Information technology can play a key role in monitoring current distribution arrangements. Goods
traveling through a system can be closely tracked along the entire distribution channel. Improved tracking reduces
shipments to wrong locations and misplaced goods, and assists in effective inventory management, thus saving time
and money.
Information technology can also be used to change or radically restructure the distribution network
so that goods get to market quicker, and costs are reduced. An analysis of the business process may reveal
components or functions that are redundant or add little value to the business. In addition, an analysis of the
latest technology may suggest ways in which technology can be used to provide information to key decision makers.
Recent emphasis in manufacturing is on Just-In-Time manufacturing, which requires up to date information
on the location and delivery of components. In addition, emphasis is turning from mass manufacturing to mass
customization. Products are target marketed and manufactured for small customer niches. This requires smaller run
sizes, as well as a tight link between manufacturing and marketing.
Management Strategies has worked with several leading companies to examine their manufacturing
operations and distribution networks, and to apply information technology solutions to improve overall system
performance.