Case Study 5 - Strategic Solutions Inc.

1. Identify the characteristics of an ideal information system for this logistics

environment. Gather information on both EDI and TMS, and compare their suitability
for this environment.
2.
The ideal logistics IT system should have these characteristics:
 Simplicity is essential and provides relevant and important information for easier
management.
 Reliability is also very high, the system can provide real-time information to customers
within the customer base, so its relevance is important, and the information transmitted
must be correct and available to both parties.
 It should be generic enough to provide a one-stop solution for both parties.
Finally, it should be cost effective, the profit margin of the logistics business is small,
so cannot spend too much on the system.
EDI- electronic data interchange is a technology that transfers data from one system to
another through computers in a specific format. For the logistics industry, EDI helps greatly
reduce document load. The main advantage is to send bills electronically.
TMS- transport management system is part of supply chain management system, in this
case it is part of ERP- enterprise resource planning module. The system helps register and
identify incoming and outgoing goods and analyzes them to get the most efficient and cost-
effective logistics solution.

3. Help Scott decide if he should invest in either EDI or TMS, or both. Is there another
type of system that you would believe would be better? What kind of benefits,
including performance and customer satisfaction, can Scott expect by making these
proposed changes to the business process?
4.
Scoot should implement an EDI system within the company to meet his needs. This
will help minimize his costs. Compared with TMS, Scott can obtain a fast, concise and
reliable system at a lower cost. He may spend more money on a server that can process data
perfectly, and invest in some ERP modules to help identify the most efficient and cost-
effective route to make a TMS.
This will allow Scott to provide real-time shipping information to his customers, which
will increase satisfaction. And the documentation workload will be reduced. By reducing the
number of paper documents, he can increase efficiency and reduce costs by deploying labor
to other jobs.

5. What are the key considerations for Scott when deciding on the best possible systems
to implement?
6.
Scott needs a business information system and thinks too little about making decisions.
 The system must be able to provide a single point of contact.
 The system must have the function of updating data in real time

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  The system must be reliable, efficient and cost-effective.
 The system must be easy to use and easy to learn.
 The system consumes the least resources.

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