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Improving Logistics Costs Through ERP Alignment
Abstract
This paper examines the alignment success factors necessary to improve logistics cost when implementing an ERP system taking a work system theoretical perspective. Organizations attempting to decrease logistics costs via an ERP implementation must consider the processes and activities involved in aligning participants, information, technology, and business process in these ERP implementations. We used 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. This research has provided more insight into the practice of ERP implementations and has reemphasized the need to judge ERP success relative to impact on firm performance.
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