The Influence of Information Technology on Integration of Logistics Processess

Business globalization increases physical distance between location of raw material production and location of product and services consummation, by which logistics expenses and the entire business costs increase. Achieving greater efficiency and competitiveness requires adoption of numerous recent trends in logistics. It includes process approach to business using information technology in the integration of logistics processes, especially technologies such as exchange of electronic data, bar codes and radio frequency identification. A prerequisite for the integrat ion of logistics chain is a more considerable use of information technology in particular logistic processes: inventory management, procurement, warehousing, transportation and return. Information technology is the basic connection between logistics proces ses and it allows continuous communication in real time, necessary for full integration of business processes within the logistics chain. Considering high investments required by the usage of modern technologies, it is expected that primarily large enterprises of Croatian economy will take the initiative in launching and developing the modern logistics systems. These were the subject of a research conducted in 2009 with the purpose of examining the attitudes of logistics department heads regarding the use of information technology in logistics. This paper emphasizes the importance of applying information technology in the integration of logistics processes. It is based on the results of that research and it sets out guidelines that should ensure companies mu ltiple benefits from applying modern technologies and integrating logistics processes, thus strengthening their position in the global market.