Professional Documents
Culture Documents
1Adapted from a definition of “marketing information system” provided by Philip Kotler and Gary Armstrong in
Principles of Marketing, 11th ed. (Upper Saddle River, NJ: Prentice Hall, 2006), Chapter 4.
General Types of Information
Management Systems
Management Information System (MIS) and
Executive Information System (EIS)
General Types of Information
Management Systems
Decision Support Systems (DSS)
•Help managers make decisions by providing
information, models, or analysis tools
•Examples of specific uses include
– Vehicle routing issues
– Inventory control decisions
– Developing automatic order picking systems
– Optimization models for buyer-seller negotiations
General Types of Information
Management Systems
Decision Support Systems (DSS)
•Several prominent DSS techniques include:
– Simulation
• Technique that models a real-world system, typically using
mathematical equations to represent the relationships
among the system’s components
– Application specific software
• Technique developed to help managers deal with specific
logistics processes or activities
• Popular option includes on-demand software (also
referred to as software-as-a-service or cloud computing)
General Types of Information
Management Systems
Decision Support Systems (DSS)
•Examples of logistics-related application-specific
software
– Transportation management systems (TMS)
• Software package that automates the process of building orders,
tending loads, tacking shipments, audits, and payments1
– Warehouse management systems (WMS)
• Software package that provides oversight of the storage and flow
of materials within a company’s operations2
1Amy Zucherman, “Transportation Management Systems Give Shippers Power to Make Smarter Trucking Choices,”
World Trade, January 2008, 34-38.
1 Sam Joseph and Daniel Scuka, “AI”, Japan Inc., November 2001, 20-28.
General Types of Information
Management Systems
Enterprise Systems
•Create and maintain consistent data processing methods and
an integrated database across multiple business functions1
1Joel D. Wisner, G. Keong Leong, and Keah-Choon Tan, Principles of Supply Chain Management: A Balanced
Approach, 2nd ed. (Mason, OH: South-Western Cengage Learning, 2008), p. 507.
General Types of Information
Management Systems
Enterprise Systems
•Shortcomings of Enterprise resource planning
(ERP)
– Costs of installation
– Time-consuming installation process
– Initially lacked strong application-specific
logistical capabilities such as TMS or WMS
The Internet’s Influence on Logistics
• Approximately 35% of the world’s population
uses the internet – up from 5% at the beginning
of the 21st century
1 Bridget McCrea, “Cloud Breakthrough,” Logistics Management 51, no. 11 (2012): 36-40.
The Internet’s Influence on Logistics
• Cloud Computing
– Advantages of Cloud Computing
• Pay-per-use allows firms to avoid high capital
investment which speeds up ROI for the software
• Since it involves operational as opposed to capital
expenditures, it is a viable option for firms that could
not afford to purchase, install, and maintain application-
specific software such as TMS and WMS
• Due to the economic slowdown of 2007, many firms
were forced to slash IT expenditures, thus benefitting
cloud-based applications
The Internet’s Influence on Logistics
• Cloud Computing
– Advantages of Cloud Computing continued
• Faster and less costly installation
• Smaller IT staff
• Regular upgrades and updates from the
software provider
The Internet’s Influence on Logistics
• Cloud Computing
– Drawbacks of Cloud Computing
• Upgrades and updates can be too numerous
and too frequent
• Limited amount of customization
• Security issues
The Internet’s Influence on Logistics
• Electronic Procurement, or e-procurement
- Uses the internet to make it easier, faster, and less
expensive for an organization to purchase goods
and services
The Internet’s Influence on Logistics
• Electronic Procurement, or e-procurement
– Benefits realized from e-procurement include:
• Transactional benefits
– Measures the benefits of enhanced
transactional efficiency associated with e-
procurement
• Compliance benefits
– Focus on the savings that come from
adherence to established procurement
policies
The Internet’s Influence on Logistics
• Electronic Procurement, or e-procurement
– Benefits realized from e-procurement include:
• Management information benefits
– Encompass those that result from
management information, customer
satisfaction, and supplier satisfaction levels
after implementation of e-procurement
• Price benefits
– Are those that are given as a result of
adopting e-procurement
The Internet’s Influence on Logistics
• Electronic Procurement, or e-procurement
- Drawbacks of using e-procurement
• Security risk of transmitted information
• Impersonal as human interaction is replaced
by computer transactions
Information Technology Challenges
• IT is a tool that can help manage organizational
problems, but it is not a be-all/end-all solution
for organizational problems
• Theft of proprietary information
– Websites protected from viruses and hackers
– Decreasing size and increasing portability of
technology devices
• Employee resistance to IT implementations