Conquer the CLTD Challenge 2026 – Navigate Your Path to Logistics Success!

Information utility plays a crucial role in logistics and supply chain management as it refers to the ability to effectively gather, process, and disseminate information that supports decision-making and supply chain activities. In this context, the function of information utility primarily allows customers to communicate their requirements to suppliers.

When customers have access to accurate and timely information, they can express their needs clearly, including specifics about quantities, delivery timelines, quality standards, and other pertinent details. This clear communication facilitates a better understanding between customers and suppliers, ensuring that suppliers can align their production and distribution processes to meet those demands efficiently.

The other options relate to different aspects of logistics and supply chain management but do not directly encapsulate the core functionality of information utility in this context. For example, enhancing product desirability relates more to marketing strategies, while calculating total cost of ownership and managing inventory levels pertain to financial analysis and operational functions, respectively. None of these fully capture the direct role of information utility in improving communication between customers and suppliers.