Why are enterprise resource planning systems indispensable to supply chain management? |
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| Authors: | Yi-fen Su Chyan Yang |
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| Institution: | 1. Institute of Information Management, National Chiao Tung University, 1001 Ta Hsueh Road, Hsinchu 300, Taiwan, ROC;2. Institute of Business and Management, National Chiao Tung University, 118 Zhong Xiao West Road, Taipei 100, Taiwan, ROC;3. Department of Information Management, Minghsin University of Science and Technology, 1 Hsin Hsing Road, Hsinfong, Hsinchu 304, Taiwan, ROC |
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| 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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| Keywords: | Enterprise resource planning (ERP) Supply chain management (SCM) Enterprise system (ES) Structural equation model (SEM) |
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