ERP and SCM - the link
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This document discusses how enterprise resource planning (ERP) systems are indispensable to supply chain management (SCM). It first provides background on ERP and SCM. It then presents a research model linking ERP benefits to the operational, planning and control, and behavioral processes of SCM. The document describes research analyzing the relationship between ERP benefits and SCM competencies. It finds that ERP benefits lead to improved SCM competencies, especially for operational, managerial and strategic benefits. Most respondents believe developing an ERP system before an SCM system is better.
ERP and SCM - the link
- 1. WHY are erp systems indispensable to scm ?European Journal of Operational ResearchSourabh , Vignesh , Pradeep
- 2. IntroductionEnterprise Resource Planning:Integral ComponentIndispensableBack bone
- 3. Literature ReviewSupply chain managementCompetencies of SCMEnterprise resource planningERP benefitsImpact of ERP on SCM
- 4. Research ModelERP benefits and operational process of SCMERP benefits and the planning and control process of SCMERP benefits and behavioral process of SCM
- 5. Research DesignInstrument design and refinementData collectionBest practices of SCM
- 6. ANALYSES OF RESULTSOperationalOperational ProcessManagerialPlanning and Control ProcessStrategicIT InfraBehavioral ProcessOrganisationalERP BENEFITSSCM COMPETENCIES
- 7. Taiwanese it industryMost Taiwanese managers have been educated in US and have obtained first hand experience of using ERP systems .Smaller IT companies operate in a satellite type network structure around the larger IT companies and act as their suppliers .
- 8. Taiwanese it industryLarge IT firms have used ERP to have internal process integration and for collaborative supply chain partnershipsSmall IT firms have also adopted ERP systems which synchronise with and respond to the demands from ERP systems of large IT firms .
- 9. Effectiveness of system adoptionFirms with poor IS/ES/ERP will receive more benefits from ERP adoptionERP may be made up of independent blocks , thus allowing customisation .Large companies report better financial measures while small companies report better logistics and manufacturing performance.
- 10. CONclusionERP benefits does lead to improved SCM competencies ; more so in the case of operational , managerial and strategic ERP benefits .It is believed by 80% of respondents that developing an ERP system before developing an SCM system is better .