Final answer:
Information technology enhances logistics and physical distribution efficiency while reducing costs, through technology advancement, strategic locations, improved telecommunications, and international trade agreements.
Step-by-step explanation:
Information technology plays a critical role in logistics and physical distribution, which includes the storage, handling, and transporting of goods. By leveraging advancements in technology, companies can improve operational efficiency and simultaneously reduce costs. The integration of innovative transport methods and vehicles, well-defined policies, and regard for labor rights contribute to a robust supply chain that is capable of persisting through national emergencies. Sharing new technologies with developing countries aids in the circulation of faster and more refined products on the market. Moreover, strategic location choices such as sites near uncrowded freeways or with access to rail or water transport can make the movement of workers and materials more cost-effective.
Furthermore, improvements in telecommunications have facilitated the management of long-distance production and sales, enabling products that can exist in the form of information, like computer software and financial advice, to be transported over computer networks at lower costs. Globalization, bolstered by international agreements and treaties, has also been instrumental in reducing transportation costs and encouraging greater trade. Collectively, these advancements help companies coordinate activities across their supply chain more effectively.