Impact of Enterprise Resource Planning ERP on Supply Chain Management : A Pakistani Textile Industry Perspective

Abstract

The purpose of this research is to evaluate the benefits of Enterprise Resource Planning (ERP) systems in the supply chain performance of organizations. This research evaluated the benefits of Enterprise Resource Planning (ERP) systems in the supply chain of textile industry of Pakistan. The research hypotheses are based on the literature review and previous studies done on this topic in international markets. This study is conducted by using quantitative data that is taken from the textile industry of Pakistan from Faisalabad and Lahore city. The tool used for the collection of data is questionnaire. This research includes three types of benefits of ERP system as independent variable in which operational, tactical and strategic benefits are studied. The dependent variable is supply chain management in which four dimensions are taken which is internal business perspective, external business perspective, customer service and cost management. The research concluded that ERP operational, tactical and strategic benefits are significant in internal business perspective and customer service. The results of the research also concluded that in Pakistani Textile industry the expected benefits of ERP are not fully achieved in all dimensions specifically operational and strategic benefits in external business perspective and strategic benefits in cost management are not insignificant in Pakistan. Overall, implementation of ERP systems has a significant role in enhancement of supply chain in Pakistani organization explicitly in textile industry.