Sample Essay

Question 3: What role will information systems play as retailers seek to reduce inventories by receiving smaller, yet more frequent and accurate shipments? What are the implications for the manufacturers and logistics providers who serve the retailers?

Answer:

Information systems play a very important role in efficient delivery of products to retailers as these systems keep track of all the shipment schedules, levels of inventory shipped to various stores and levels of inventory during specific periods of time. Logistic companies and manufacturers will be able to provide exact information to retailers concerning the demand of products at various locations and in different periods of time. The retailers can make better decisions regarding purchases of inventory from manufacturers based on the information provided by the systems implemented by logistic companies and manufacturers. Although these systems increase efficiency and provide useful information there main implication on manufacturers and logistic services is their high cost. The management of these information systems though proves quite useful but high costs may eventually force manufacturers to increase prices (Bozarth, 2006).

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