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means of communication such as telephone, mail, fax machines or computer
systems. The impact of information technology on order management is enormous
and diverse. The advent of widely available and cheap media has virtually
revolutionized order management.
Order processing means allocating inventory and responsibilities in a way that
satisfies customer needs. The traditional approach is to assign to each customer a
certain amount of available inventory or planned production in accordance with
predetermined priorities. Modern order processing systems based on highly
developed technologies allow us to maintain two-way communication with
consumers and negotiate the terms of orders ahead of time, so that they fit into the
framework established by the planned parameters of logistics activities.
In the field of distribution, information flows serve to facilitate and coordinate
the work of individual capacities (departments) of logistics. The main task of any
division of the logistics system is to provide such a quantitative and qualitative
composition of materials or products, which is necessary for the execution of an
order. The most important thing here is to deliver the desired assortment of
products at the right time, with minimal duplication and minimal overhead.
Inventory management is reduced to using incoming information to strictly
implement logistics plans. With the help of available labor resources and
information technology, stocks are allocated and regulated in such a way as to
meet the planned needs for them. The task of inventory management is to ensure
that the logistics system as a whole does not lack the resources necessary to
operate as planned.
In the field of transportation and cargo handling, information serves as a tool
for managing the delivery of stocks to their destination. The efficiency of transport
depends on such coordination of orders, which would ensure the full utilization of
transport capacities. In addition, the required vehicles must be in the right place at
the right time. Finally, since the transfer of ownership often occurs at the final
stage of transportation, the goods being transported must be accompanied by
proper documentation.
Procurement requires information suitable for preparing, changing or
canceling a purchase order with full agreement with suppliers. Procurement
information is very similar to that used in order processing. In both cases, the
exchange of information plays the role of an auxiliary means, facilitating those
operations that connect consumers and suppliers.
The main purpose of the operational flow of information is to support the
integration of activities in the areas of physical distribution, logistics of production
and supply. While the planning / coordination flow provides information about the
planned parameters of the activity, the operational flow is needed to manage day-
to-day work. The full realization of the company's competence in logistics requires
managers to achieve certain target standards related to both information flow and
inventory flow.
The prerequisites for an integrated logistics approach are: technological
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