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Why are enterprise resource planning systems indispensable to supply chain management?

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  • Su, Yi-fen
  • Yang, Chyan

Abstract

Supply chain design is becoming a core competency, and the enterprise resource planning (ERP) system is expected to be an integral component of supply chain management (SCM). Installing an ERP system is, however, expensive and risky. IT managers must decide how to use their limited resources and invest in the right product. Can an ERP system directly improve SCM competency? This study proposes a conceptual framework featuring the ERP benefits and SCM competencies, and examines the impacts of the former on the latter. The results confirm the operational, managerial, and strategic benefits of ERP for the SCM competencies, but not the IT infrastructure and organizational benefits as significant predictors of them. Moreover, more than 80% of respondents think it necessary to first adopt an ERP system as the backbone of company operations before deploying other enterprise systems (ES), such as the SCM system.

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  • Su, Yi-fen & Yang, Chyan, 2010. "Why are enterprise resource planning systems indispensable to supply chain management?," European Journal of Operational Research, Elsevier, vol. 203(1), pages 81-94, May.
    • Handle: RePEc:eee:ejores:v:203:y:2010:i:1:p:81-94
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    Cited by:

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    2. Han, Jeong Hugh & Wang, Yingli & Naim, Mohamed, 2017. "Reconceptualization of information technology flexibility for supply chain management: An empirical study," International Journal of Production Economics, Elsevier, vol. 187(C), pages 196-215.
    3. Marina Hassan & Marzanah A. Jabar & Fatimah Sidi & Yusmadi Yah Jusoh & Salfarina Abdullah, 2018. "Critical Success Factors And Their Influence In Erp Implementation Success Of Organizational Perfomance," Acta Informatica Malaysia (AIM), Zibeline International Publishing, vol. 2(1), pages 12-16, February.
    4. Ram, Jiwat & Corkindale, David & Wu, Ming-Lu, 2013. "Implementation critical success factors (CSFs) for ERP: Do they contribute to implementation success and post-implementation performance?," International Journal of Production Economics, Elsevier, vol. 144(1), pages 157-174.
    5. Brusset, Xavier, 2016. "Does supply chain visibility enhance agility?," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 46-59.
    6. Schuelke-Leech, Beth-Anne, 2018. "A model for understanding the orders of magnitude of disruptive technologies," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 261-274.
    7. Brusset, Xavier & Teller, Christoph, 2017. "Supply chain capabilities, risks, and resilience," International Journal of Production Economics, Elsevier, vol. 184(C), pages 59-68.
    8. Wen‐Hsien Tsai & Yu‐Wei Chou & Kuen‐Chang Lee & Wan‐Rung Lin & Elliott T.Y. Hwang, 2013. "Combining Decision Making Trial and Evaluation Laboratory with Analytic Network Process to Perform an Investigation of Information Technology Auditing and Risk Control in an Enterprise Resource Planni," Systems Research and Behavioral Science, Wiley Blackwell, vol. 30(2), pages 176-193, March.
    9. Santosh Kumar Pattanayak & Supriyo Roy & Biswajit Satpathy, 2019. "Does Integration of Business Processes and ERP Improves Supply Chain Performances? Evidence from Indian Capital Goods Industry," Vision, , vol. 23(4), pages 341-356, December.
    10. Yeh, Chung-Hsing & Xu, Yan, 2013. "Managing critical success strategies for an enterprise resource planning project," European Journal of Operational Research, Elsevier, vol. 230(3), pages 604-614.

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