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European Journal of Operational Research Why are enterprise resource planning systems indispensable to supply chain management? Yi-fen Su, Chyan Yang

Supply chain design is becoming a core competency, and the enterprise resource planning (ERP) system isexpected to be an integral component of supply chain management (SCM). Installing an ERP system is,however, expensive and risky. IT managers must decide how to use their limited resources and invest in the right product. Can an ERP system directly improve SCM competency? This study proposes a conceptual framework featuring the ERP benefits and SCM competencies, and examines the impacts of the former on the latter. The results confirm the operational, managerial, and strategic benefits of ERP for the SCM competencies, but not the IT infrastructure and organizational benefits as significant predictors of them. Moreover, more than 80% of respondents think it necessary to first adopt an ERP system as the backbone of company operations before deploying other enterprise systems (ES), such as the SCM system. VARIOUS RESEARCH QUESTIONS The operational benefits of ERP positively affect the operational process of SCM. The managerial benefits of ERP positively affect the operational process of SCM. The strategic benefits of ERP positively affect the operational process of SCM. The IT infrastructure benefits of ERP positively affect the operational process of SCM. The organizational benefits of ERP positively affect the operational process of SCM. The strategic benefits of ERP positively affect the Planning and Control Process of SCM. The IT infrastructure benefits of ERP positively affect the Planning and Control Process of SCM. The organizational benefits of ERP positively affect the Planning and Control Process of SCM. METHODOLOGY: To develop the research instrument, where possible measurement items are adapted from the literature. We identify the constructs of ERP benefits and SCM competencies that are hypothesized to be important antecedents of successfully creating SCM competencies. This is followed by site visits, interviews, and further literature reviews. In total, we visit three IT firms with operational ERP systems, where we gather first-hand knowledge about ERP systems at multiple levels in the organization, including users, IT technicians, engineers, production planners, supervisors, managers, and consultants. The pre-tests indicate that the questionnaire is deemed appropriate to examine the relationship between ERP and SCM in Taiwanese IT firms. A seven-point Likert scale anchored at strongly disagree (1), strongly agree (7), and neither agree nor disagree (4) is used to collect most responses, while some questions involve absolute

numbers, percentages or binary variables. The final questionnaire consists of 47 items (after dropping five that were suggested by experts) for eight constructs, and 10 questions pertaining to industry, number of employees, estimated revenue, type of ERP and SCM related software used, and the number of months and years since the ERP and SCM system initiatives. Exploratory factor analysis (EFA) was first conducted to check whether the proposed factor structures are indeed consistent with the actual data. Second, multiple regression was conducted to verify the impacts of ERP benefits on SCM competencies. Third, confirmatory factor analysis (CFA) was conducted to assess the measurement model; then, the structural relationships were examined. To validate our measurement model, content validity, construct validity (including Cronbach alpha), convergent validity, and discriminant validity were assessed. Content validity was established by ensuring consistency between the measurement items and the extant literature. This was done by interviewing senior practitioners and pilot-testing the instrument. For the construct validity, the items were tested for scale reliability.


The impact on the operational process. There are six items in the operational process of the SCM construct. The regression results strongly support the hypotheses demonstrating that SCM competencies in the operational process are positively impacted by operational, managerial, and strategic benefits of ERP The impact on the planning and control process There are six items in the planning and control process of the SCM construct. From the regression results it can be concluded that the hypotheses are strongly supported. demonstrating that SCM competencies in the planning and control process are positively impacted by the operational, managerial, and strategic benefits of ERP. Especially, the strategic benefit of ERP is the most dominant predictor for SCM competencies in the planning and control process, because the beta coefficients of some items are high, such as information management (SPCP1, .41), internal communication (SPCP2, .50), connectivity (SPCP3, .38), collaborative forecasting and planning (SPCP4,.37), and functional assessment (SPCP5, .31). The impact on the behavioral process There are five items in the behavioral process of the SCM construct. The regression results support the hypotheses. demonstrating that the managerial and strategic benefits of ERP have the most impact on SCM competencies.

The operational, managerial, and strategic benefits are significant predictors for the SCM. A significant contribution of this study is the empirical test of theoretical assumptions in the extant literature of the influence of ERP benefits on SCM competencies. It confirms that of the five constructs of ERP benefits, the three that positively impact on SCM competencies are operational, managerial, and strategic benefits.


Future research based on the results of this study could perform a comparative analysis of the effect on performance of adoption of an ERP system alone, adoption of an SCM system alone, and simultaneous adoption of both system types. Furthermore, while the sample consisted of Taiwanese IT industry companies, it might be better to collect data from IT industry companies of other countries, such as Korea, Singapore, and China.

