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Barriers, effects, and benefits of implementing IT systems in logistics – part 1

Investment decisions determine the long-term functioning of an enterprise in the market. These decisions should be planned and based on a simple “input –
output” economic calculation. Such decisions include, among others, the implementation of an IT system, which must be treated in the company as a business venture that improves operational effectiveness and strengthens strategy, rather than as an IT process.
Problems resulting from the implementation of IT systems
Before we proceed with the purchase and implementation, we must consider:
• which computerization variant to choose
• to what extent we will implement the IT system
• whether we are able to prepare the company for computerization on time
• whether we are able to overcome all the difficulties of computerization.
Answering the first question, we must realize:
• whether the IT system will bring specific benefits to the company
• in which enterprise systems to apply it (HR, finance, logistics, production, procurement, marketing, etc.)
• whether to build our own computer network and then define the requirements, or use a publicly available one, and under what conditions.
The second issue is a continuation of the first. If we have decided, for example, to implement a logistics system in the company, we still need to determine in which subsystem or subsystems of the enterprise. Will computerization be introduced in all logistics subsystems, such as:
• procurement
• production
• distribution
• transport
• warehouse management
• waste management
• disposal, etc.
or only in some, or perhaps in the entire logistics chain, which includes not only the internal processes of the enterprise but also its environment. Another important problem is whether we are able to prepare the executive system (employees, machines and equipment, infrastructure, etc.) and the management system (information subsystem: i.e., collecting, transmitting, storing, and processing data) for the implementation of the IT system. The scope of changes should be carried out in 4 groups.
The article comes from the magazine “Logistyka”, No. 3/2006.

L2006-3s65.pdf