Aligning Supply Chain Logistics Costs via ERP Coordination

Author(s):  
Joseph R. Muscatello ◽  
Diane H. Parente ◽  
Matthew Swinarski

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.

2019 ◽  
Vol 17 (2) ◽  
pp. 99
Author(s):  
Hasnawati Zainal ◽  
Milan Oresky

<p class="Imar-Abstract">The objectives of this research are to see the influence of Enterprise Resource Planning (ERP) implementation and organizational capability toward Green Supply Chain Management (GSCM) practices. GSCM practices are seen through green purchasing, cooperation with customers, and investment recovery practices. ERP implementation is measured using integration, configuration, and adaptation of the organization information system. Meanwhile, organization capabilities are measured by information access, product innovation, and flexibilities.</p><p class="Imar-Abstract">This research uses a convenience sampling technique by distributing questioner 60 respondents. They are employees who work in different types of companies. The results showed that ERP implementation influences the practice of cooperation with customers, while ERP practices do not influence green purchasing and investment recovery practices.  Organizational capabilities also do not influence the practice of GSCM.</p>


2013 ◽  
Vol 10 (1) ◽  
pp. 63-88 ◽  
Author(s):  
Jongkyum Kim ◽  
Andreas I. Nicolaou ◽  
Miklos A. Vasarhelyi

ABSTRACT Prior research has shown that the implementation of ERP systems can significantly affect a firm's business operations and processes. However, scant research has been conducted on the relationship between ERP implementation and the timeliness of external audits, such as audit report lags. While some of the alleged benefits of ERP are closely related to removing impediments contributing to audit report lags, others argue that the complex mechanisms of ERP systems create greater complexity for control and audit. In this paper, we examine the relationship between ERP implementations and audit report lags. The test results indicate that overall, a firm's ERP implementation is negatively associated with audit report lag. However, this negative association is significant only at the fourth and fifth years after initial ERP implementation. These results imply that the use of ERP systems by client firms may help decrease the audit report lag, but it takes time for the full impact of the firms' accounting systems to be realized.


2011 ◽  
Vol 7 (4) ◽  
pp. 23-63 ◽  
Author(s):  
Payam Hanafizadeh ◽  
Ahad Zare Ravasan

Implementing Enterprise Resource Planning (ERP) systems is a complex, lengthy and expensive process which usually faces serious challenges and failures. Thus, it is necessary to perform a readiness assessment at the initial stage of an ERP implementation project to identify weakness areas which may encounter the project with failure. This paper proposes a new framework for assessing readiness of an organization to implement the ERP project on the basis of McKinsey 7S model using confirmatory factor analysis. Through this method, the construct of ERP readiness is proposed based on 7 dimensions namely “structure”, “strategy”, “systems”, “skills”, “style/culture”, “staff”, and “shared values/ superordinate goals”. Using the framework, the current situation of the organization can be determined and necessary changes can be made prior to system implementation. The proposed framework is then applied to 2 real Iranian banking cases and the advantages of the framework over available frameworks are illustrated.


2011 ◽  
pp. 1358-1378
Author(s):  
Joseph R. Muscatello ◽  
Diane H. Parente

In today’s intensely competitive marketplace, companies can benefit strategically and tactically from enterprise resource planning (ERP) systems, if implemented correctly. However, with failure rates estimated to be as high as 50% of all ERP implementations, companies can be negatively impacted by a poorly performing ERP system. The research on ERP has focused on events leading to the selection, evaluation, and implementation of the ERP system. The intent of this research is to identify new or lightly researched theories regarding the difficulties of ERP implementations that can help practitioners successfully manage ERP implementations by performing a post-ERP implementation examination of eight corporations. We examine operations management (OM) literature rather than information systems (IS) literature in order to provide IS readers with an alternative yet valuable analysis. Further, we purposely avoid well-established findings by performing a large literature review. This article is based on a qualitative research design using case-study methodology. The propositions derived from the case studies form solid insight into the considerations that may influence the success of an ERP system.


Author(s):  
Mahmood Ali ◽  
Ying Xie ◽  
Joanna Cullinane

This study investigates the implementation of Enterprise Resource Planning (ERP) systems in Small and Medium-Sized Enterprises (SMEs) and the role played by certain Critical Success Factors (CSFs) in implementation. Based on primary data collected, the relationship between the variables of time, cost, and achievement is formulated for each CSF. A simulation model based Decision Support Systems (DSS) is developed to assist resource allocations in ERP implementation, such as time and budget allocated to address each CSF. The DSS also facilitates making decisions to achieve more desired performance, measured by higher achievement, lower cost, and shorter implementation time. By drawing upon this model, the authors forecast how SME can better utilise and prioritise different CSFs and resources by choosing the best implementation strategy before real life implementation, thus saving time and money.


