Aligning Supply Chain Logistics Costs via ERP Coordination

Abstract

Enterprise resource planning (ERP) systems address the problem of disparate information in an organization and coordinates mechanisms to eliminate supply chain sub-optimization. Logistics costs are a substantial part of an operation and this research provides insights into the relationship between ERP implementations and logistics costs. The research uses a two-step approach, conducting a confirmatory factor analysis (CFA) to assess the psychometric properties of our measures and then conducting an independent sample t-test between two groups, one which experienced decreased logistic costs and the second which experienced the same or increasing logistic costs. By examining the effects of ERP implementations on a specific area of the firm, logistics costs, this research has provided insight into the areas of ERP implementation and firm impact.

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