CHAPTER 1- INTRODUCTION

1. BACKGROUND OF THE STUDY

“As Supply Chain Management (SCM) is getting rooted in Pakistani industry, to make
organization cost competitive, supply chain is emerged as important function in early 21st
century. It evolved from traditional store keeping to purchasing, distribution, warehousing to
materials management; logistics to integration of important functions with encompassing to
emerge in the form of Supply Chain Management. In other words, it is a linked set of
resources and processes that begins with the sourcing of raw materials and extends through
the delivery of the end items to final customer. SCM is defined by several authors in different
ways. About 173 unique definitions of SCM are available in literature. An encompassing
definition of SCM was provided through review of these 173 explanations in an organised
way” (Hillier and Lieberman, 2005)

“Many case studies have been published, evidencing the benefits of SCM. If we recall
the industrial evolution process and emergence of SCM, it is learnt that organization’s
survival and subsequent growth came from functional approach to organization. If we
considered various function which encompasses into SCM viz. stores, purchase, logistics,
assets management etc. deals with wealth of organization in some or other form. It has great
leverages on the cost and expenses of an organization which has bearing at the bottom line.
Looking at the perianal nature of the function, SCM is been considered as one of important
function in an organization which drives and contributes to its profitability (Shang & Seddon,
2007). The sole purpose of business is to generate reasonable profit. Recent trend in industry
shows that SCM can add on profit if managed professionally. Taking this hypothesis forward
for testing in industry. It is opted to test in FMCG (Fast Moving Consumer Goods) area”
(Kelly, Holland, & Light, 2000).

“A brief literature review is presented in the next section. This followed by

preliminary findings and result of the study. In the final section concluding remarks” are
accessible.
1.1 PROBLEM STATEMENT
“Some researchers indicate that ERP won’t be able to make decision by itself, and
some others say for making decisions based on information stored in ERP, the integrity of the
system and algorithm optimization is inevitable. This research tries to bring out how
information transparency impact on enterprise business process and thereby reduce
operational cost. This research also aims to study about the ERP effects in supply chain
decision making, and precisely ERP’s role on implementing standard supply chain process
and SCM” cooperation.

1.2 RESEARCH QUESTIONS

The research is being directed following these study questions:

1. “What's the impact of enterprise resource planning on supporting supply chain”

management?
2. “What’s the impact of enterprise planning system on” administrative decision?
 CHAPTER 2 - LITREATURE REVIEW

2. THEORETICAL BACKGROUND OF THE STUDY

“Enterprise Resource Planning (ERP) took its start in the late 1980’s and then properly
extended in the 1990’s whereas the large area of focus was the huge scale business
organizations. These systems are considered as complex, they are expensive, they are
powerful while these systems were also considered as the key platform for simplifying the
complex operations. On the other hand, there are certain limitations that are accompanied
modifications that make companies bound to make changes in the complete operational
system of the business to make an adjustment with the module of the software” (Hayes,
2007).

“SCM professionals are one of the important resources to drive the system. As a
result; today’s supply chain manager owes his success or failure purely to the possession or
lack of certain key skills. There are several article which describes what these skills are, how
one can acquire them, and how they can make one more effective supply chain manager”
(Materials Management Review, 2013).

“Information technology solutions that are popular among supply chain and logistics
managers are supply chain management (SCM) software and enterprise resource planning
(ERP) software. Both of these software solutions are used in supply chain management, and
while there are similarities between the two, there are also some important differences. A
supply chain management software solution is one that is designed to automate the planning
aspects of managing the supply chain, the logistics aspects, or both” (Chang, Cheung, &
Cheung & Yeung, 2008).

