To control a process, you need information about its state. When the
process changes faster, the information has to be gathered more often, or
decisions will be based on obsolete facts.
If you increase the speed of information, you reduce stocks
Modern information technology allows you to see the state of the supply
chain change in real time. Instead of uncertain estimates and obsolete
figures, we can base ourselves on the reality of this moment. This reduces
uncertainty and drastically affects our need for stocks.
If you increase the speed of information, you increase the flow rate
When information can be had in real time, only the physical handling
limits the speed of the flow of material. Therefore, logistics is as much
about flows of information as flows of goods.
Correct information is quick information
The speed of information affects its reliability. Logistical information
is correct if it always shows the situation right now; in other words, the
information is available in real time.
