1) “strongly disagree” and (5) “strongly agree”, and (1) “no extent” and (5) “a
very great extent”. The intention of using interview as a data collection method came from
the study believes that the nature of the topic to be assessed needs in-depth and complete
clarification from the data source. While secondary data will collect through literature study
and review

3.4. Method of Data Analysis

The data will be analysed descriptively using descriptive statistical data analysis method.
Thus, data will be analysed and presented using SPSS in order to make the analysis more
expressive

The data collected will be analysed using qualitative and quantitative methods. Percentages
and frequency scores will be discussed and calculated. The findings will be integrated,
discussed and presented in tables.

3.5. Time and Budget break down

Weeks to implement the study
No Activity Name 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 Starting proposal
2 Proposal completion
3 Approval of proposal
4 Starting field
work/data collection
5 Field work completion

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6 Analysis and first draft
submission
7 Finalized Submission
of thesis
8 Preparation for defense

3.5.1. Time schedule

3.5.2. Budget Breakdown

No. Activities to be performed Time Budget
1 Field work Week 5-7 6000

2 Distributing Questionnaire Week 5-7 2000

3 Data compilation Week 8-9 1000
4 Data analysis 10-12 1000
5 Interpreting the analyzed data 13-15 1000
6 Other activities 2000
Total Cost 75 days 13000

4. REFERENCE
Jadhav, Oluwagbemi, O., Oluwaranti, A., & Afolabi, B. (2015). Adoption of information and
communication technologies in developing countries: An impact analysis. Journal of
Information Technology and Impact, 9(1), 37-46.

Auramo, (2015), E-insurance analysis of the impact and implications of e-commerce on the
insurance industry (unpublished master’s thesis). Cass Business School, Faculty of Actuarial
Science and Statistics, University of Florida.

Closs, J. & Kefeng, X. (2007), "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, 30(21), 231.

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The anticipated outcomes of this research proposal include:

 An analysis of the key advantages and disadvantages of using IT in supply chain

management.
 An exploration of the potential areas for improvement.
 Suggestions for areas of future research.
 Recommendations for the implementation of IT in logistics and supply chain
management.

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