IMPACT OF ENTERPRISE RESOURCE PLANNING (ERP) ON SUPPLY CHAIN PERFORMANCE OF THE FIRMS

Abstract

Purpose: In today s competitive world every single firm in developing country like Pakistan is very keen to adopt system and practices which increase the operational efficiency and effectiveness so as is the case with the Supply chain Department. SCM plays a vital role in gaining competitive edge over competitors through cost and lead time reduction and operational efficiency like timely and accurate flow of information which is only possible through a system named as ERP or Enterprise Resource Planning system. That’s the reason this trend has increased where the firms are installing and implementing this ERP module. Here the main purpose of our research is to assess the impact of ERP on the Supply chain performance of the firms Methodology: In this study we have used survey method to collect the data and questionnaire was used to collect the data from the employees of three companies. Sample size is 200 whereas sampling technique is random sampling. In this way the data was further used to study regression, Anova and correlation. Findings: Result shows that the implementation of ERP in SCM shows that, all the research variables (Lead time & process development) have significant impact on firm performance while cost reduction and wastages have insignificant relationship/impact on performance. Among all the ERP helps in defining processes which can enable the firm in taking more businesses and leads to lower down its cost and wastages. Impact: The outcome of this research is to point out the impact of ERP on the Supply chain performance of the firms and result shows it has strong and positive impact.