Information Logistics: Exploring Effects of IT on Logistics in Hungary - Essay Sample

Introduction

Communication in organizations is crucial for efficient coordination of activities. Information logistics refers to the flow of data form machine actors to humans or between several firms to form a network. The concept primarily links to information technology, information management, and information operations. Olah, Karmazin, Peto, and Popp (2018) attempt to describe the effects of information technology on the logistics service industry in Hungary. Information logistics enable a firm to improve its distribution network.

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IT has a significant impact on supply chain performance. Efficient IT-infrastructure enables enterprises to act rapidly to electronic-related challenges. Firms with better IT infrastructure respond quickly, have a better growth rate, realize better sales and experience shorter returns on investments (Olah et al., 2018). Modern enterprises aim at attaining efficient information management and flow instead of focusing on stocks and products. Therefore, effective information logistics across firms are critical in managing supply chains.

IT developments also enhance an enterprise's flexibility. They enhance "the firm's nature of boundaries and the time band in which tasks get executed (Olah et al., 2018)." It also changes the pace and task nature, thus enabling firms to respond to market changes rapidly. For Logistics Service Providers (LSPs), IT capabilities increase their potentials to provide and deliver desired changes in an operational performance such as minimizing the costs of service in the long run.

This article supports the text because the researchers concluded that segment-specific IT infrastructure has a positive effect on integration and financial success degrees but do not affect enterprise flexibility. This concept implies that these IT investments enhance service standards and process effectiveness but do not modify the reactions. It reveals "...that sector-specific IT investments improve process effectiveness and service standards, but they do not improve the reactions, that is, the flexibility of the service provider expected by customers (Olah et al., 2018)." Based on this article, information logistics enables a firm to capitalize on its distribution network. It also allows for costs reduction through the creation of globalized distribution networks.

While working for a stock broking company, I noticed that the incorporation of efficient information technologies helped the firm react to market changes. It also alerted the investors on what stocks to purchase to avoid losses. This improved information logistics system enabled the firm to increase its sales and productivity.

References

Olah, J., Karmazin, G., Peto, K., & Popp, J. (2018). Information technology developments of logistics service providers in Hungary. International Journal of Logistics Research and Applications, 21(3), 332-344.