ERP & Supply Chain Management

Topics: Enterprise resource planning, Business process reengineering, Business process management Pages: 24 (8168 words) Published: October 10, 2013


Chapter 1
Introduction

1.1 Background
This is the age of science and technology. Not a single organization can sustain its position in the market without being using the technological advancement. The only thing in this universe which remains same is change. Therefore manufacturing environment has also been changed by the passage of time. Companies have the pressure to produce on the right time and right quantity in-order to achieve efficiency. On the other hand competition is increasing globally. Companies have to focus on more reliable and less time consuming means for their production. ERP which is the acronym of Enterprises Resource Planning is the solution of their problem. Enterprises Resource Planning is the set of application software which is integrated with accounting, distribution, sales and marketing, material management, human resource, logistics and several other functions of the business. It is derived from the material requirement planning (MRP). This paper aims to explore the barriers before implementation and the challenges after implementation of ERP in the textile industry of Karachi the more focus would be given on the material procurement module of Enterprises Resource Planning. The study has narrowed to the textile sector of Karachi. Enterprises resource planning supports the organization in achieving cost-effectiveness, labor saving, inventory reduction, better management of resources, better process execution etc. (Polychronopoulos, 2005). Initially in 1970s-1980s when computer was introduced commercially and companies had started using it then the focus had derived for the use of computer in scheduling and planning. That was the time when initially material requirement planning MRP introduced. That idea then converts into MRP-II material resource planning. In 1990s MRP-II further more improved and became ERP with all added features and integration with the departments like finance, human resource, supply chain etc,. There are many providers of ERP, among them German company SAP AG is the market leader. Some other top rated providers are Oracle Corporation, J.D Edward & Co. Baan Co. NV Etc., ERP implementation is the strategic decision for the company and it requires seriousness of the top management and detailed understanding regarding the impacts of implementation. Numerous researches had been conducted in ERP implementation but very several researches had been done on the after effects of implementation of enterprises resource planning. This paper will explore the challenges which appear after implementation and also what are the pre-challenges of implementation Enterprises Resource Planning. The more focus would be given on the material procurement module of ERP and trying to explore the problem faced by the mechanical department with respect of maintenance, repair and operating supplies. The paper focuses in textile industry in Karachi. Many textile companies are in the process of implementing ERP or recently implemented ERP due to which the research in this domain would be beneficial for those who had not taken the decision of migrating themselves. 1.2 Problem Statement

Precedent researches have contributed adequate information concerning the impediments while implementing ERP in various areas of management including Human resource or people management, Business process re-engineering, Organizational leadership, Technological shift, User support, Consultant support1 etc,. Researchers have found that the preceding factors really have contributed in the successful implementation of ERP. As far as my knowledge is concerned no research has been conducted on this subject particularly in the industry of Textile Weaving in Pakistan. Another important area of investigation is the after effects of ERP in the context of Pakistani Textile Weaving industries. This research will benefits the Textile industry of Pakistan and also provides a brief...

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