Logistics Improvement by Investment in Information Technology Using System Dynamics

Abstract

In this era of globalization, adoption of information technology (IT) is one of the critical contributing factors of logistics companies' competitiveness and growth. This chapter investigates the investment in IT by an Indian-based logistics company on the logistics performance. Technologies like RFID, EDI, GPS/GIS, and ERP are chosen for improving processes like tracking and tracing, planning and forecasting, transportation automation, coordination with suppliers and customers, and decision optimization. Simulations are carried out using system dynamics modelling. The model is validated and sensitivity analysis is performed. Scenarios are generated under optimistic and pessimistic conditions.