Logistics Information Systems Essay Example

studied in the logistics and operations fields for over 25 years (House and Jackson, 1976; Lambert et al. 1978; Williams et al., 1998; Whippier et al., 1999). The research focuses on relevant topics such as the usage rates of LIST tools, integration of logistics and LIST, emerging LIST technologies, and patterns of LIST adoption. Important works in each relevant area are further explained below. Several researchers have examined the usage rates of different LIST tools, with multiple studies conducted approximately every five years since 1975 (Gusting; Gusting and Gusting; Retune et al., 2001).

The current study is based on previous research, which serves as the foundation and includes several pertinent findings. Each study functions similarly to a company's financial statement, offering a momentary snapshot of the present LIST tools being utilized and predicting potential future trends. For instance, each study evaluates the usage rates of about twenty-five LIST subsystems. These studies not only inform the theoretical aspect of our study but also shape the actual design of the longitudinal survey employed in this research.

Finally, several additional studies (Waller, 1993; Langley et al., 1988; Killing and Grimm, 1988) have contributed to the overall LIST research by identifying the various programs, data collection elements, and previous usage rates. These studies ensure that all of the traditional elements of a LIST are included within this study (Killing and Grimm, 1988).

An area that is closely related to this is evaluating the organization's capability to integrate logistics and LIST. The research conducted by Gusting et al. examines the impact of logistics integration on the adoption and success of LIST within an organization. The study reveals several important

findings, which are based on the adoption of different LIST application tools and the level of logistics integration. The respondents were specifically asked about the extent of logistics integration across their organizations.

The research shows that companies with extensive logistics integration tend to use more LIST systems. The study builds on previous research and also explores emerging trends and IS areas. This includes a section on current trends in LIST to address new issues. Recent studies on IS tools have helped identify new systems and methods that need to be examined, which were not included in the previous research by Gusting et al. (1995).

The text discusses new types of supply chain management tools (Harrington, 1997), inventory related software (Mislead, 1994; Forger, 1999), functional execution systems for logistics and operations (Smith et al., 1998), and transportation and distribution software suites (Anonymous, 1998). In addition, two other topics receive extensive attention in the current trends literature: ERP (Bradley et al., 1998; Shaw, 1998; Potpourri, 1999; Bradley et al., AAA) and SEC (Decoy, 1998; Bradley and Bradley; Witt, 1999; Brothers, 1999).

The increasing use of ERP and SEC presents an interesting area that is likely to impact LIST. The combination of previous research on LIST and the emerging trend in IS offers a solid framework for this research. However, it does not provide a theoretical framework for analysis itself. To ensure that this research does not simply offer another "snapshot" set of findings, the timing of technology adoption and its impact are key elements in the adoption of LIST. While previous studies have touched on timing issues, the diffusion rate of these technologies is crucial. Rodgers

(1995) offers a framework to distinguish between early and late adopters and explains the impacts of different timing.

1. early adopters will differ from late adopters,
2. the perceived attributes of an innovation will affect its rate of adoption, and
3. that critical factors must be in-place to create the "S- shaped" curve.

The points presented provide a solid foundation for testing the effects of implementing various LIST, ERP, SEC, and other IS factors on logistics areas, including integration. The existing articles in the literature assist in identifying gaps in current knowledge and highlight a lack of examination on the impact of the latest SEC and ERP technologies. They also emphasize the importance of evaluating the timing and diffusion impacts. Prior research outlines specific objectives for this study, including identifying the impact of SEC and ERP on LIST, assessing how diffusion affects early and late adopters, and providing an up-to-date analysis of data usage.

To achieve these goals and gather accurate and generalize data, a pool of potential respondents was created from two organizations: the Council of Logistics Management (CALM) and the attendee list from the Distribution Computer Expo (DCE). Both the CALM membership and DCE lists were limited to LIST/COMICS managers and users. This screening process yielded a group of highly skilled LIST professionals working in logistics organizations. The aim was to reach a substantial number of LIST personnel working in logistics organizations in the United States and Canada.

The most suitable method for collecting data, based on the objectives, was determined to be a traditional mail survey with follow-up mailings (Dolman, 1978). To create the survey

instrument, previous studies were used as a basis and a pre-test was conducted. The final questionnaire consisted of an eight-page booklet containing 160 items that explored various aspects such as current LIST systems, data collection methods, use of SEC and ERP, demographic information, and other related questions. Since this study was longitudinal in nature, only one page out of the eight was modified from previous studies. To ensure its validity, the "current topics" page was pre-tested by fifteen CALM professionals.