“SCM solution like RFID, Radio Frequency Identification technology helps retailers
provide the right product at the right place and at the right time, which is an effective way of
maximizing profits. Radio Frequency Identification technology uniquely identifies every
container, item, case, and pallet that is manufactured, sold and shipped. This provides
increased visibility on every level of the supply chain and benefits everyone involved (Otieno,
2008). While Radio Frequency Identification already has been an enormous benefit to a
variety of different industries, one of the biggest drivers behind the technology in the United
States of America has been Wal-Mart. It has been estimated that by fully adopting Radio
Frequency Identification, Wal-Mart could save up to $8.35 billion each year. Roughly broken
up, that total consists of about $600 million via avoiding stock outs” (Levi, Kaminsky, &
Levi. 2000).
 CHAPTER 3 – RESEARCH METHODOLOGY

3. RESEARCH APPROACH
“The current research will use deductive research approach as the basic methodology
of the research is to deduct the results from the available literatures that are available on the
impact of Enterprise Resource Management (ERP) on the Supply Chain Management (SCM).
The research study will help to draw the empirical results that will contribute in the future
studies and also the available literatures on the current genre of the study (Sarker & Lee,
2003). The research study will be more focused on the deducing results rather than inducing
the new results based upon the assumptions. The research study will also specifically focus on
the individual literatures based upon the Enterprise Resource Planning (ERP) and the Supply
Chain Management” (SCM).

3.1 DATA COLLECTION

“Since, the research methodology being used for the current research is deductive
research and for this reason, secondary sources are used. The research study will use the
previous literatures that are available on the current genres of the study. The literature that is
based upon the Enterprise Resource Planning (ERP) will be assessed while the literature that
is based upon the Supply Chain Management (SCM) will also be assessed. The research study
will also assess those literatures that are individually based upon the interactive studies of
Enterprise Resource Planning (ERP) and the Supply Chain Management (SCM) is also”
measured (Voordijk, Leuven, & Laan, 2003).

3.2 RESULT ANALYSIS

“The results will be empirically drawn from assessed literatures. The directs results
will be empirically drawn where the literatures are directly about the subject matter while the
similar results will be drawn from the results of other genres by moulding the results towards”
the researches.
REFERENCES

1) Hillier, F.S, Lieberman, G.J., 2005. “Introduction to Operations Research”, Eight

Edition, New York: McGraw-Hill.
2) Materials Management Review, Monthly Publication of IIMM, India December 2013,
Volume 10-Issue 2.
3) Sarker, S.; Lee,A. S. Using a case study to test the role of three key social enablers in
ERP implementation, Information & Management, 40(2003)8, 813-829.
4) Voordijk, H.; Leuven, A. V.; Laan, A. Enterprise resource planning in large
construction firm: implementation analysis, Construction Management & Economics,
21(2003)5, 511-521.
5) Shang, S.; Seddon, P. B. Managing Process Deficiencies with Enterprise Systems.
Business Process Management Journal.13(2007)3, 405-416.
6) Kelly, S., Holland, P., Light, B., 2000, “A Departure from Traditional Systems
Development Methodologies: Enterprise Resource Planning, ERP, Systems and the
use of Process Modelling Tools”, Proceedings of the 9thAnnual Business Information
Technology Conference, November 3-4 1999, Manchester.
7) Hayes, S. Providing Enterprise Systems. Practical Accountant 40(2007)2, SR11-SR11.
8) Chang, M. K.; Cheung, W.; Cheung, C-H.; Yeung, J. H. Y. Understanding ERP
System Adoption from the User's Perspective, 113(2008), 928-942.
9) Mishra, A.; Mishra, D. Enterprise System Implementation: An Oil and Gas
Exploration Sector Perspective, F. Bomarius et al. (Eds.): PROFES 2009,
LNBIP32(2009), 416–428.
10) Otieno, J. O. Enterprise resource planning (ERP) systems challenges: A Kenyan case
study. W. Abramowicz and D.Fansel (Eds.): BIS 2008, LNBIP7(2008), 399-409.
11) Jeremy F. Shapiro. Modeling the Supply Chain. Duxbury Thomson Learning,2001.