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Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Improving Logistics Costs Through ERP Alignment

Improving Logistics Costs Through ERP Alignment
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Author(s): Joseph R. Muscatello (Kent State University, USA), Diane H. Parente (Penn State, Erie, USA)and Matthew Swinarski (Penn State, Erie, USA)
Copyright: 2017
Pages: 19
Source title: Enterprise Information Systems and the Digitalization of Business Functions
Source Author(s)/Editor(s): Madjid Tavana (La Salle University, USA)
DOI: 10.4018/978-1-5225-2382-6.ch003


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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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