After making some minor modifications, the final instrument was created. Consultants, pals, carriers, and academics were also eliminated from the overall lists in order to further narrow it down. The final list combined CALM and DCE, resulting in a total of 1949 potential informants. Out of the surveys that were sent out, 265 were completed and returned, resulting in a response rate of 13.59% once the undeliverable surveys were excluded from the sample. This response rate seems acceptable considering that it is a lengthy questionnaire being conducted during a time when traditional mail surveys tend to have lower response rates. Additionally, two tests were conducted to determine if there was any bias in the responses, but no significant differences were found between respondents and non-respondents.

The initial evaluation examined the public information about the company's demographics (Retune and Langley, 2001), while the subsequent analysis compared respondents from earlier and later periods (Lambert et al., 1978). The research methodology facilitated an assessment of both the integration of LIST and the longitudinal study of LIST. Additionally, it collected data on emerging aspects affecting LIST and different areas within the business organization. With a substantial number of participants,

the dataset encompassed a wide range of businesses, industries, and company sizes.

The concern was that a significant number of respondents came from the manufacturing sector. To determine if this group influenced the overall data, a simple T-test was conducted comparing manufacturers to other respondents. The results showed no statistically significant differences across over twenty randomly selected variables. Overall, the average survey respondent was a large manufacturing company that specialized in consumer goods such as durables, food products, textiles, etc. These companies typically used a centralized approach for supply chain management and logistics, and their central office served as the primary location.

In previous surveys, respondents were asked to state the level of logistics integration within their organization. They were first given a description of integrated logistics systems, followed by a question asking for their opinion on the nature of the integrated logistics concept in their firm. The respondents were given the option to choose between different responses.

1. not been recognized,
2. been recognized but the decision was made not to implement it,
3. been recognized and adopted but not successfully implemented,
4. been adopted and successfully implemented.

The respondents were fairly evenly distributed between the four choices, with each response ranging from 19% to 32%. The most common response was that the organization had considered but not adopted the integrated logistics concept. Fig. 1 shows the overall results for this question. [pick] I [pick] I Full-size image (K) Fig. 1 . Integrate logistics systems. View Within Article Surprisingly, this finding has remained unchanged compared to previous research by Gusting and Gusting (Retune et al., 2001).

Despite the growth of logistics knowledge and LIST in the industry, it was expected that more firms would have progressed towards full integration.

The findings revealed that companies are at different stages of logistics integration. This question updated the previous findings on the levels of LIST integration and collected the current level. However, this only represents a portion of the overall findings as it does not address the timing of integration across firms. Along with the level of logistics integration, another aspect of the research is to determine the impacts of SEC and ERP on integration. The initial part of this section discusses the utilization of different areas of SEC.

The text below evaluates the relationships between LIST and SEC. The respondents reported a high usage of SEC, which was subdivided into four categories: sales through SEC, purchasing with SEC, use of an intranet, and customer access to an extranet. The findings showed that companies reported high use in one area of SEC but had little or no plans to use another portion. Fig. 2 presents the level of SEC usage by the various categories. Intriguingly, intranet-based systems were the most widely adopted SEC application, with over 60% of surveyed firms reporting successful implementations. In contrast, only 25% of firms had successfully implemented Internet-based sales applications. Additionally, a smaller percentage of firms (12%) reported successful implementations of Internet-based purchasing systems, and only 11% had successfully implemented extranet-based supply chain coordination and planning systems.

The utilization of SEC reveals a pattern in the adoption process followed by companies. Initially, they establish an internal intranet, which is later supplemented by the creation of sales Internet page(s). The last

two aspects seem to vary among organizations. According to diffusion theory, the intranet stage reaches a point where it gains momentum and enters the S-shaped portion of the process. On the other hand, the lack of unanimous acceptance in the final two areas distinguishes between early and late adopters.

Within the context of SEC adoption, a comparison was made between the level of logistics integration and SEC implementation. The examination yielded intriguing results. The analysis considered three areas: (1) intranet-based communication, (2) extranet-based supply chain ordination, and (3) a full-size table (ASK). Upon closer inspection, it became evident that companies that have effectively implemented integrated logistics are highly likely to have also implemented these SEC applications.

The implementation of Internet-based sales applications seems to be unrelated to the level of logistics integration. This lack of correlation is likely due to the high number of manufacturers within the respondent LOL. During data collection, many manufacturing firms were still in the process of developing business-to-business websites. This is evident from the significant percentage of companies that reported being in the implementation phase of Internet-based sales.

