How Does Information Technology Help To Develop Logistic Industry?

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How does Information Technology help to Develop Logistic Industry?



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The purpose of the study is to explore the role of information technology in the development of logistics industry. The main focus of this study is on how IT can help in developing the logistics industry. The research reviewed past researchers to analyse the significance of IT in supply chain, and in particular logistics. The research found a significant impact of IT on the effectiveness and efficiency of logistics operations Adopting IT not only saves time, but saves money as well.

Table of Contents






Usage of IT in Logistics and SCM4

Logistics and ICT7

IT and 3PL operations8


Steps to utilize IT Effectively11



Utilized Information Technology in Logistics

With the yearly economic growth of Australia and increasing access in the WTO, there has been an increase in demand in the logistics services and the logistics industry is enjoying a growth period. Therefore, modern logistics facilities are being developed to cater to this extreme demand of logistics services. These facilities include distribution centres, logistics parks and warehouses and are built at a record setting speed. Moreover, many logistics service providers have also invested heavily into information and logistics technologies to obtain the maximum benefit out of their business by running their businesses efficiently.

As Australia keeps moving towards economic growth and development, and the business keeps increasing, logistics will play a key role in the supply chain management of the businesses. However, effective and efficient logistics management is required for smooth operations and growth of the businesses (Bowersox et al., 2002). The increasing competition among firms due to globalization has also prompted firms to develop their logistics activities as a part of competitive strategy. Firms who do not have expertise in logistics tend to outsource their logistics activities to 3PL or 4PL service providers. This has created a huge demand for logistics services in the logistics industry (Lieb and Miller, 2002).

To cater this increasing demand for logistics services, and satisfy the diversifying needs of the customers, logistics service providers work efficiently by adopting information technologies (Sauvage, 2003). Previous researchers have found that the most important tool to gain competitive advantage is innovation (Sauvage, 2003; Lieb and Miller, 2002). However, most of these studies have focused innovation in the manufacturing industry; although the focus has now been shifting towards innovation in the service industry (Gallouj, 2002; Howells and Tether, 2004; Miles, 2004). In order to survive in this knowledge-based economy, the company must improve their capability to innovate. For logistics service providers, technological innovation is the ...
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