The Effects of Uncertainty on ERP-Controlled Manufacturing Supply Chains

Author(s):  
S. C. Lenny Koh ◽  
Angappa Gunasekaran

The use of enterprise resource planning (ERP) is becoming increasingly prevalent in many modern manufacturing supply chains. However, knowledge of their performance when perturbed by several significant uncertainties simultaneously is not as widespread as it should have been. This chapter presents the developmental and experimental work on modelling uncertainty within an ERP multi-product, multi-level dependent demand manufacturing supply chain in a simulation model developed using ARENA/SIMAN. To enumerate how uncertainty affects the performance of an ERP-controlled manufacturing supply chain, the percentages of finished products delivered late (FPDL) and parts delivered late (PDL) are measured. Sensitivity analysis shows that PDL gives a more accurate effect. Simulations results are analysed using analysis of variance (ANOVA), which identifies four uncertainties namely late delivery from suppliers, machine breakdowns, unexpected/urgent changes to machine assignments, and customer design changes significantly affect PDL. Some uncertainties are found significantly interactive in two and three-way. They produce either knock-on and/or compound effects, a factor not generally recognised as a criterion for decision-making.

Author(s):  
Li Zhong Zhang

Advances in computing technologies have presented the management of supply chain firms with opportunities to enhance the competitive advantages of their organisations. Some of those opportunities arise from the deployment of modern systems that encompass the three most important components in supply chains management: namely, enterprise resource planning, customer relationship management, and e-commerce. The current technology available in cloud systems appears to satisfy the needs of supply chain firms for managing resource planning, customer relationship, and e-commerce simultaneously. The main purpose of this chapter is to alert supply chain firms to the risks that they could face if their cloud system implementation is not carefully managed or if not appropriately selected and supported. The proposed investment strategies could assist supply chain firms in ensuring that their cloud system activities are positioned to assist and sustain their competitive advantages.


2021 ◽  
Vol 13 (8) ◽  
pp. 4358
Author(s):  
Zeplin Jiwa Husada Tarigan ◽  
Hotlan Siagian ◽  
Ferry Jie

This study investigates the impact of enhanced enterprise resource planning (ERP) on firm performance through green supply chain management, supplier integration, and internal integration. The population is the manufacturer domiciled in East Java, Indonesia, which has implemented ERP and been certified by the International Organization for Standardization (ISO) in the environmental management system. Data collection used a questionnaire designed with the five-point Likert scale. Of 243 manufacturers, 150 questionnaires were distributed, and 135 questionnaires are considered valid for analysis. Data analysis used smart PLS software. The result indicated that all eight predetermined hypotheses were supported. Enhanced ERP affects supplier integration, internal integration, and green supply chain management. Internal integration affects green supply chain management and firm performance. Supplier integration affects green supply chain management and firm performance. Green supply chain management affects firm performance. An interesting finding is that green supply chain management, internal integration, and supplier integration mediate the effect of enhanced ERP on firm performance. This study’s novelty lies in the research model that analyzes the relationship between the four constructs simultaneously with the green supply chain management, internal integration, and supplier integration as a mediating variable. The research provides an insight for the manager on how to improve the firm performance in supply chain management. This study could also contribute to the current research in supply chain management.


2019 ◽  
Vol 17 (2) ◽  
pp. 99
Author(s):  
Hasnawati Zainal ◽  
Milan Oresky

<p class="Imar-Abstract">The objectives of this research are to see the influence of Enterprise Resource Planning (ERP) implementation and organizational capability toward Green Supply Chain Management (GSCM) practices. GSCM practices are seen through green purchasing, cooperation with customers, and investment recovery practices. ERP implementation is measured using integration, configuration, and adaptation of the organization information system. Meanwhile, organization capabilities are measured by information access, product innovation, and flexibilities.</p><p class="Imar-Abstract">This research uses a convenience sampling technique by distributing questioner 60 respondents. They are employees who work in different types of companies. The results showed that ERP implementation influences the practice of cooperation with customers, while ERP practices do not influence green purchasing and investment recovery practices.  Organizational capabilities also do not influence the practice of GSCM.</p>


2012 ◽  
pp. 581-600
Author(s):  
Jan van den Berg ◽  
Guido van Heck ◽  
Mohsen Davarynejad ◽  
Ron van Duin

Enterprise Resource Planning systems have been introduced to support the efficient and effective execution of business processes. In practice, this may not fully succeed. This also holds in particular for inventory management (IM), which forms a part of supply chain management. Within this research, by analyzing the IM business process theoretically, eleven potential benefits are indicated. Next, by using a Business Intelligence approach, key performance indicators (KPIs) are selected to measure the performance of IM sub-processes. Integration of these approaches yields an IM performance decision support framework that can be used to obtain a generic, coherent picture of the fundamental IM processes in an organization. In addition, by tracking and analyzing KPI measurements, adequate decisions can be prepared towards the improvement of the operational IM performance. The proposed framework is validated using experts’ opinions and a comparative case study. The experts’ comments yielded a list of top-10 KPIs, based on the measurements of which a set of quick wins can be determined. The case study results show that some of the identified potential benefits are also observed in practice. Future research may reveal that comparable performance improvements are possible in other IM environments (and even in other supply chain domains) based on similar decision support frameworks.


Author(s):  
Eldon Y. Li ◽  
Timon C. Du

This chapter introduces collaborative commerce as a means of integrating information technologies into e-business adoption. It explains how companies use information technology to achieve a closer integration and a better management of business relationships among business partners, including internal personnel, business partners, and customers. In this chapter, collaborative commerce is defined as (1) a collaborative technology, similar to workflow collaboration; (2) a customer-driven technology, similar to a pull-type supply chain; (3) a functionally integrated technology, similar to concurrent engineering; and (4) a business-driven technology, similar to enterprise resource planning, for cross-organisational integration. The authors hope that understanding the characteristics and infrastructures of collaborative commerce can improve the adoption of the technologies.


2010 ◽  
pp. 605-620
Author(s):  
Sundar Srinivasan ◽  
Scott E. Grasman

The advent of the Web as a major means of conducting business transactions and business-to-business communications, coupled with evolving Web-based supply chain management (SCM) technology, has resulted in a transition period from “linear” supply chain models to “networked” supply chain models. Various software industry studies indicate that over the next five to seven years, interenterprise business relationships, information structures, and processes will evolve dramatically. Enterprises will blend internal production and supply chain processes with those of their external trading partners. Currently, organizations are finding creative ways to mitigate supply chain costs while maintaining operational efficiency. New approaches, technologies, and methodologies are aiding with these cost-cutting measures to drastically reduce supply chain costs and increase customer satisfaction. This chapter discusses the background of supply chain planning and execution systems, their role in an organization, and how they are aiding in collaboration. The chapter concludes with a case study on how a supply chain management system could help an organization be more effective.


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