The second important point addresses the failure of numerous dot. Com companies in meeting their online commitments due to insufficient logistics support. Companies that combine their logistics and SEC (Supply Chain Execution) are expected to achieve greater success in the market. The correlation between logistics integration and information systems further strengthens this notion. Furthermore, it is evident that the diffusion of SEC technology has slowed down outside of the intranet. Many companies have not progressed beyond implementing basic SEC. The association between logistics integration and the utilization of a higher number of

LIST (Logistics Information Systems and Tools) tools may also hold true in this case.

A successful company that incorporates logistics integration will be more advanced in LIST and SEC. It can be assumed that companies with advanced LIST are more likely to progress through the SEC phases quickly, given that LIST predates SEC. However, the opposite may also hold true, presenting a chance for future testing. Overall, the relationship between SEC and logistics integration offers intriguing findings and opportunities for organizations. The results serve as a benchmark for companies to compare their operations against.

In addition, advanced companies have integrated their logistics operations with other parts of the firm, including SEC. However, this only focuses on one aspect of the research, which is the integration of SEC and logistics. After examining the effects of SEC, a major new area of information systems, the next step was to investigate any potential impacts that the relationship between logistics integration and ERP may have. The questionnaire required respondents to address various issues regarding ERP. Each company indicated their current status: whether they had implemented ERP, were in the process of doing so, or had no plans to implement it.

The level of ERP usage is presented in Fig. 3. [pick] I Full-size image (K) Fig. 3. Companies' use of ERP. The majority of respondents used ERP in some capacity, with approximately 73% of companies utilizing a portion of an ERP system. Additionally, around 20% were in the process of implementing ERP, while only 7% had no plan or were uncertain. Thus, the data suggests that ERP is increasingly being adopted as a computerized data handling process

in American corporations, with over 92% of companies either using or implementing it. Given its widespread usage, the key question now becomes the specific areas in which ERP is being used.

The companies needed to determine which business areas or functions were utilizing ERP, such as financial control, MR., inventory management, etc. Similar to SEC, there was a high overall usage of ERP with a significant variation in particular application areas. The respondents reported a diverse range of results in the four logistics-based areas of ERP, as shown in Fig. 4. [pick] I Full-size image (ASK) Fig. 4. ERP subsystem plans. The relationship between logistics integration and the implementation of key ERP components is summarized in Table 3.

Table 3 displays the findings of the Chi-square test, which compared the utilization and planned utilization of all ERP components with the firm's level of integration. The test examined the correlation between the reported stage of logistics integration and the present adoption level of ERP subsystems. Five out of the six major ERP components showed significant differences. Advanced logistics firms that have successfully implemented the integrated logistics concept are more inclined to have implemented ERP components for logistics planning, production scheduling, financial management, demand forecasting, and human resources.

Interestingly, the results indicate that incorporating an inventory management feature does not depend on the extent of logistics integration. This finding can be explained by the fact that nearly all companies (97%) surveyed already have inventory management systems in place. [pick] Table 3. Logistics integration and ERP implementation Full-size table (K) Similarly to SEC, there seem to be various connections between the degree of logistics integration and ERP

implementation.

The relationship between logistics integration and implementation of various ERP components is strong. Companies that have progressed further in logistics integration are more likely to have implemented different ERP products. Even inventory management, which is currently measured and managed by 98% of the respondent companies, is related to ERP. This suggests that adopting ERP allows companies to integrate logistics areas with other business functions such as accounting and HARM (see Table 3).

Businesses that integrate logistics throughout the organization are more likely to implement an ERP product that integrates data from various areas. This means that companies considering integrating either ERP or logistics will have more success in adoption if they have implemented the other. Just like with the SEC relationship, it is assumed that logistics integration improves ERP implementation, assuming that logistics existed before ERP. Therefore, a company with an integrated logistics philosophy will have greater success in adopting an ERP package.

It could also be true that the opposite relationship exists. Additionally, the findings offer practitioners a chance to compare their companies to others. The widespread use of ERP systems is essential for many organizations. ERP packages are necessary in the fields of logistics and business. Companies should not only implement ERP but also determine which modules will provide the most benefits for their organization and supply chain partners.

To sum up, the research supports previous studies indicating that both SEC and ERP are increasingly being embraced as effective tools in the supply chain. However, it is observed that companies vary in their implementation levels and selectively adopt specific subsystems, likely due to their diverse nature (e.g., manufacturers, distributors, retailers). As a

result, most companies are expected to utilize a combination of SEC and ERP to oversee logistics operations in the near future. Ultimately, both SEC and ERP are closely tied to the degree of logistics integration across the organization.

The success of implementing the more current systems of ERP and SEC seems to be higher in companies that integrate logistics. According to initial research findings, there are several key areas that need further exploration. The first area is the interaction of logistics integration with other portions of Anonymous, 1998.