Logistic management Essay Example | Topics and Well Written Essays - 500 words

Logistic management - Essay Example However, the main questions are whether enterprise resource planning is an advantage or a hindrance to organizations and whether organizations are making implementations that accommodate the software. The enterprise resource planning software may be of significant help to organizations who are intending or already using it. First, communication within and outside the organizations significantly increases (Bowersox, Closs & Cooper, 2007). This means that logistics information from one department to another move swiftly. In addition, information moving in or out the company is moving at a faster pace. For instance, a technology company manufacturing technological products will have an increase in the movement of information. In this case, the manufacturing department can communicate with sales department at the shortest time possible regarding customers orders. On the other hand, the organizations can communicate with their supplies in time to deliver raw materials in time for production. As a result, due to speedy movement of information in the organization, the second benefit of enterprise resource planning is that it reduces wastages in inventory leading to high profitability levels in the company (Bowersox, Closs & Cooper, 2007). An excellent example is that of the technology company. In the past, technology companies were making products based on future predictions on sales. This was for the purposes of ensuring just in time deliveries to their customers. However, technology is changing at a quick rate meaning that production for future use will lead to obsolete products in the market resulting to wastage. Therefore, because of enterprise resource planning, logistic management is becoming easier with companies only producing in accordance with customer orders. In this case, there is zero tolerance on wastages and reduction of warehousing costs