Effectiveness of Systems Applications and Products (SAP) Business One in the Inventory Management of CPAC Monier Philippines Inc.

Abstract

The paper studied the level of effectiveness of using accounting system in inventory management of CPAC Monier Phils. Inc. This specifically answer the significant relationship on the level of effectiveness of using an accounting system based on the six factors of business productivity framework and five features of effective inventory management system when grouped according to their profile. The six factors are collaboration, business insight, flexibility, usability, familiarity and transactional efficiency while the five features are accuracy of in-stocks, availability of timely report, inventory segmentation, cost optimization and accurate forecasting. Data gathering was done through survey questionnaire and available inventory reports. Data were analyzed thru descriptive statistics, JMP statistical tool and Microsoft Excel. Frequency, percentage, weighted mean and chi-square test. Effectiveness was measured into three levels base on the perception of the user: highly effective, effective and not effective. The levels of the system effectiveness was then associated to the business productivity measures in terms of its six factors. Chi-square test was used in determining the relationship between respondents profile and features of an effective inventory management system. Results of this study bear significance in the context of the organization’s continuous effort to decrease the On-time In-full Invoice Complete rate through effective inventory management.

The findings of the study implied that using accounting system in inventory management of CPAC Monier Phils. Inc is effective. This study suggests the following, thorough system initialization, regular trainings for all SAP users, reliable back-ups for the system, good internet reception and customize report generation.