2014 ◽  
Vol 37 (2) ◽  
pp. 186-206 ◽  
Author(s):  
Pairin Katerattanakul ◽  
James J. Lee ◽  
Soongoo Hong

Purpose – This study is an exploratory study aiming to explore whether different groups of manufacturing firms with similar business characteristics and enterprise resource planning (ERP) implementation approaches would experience different business outcomes from ERP implementation. The paper aims to discuss these issues. Design/methodology/approach – Cluster analysis with data collected from 256 Korean manufacturing firms was employed to identify groups of manufacturing companies having similar business characteristics and adopting similar ERP implementation approaches. Then, the differences in business outcomes from implementing ERP systems among these groups of companies were examined. Findings – Company size and production approaches are useful variables for grouping manufacturing firms into clusters of companies with similar characteristics. Additionally, large manufacturing firms with make-to-order production approach have significantly higher perceived benefits from implementing ERP systems regarding external coordination and competitive impact than other firms do. Research limitations/implications – This study was conducted in only one industry of one country and used the data collected by self-reporting instrument. Thus, further studies conducted in other industries and/or other countries and using more objective measures would allow more generalizability of the findings of this study. It would also be interesting to investigate the effects of the logistics practices adopted by small manufacturing firms even though these practices may be more suitable for large manufacturing firms. Originality/value – This study contributes to the literatures on benefits obtained from implementing ERP systems as none of the previous studies has focused on the relationship among business characteristics, ERP implementation approaches, and business outcomes from ERP implementation.


Author(s):  
Payam Hanafizadeh ◽  
Ahad Zare Ravasan

Implementing Enterprise Resource Planning (ERP) systems is a complex, lengthy and expensive process which usually faces serious challenges and failures. Thus, it is necessary to perform a readiness assessment at the initial stage of an ERP implementation project to identify weakness areas which may encounter the project with failure. This paper proposes a new framework for assessing readiness of an organization to implement the ERP project on the basis of McKinsey 7S model using confirmatory factor analysis. Through this method, the construct of ERP readiness is proposed based on 7 dimensions namely “structure”, “strategy”, “systems”, “skills”, “style/culture”, “staff”, and “shared values/ superordinate goals”. Using the framework, the current situation of the organization can be determined and necessary changes can be made prior to system implementation. The proposed framework is then applied to 2 real Iranian banking cases and the advantages of the framework over available frameworks are illustrated.


2017 ◽  
Vol 9 (1) ◽  
pp. 15
Author(s):  
Windia Fita Rini ◽  
Dewi Febriani

Abstract. The purpose of this study was to determine the impact of moderation implementation of Enterprise Resource Planning (ERP) on the relationship the firm’s performance to firm value. The sample used is a firm listed on the Indonesia Stock Exchange that implement ERP. This study uses a panel regression statistical method. The results of this study that are profitability, firm size, investment opportunities, and the interaction of ERP and profitability significantly influence the market price of the equity. The conclusion of this study are companies that implement ERP under the term of 4 years have improved performance compared to companies that do not implement ERP, but the ERP implementation in the study had an impact on the impairment of the company's short-term post ERP implementation.Keywords: ERP; firm value; profitability; investment Abstrak. Tujuan dari penelitian ini adalah untuk membuktikan secara empiris dampak dari implementasi Enterprise Resource Planning atas hubungan kinerja perusahaan (profitabilitas) terhadap nilai perusahaan. Sample yang digunakan adalah perusahaan yang terdaftar di Bursa Efek Indonesia yang sudah menerapkan ERP. Penelitian ini menggunakan metode regresi berganda dengan data panel. Hasil dari penelitian membuktikan bahwa profitabilitas, ukuran perusahaan dan peluang investasi sebagai variabel kontrol, dan interaksi antara ERP dengan profitabilitas berpengaruh secara signifikan terhadap nilai perusahaan dengan menggunakan nilai pasar saham. Kesimpulan dari penelitian ini adalah perusahaan yang menerapkan ERP memiliki kinerja yang lebih baik dibandingkan dengan sebelum menerapkan ERP.Kata Kunci: ERP; kinerja perusahaan; profitabilitas; investasi


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