Explain the role of information systems in the logistics of transport.

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To understand the importance of information systems in transport, it is necessary to first establish the importance of transport logistics itself. Transport is of fundamental importance to most companies. The costs of transport are often substantial, and additional factors such as applicable legal and regulatory restrictions on transport of goods directly impact the ability of a company to deliver goods to customers.

An information system allows a company to remain aware of the environment which their transport is subject to. The choice of mode of transportation, information about loads such as manifests, and even the most fundamental concerns such as who goods are being transported to require strict management, and thus the use of a robust information system. Information systems represent a way to collect and retrieve vital data in an inherently scalable way. Such systems also afford customers interactive features such as package tracking, providing real-time updates on transport schedules.

Information systems provide businesses with several obvious advantages including increased efficiency of transport, improved financial realizations, the possibility of remote monitoring of transport, and an increased capacity to adapt to changing conditions.

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