Information and Technology Requirements

Information and technology is a critical driver for successfully handling operations in a distribution channel. Short term forecasts help in determining labor and space requirements over a short term planning horizon where on the other hand long term forecasts are used for capacity planning. Information technology is critical in achieving efficient performance. Warehouse Management Systems (WMS) direct where products should be stored and provide the necessary functionality for the completion and optimization of receiving, storing, and shipping operations, additional functionality may permit the use of hand held devices and bar coding to optimize efficiency and reduce errors. Most WMS systems also include inventory management functionality that permits the distribution channels to have real time information on the inventory status of all items in the distribution channels.