Reliant Logistics Institute

Role of Logistics


Logistics is an important element of competitiveness. Its commercial deals with other countries are increasingly dependent on its logistical organization. Indeed, any policy of export promotion cannot give the expected results if the logistics costs remain very high. These costs do not affect only the competitiveness of the local exporters, but they are also on the base of the relocation decisions of the MNCs trying to move outside of their original countries. Thus, the logistics influences all the economy and seems to be a powerful determinant of the FDI in the host countries. A well-organized logistic function must be necessarily supported by the new information and communication technologies (ICTs) becoming indispensable for its functioning. They represent a crucial tool for command and control which helps companies to reduce the costs and increase the productivity and especially to have the best information at the right time for the good actor. This opinion demonstrates that the accelerated development of cooperative relations between a supplier and his customer, taking into consideration the information management in real-time, requires strong expertise in the field of the ICTs. But, he underlines at the same time the risk represented by the speed of the innovations and the size of the budgets provided for investment in the domain. Following these technological evolutions is an obligation, not a choice that obliges the receiving countries to provide constant investments in the area. ICTs can be considered as the first support of the functioning of the logistics. They provide an innovative solution for better management of the supply chain and bring many advantages in terms of safety, service quality and control. Also, they facilitate the exchange of information and data between different actors and accelerate the achievement of operational tasks. In this case, ICTs will develop the joint work of various logistics troupes. Indeed, they facilitate the partnership relations through better coordination of actors and stronger engagement of different parties in the relationship. ICTs also improve collaboration through the implementation of joint activities, regardless of hierarchical organizations and affiliations with such services or such divisions. Strong expertise in the field of ICTs is reflected in a stronger relationship between the supplier and its customer. Supervision and improvement of the quality of the chain connecting the producer to the consumer help companies to achieve “zero defects” for products and services. Indeed, starting from a simple relationship between a seller and a buyer, it becomes possible to share complete systems of exchanges at the level of all the logistics functions, from the engineering to the distribution through inventory management. The strong integration of ICTs in the trade of goods and services between the various links in the supply chain increases the role of the Electronic Data Interchange (EDI) which increases rapidly.


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