An Information System Design Product Theory for Integrated Order, Transportation and Warehouse Management Systems

Globalization, lead time reduction and cost pressures, and other factors make it nontrivial for most companies to devise and manage effective logistics services to meet client requirements. They are better off using the services of specialized third party logistics service providers. These providers compete fiercely and need to develop and improve their services continuously to gain competitive advantage. Integrating the logistics process for improving communication and coordination is the most feasible way for third party logistics providers to deal with these pressures. Yet, the extant literature provides little theoretical guidance for integrating the logistics life-cycle, including ordering, transportation, and warehousing. This paper develops an Information System Design Product Theory for the class of integrated Order, Transportation and Warehouse Management Systems based on a case study and a literature review. The theory helps clients and service providers to acquire and design information systems for designing, managing and controlling transparent and seamless logistics processes that improve service effectiveness.