Considering non-supported information on logistics costs when self-developing ERP-systems : A case study in a manufacturing organization

Abstract: Logistics and Information System Development are hot topics in today’s business world. Although many studies have been conducted on these two areas, information about logistics costs is still lacking in many companies. Information Systems are tools that, if properly developed, aid organizations in processing data and providing information with speed, accuracy and quality to its intended users. A lacking in the relation between the business world and the Information System’s world was apparent in a studied company’s self-developed Enterprise Resource Planning system, where information about logistics costs was neglected. A case study made in this same studied company, show the importance of seven different logistics costs types and its related information. Using the analysis of the material gathered from both literary work and this case study, it was determined what information about logistics costs is neglected by the manufacturing organization’s self-developed ERP-system. Finally, it was concluded what information on these logistics costs that should be considered by manufacturing organizations for facilitating the understanding of total product cost of specific products and which may not be supported by these systems.