The Impact of an Information System on Logistics Management

A well-designed information system is a key element of logistics in the chain of managing, organizing and operating in both profit and nonprofit organizations. The advantages of applying strategic management in the development of information technologies contribute to positive development of logistics functions in an organization or institution as a whole. A prerequisite for successful logistics management is systematic gathering of required business information. Today it is no longer possible to run a successful operation without a working information system. A fully constructed information system contributes essentially to an organization's competitive advantage. These advantages are reflected in creating new, competitive positions, in cost reduction and achieving a certain dependency differentiation in operations, as well as in better results of all the logistics functions within the organization. The basic goal of an information system within logistics management is to make successful connections between suppliers, consumers, and competitors. Depending on the logistics management decision, the mode of making these connections can be offensive or defensive. The basic aim is to achieve comparative advantages through logistics. If logistics management is objective, this will lead to decision making that will contribute to: respectability of the purchasing function, competitive advantage in the supply chain, possible associations of suppliers, connecting logistics with consumers, determining the contribution of logistics to the organization’s competitiveness. The information system of logistics functions plays a role in making a correct interpretation of the company's performance as well. Strategic options of generators for the logistics information management need to be continuously monitored, and usage of new options can improve the overall logistics functions within an organization.