Aligning Supply Chain Logistics Costs via ERP Coordination

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.