ERP systems' capabilities for supply chain performance management

Abstract

Purpose

The first purpose of this paper is to describe the demands from supply chain performance management (PM) on enterprise resource planning (ERP) systems. The second purpose is to evaluate the corresponding capabilities of common ERP systems.

Design/methodology/approach

The first purpose is handled conceptually: by a literature review, a framework for the demand on ERP systems from supply chain PM is developed. The second purpose is handled with an empirical study, based on the framework. Respondents for 12 common ERP systems on the Swedish market are interviewed.

Findings

A framework for the demand on ERP systems from supply chain PM is developed containing ten demands: a theoretical contribution. The studied ERP systems are found overall to have good supply chain PM capabilities, where the most supporting systems in this sense are Oracle and iScala.

Research limitations/implications

The findings imply that future research on supply chain PM could focus less on ERP systems' capabilities and more on how ERP systems are applied.

Practical implications

The findings can give two types of input to companies purchasing or upgrading ERP systems; a “checklist” of demands from supply chain PM to consider and an evaluation of the corresponding capabilities for common ERP systems.

Originality/value

Even though investments in ERP systems represent significant costs for companies, few studies in the area of ERP systems and supply chain PM are identified.

Citation

Forslund, H. (2010), "ERP systems' capabilities for supply chain performance management", Industrial Management & Data Systems, Vol. 110 No. 3, pp. 351-367. https://doi.org/10.1108/02635571011030024