A Study on Enterprise Resource Planning (ERP) Systems and Their Impact on Supply Chain Performance

Abstract

Businesses are increasingly using Enterprise Resource Planning (ERP) systems for unifying the various activities that take place in their businesses and for making information accessible. This study explores the employees' perception of the efficacy of ERP in relation to supply chain performance. The focus was given to inventory management, real-time information, coordination, operating costs, procurement and information sharing. A descriptive quantitative method was used based on responses from 50 individuals. The primary data collection tool was a structured questionnaire that consisted of questions about respondent's characteristics, the usage of ERP in business and supply chain performance. The performance was assessed through different statements using a five-point scale, and the analysis of the data was conducted using percentages. According to the results, generally, the perceptions were positive. Nearly 80% of the respondents think that ERP improves the efficiency of inventory management, and 76% confirmed that it provides them with accurate real-time information. 66% agreed that they can achieve better coordination in the work of departments, while 74% of the respondents confirmed that ERP reduces the operating costs. The research shows that respondents participate in such ERP usage on a regular basis. In sum, the results demonstrate that ERP systems provide greater visibility of information along with improved inventory tasks, procurement processes, and supply chain collaboration. More frequent training, upgraded systems, secure data management, support for users, analytic techniques, employee participation, and standardized processes can enhance the effectiveness of ERP use. Keywords Enterprise Resource Planning, ERP Systems, Supply Chain Performance, Inventory Management, Procurement, Real-Time Information, Supply Chain Visibility, Digital Transformation