Adopting new technologies for supply chain management Kirk A. Patterson , Curtis M. Grimm , Thomas M. Corsi

Abstract Integration of supply chain activities and the technologies to accomplish it have become competitive necessities in most industries. Accordingly, the trend toward greater use of supply chain technologies is on a clear path forward. As one manager has noted: With almost daily technology advancement globally in every facet of the business, organizations need to synchronize by adopting and implementing new electronic commerce and supply chain technology in order to protect market share, not to mention improve market penetration. This paper develops a model of the key factors influencing the adoption of supply chain technology. The following set of variables were hypothesized to have a significant impact upon the pace of technology adoption: firm size, organizational structure, integration of supply chain strategy with overall corporate strategy, past financial performance, supply chain partner pressure, transaction climate and environmental uncertainty. The model provides a better understanding of the supply chain technology diffusion process. The paper also includes a survey, which has been developed to test the model. VARIOUS RESEARCH QUESTIONS OR HYPOTHESIS: H1 The larger the organization, the more likely it will be to adopt supply chain technology. H2 The more decentralized the organization, the more likely it will be to adopt supply chain technology. H3 Less successful organizations in the past will be more likely to adopt supply chain technology. H4 Organizations that have integrated supply chain management strategy with overall corporate strategy will be more likely to adopt supply chain technology. H5 Organizations subjected to greater pressure from supply chain partners will be more likely to adopt supply chain technology. H6 Organizations with a more favorable transaction climate with supply chain members will be more likely to adopt supply chain technology H7 Organizations facing higher environmental uncertainty will be more likely to adopt supply chain technology.

METHODOLOGY Accordingly, a survey instrument was developed with input from the Revere Group, a consulting firm specializing in supply chain management. The survey consisted of a series of five-point Likert scaled questions typically anchored with Not at all and To a great extent as well as several open-ended questions Unless questions were reverse coded, higher values indicate a greater level of the construct under investigation. The first step was to develop a list of supply chain technologies to be included in the survey. The list includes a variety of technologies ranging from mature and widely used technologies such as bar coding technology to relatively new software applications such as supply chain planning systems and supply chain event management systems. the degree of supply chain strategy incorporation into overall business strategy could be used to measure supply chain strategy integration. Averaging responses across a number of related questions could derive two of the independent variables (transaction climate and supply chain member pressure). The transaction climate variable could be calculated as a composite value by averaging the extent of trust and commitment between the respondent_s firm and its suppliers, customers, carriers, and third party logistics providers. The supply chain member pressure variable could be computed by averaging the degree to which customers, suppliers, carriers, and third party logistics providers had encouraged the respondent_s firm to adopt supply chain technology. To assess the degree to which firms have adopted supply chain technology, a technology adoption score can be computed for each firm by averaging the responses across 13 functional technologies and two integrative technologies. The 13 technologies were: Product Data Management, Customer Relationship Management, Automated Quality Control Systems, Computer Aided Design Systems, Warehouse Management Systems, Manufacturing Execution Systems, Transportation Management Systems, Radio Frequency Systems, Geocoded Tracking Systems, Bar Coding Technology, Electronic Commerce Technologies, Supply Chain Event Management, and Demand Forecasting Management. The survey was constructed by using scale items from previously validated surveys and through extensive testing with academicians, business consultants and supply chain managers. The initial survey was developed and presented to Revere Group consultants. Items were evaluated for clarity, completeness, relevance and flow. After modifications, the survey was pre-tested on a group of about 50 Revere Clients. The respondents provided valuable feedback and qualitative comments on the topic that led us to further refine and improve the survey. FINDINGS Thus, we developed a model on the antecedents of supply chain technology adoption. We theorize that firms with greater numbers of employees adopt more technologies perhaps to improve information management and activity coordination. Large organizations may have greater volumes of transactions, more geographically dispersed operations, more supply chain partners, and/or more information to manage and are thus would be more likely to adopt information technology systems to improve operational efficiency and very often lower cost. Organizations that understand the competitive benefits of efficient and effective supply chain operations incorporate supply chain strategy into organizational strategy. supply chain partners have a substantial impact on a firm_s decision to adopt supply chain technologies. As organizations integrate operations and technology becomes more prevalent, firms coerce members of their supply chain to adopt new technologies to satisfy the need for fast and accurate information. The pre-test written comments on the survey provide support for the notion that customers exert greater pressure than other partners in the supply chain. Organizations facing greater uncertainty employ supply chain technology to improve information management and exchange in order to be able to better respond to changing environmental conditions. As Kwan (1999) suggested, information technologies allow firms to more quickly and accurately share demand data, sales projections and production schedules

which provides adopting organizations greater flexibility and responsiveness in the face of a constantly changing environment.

Information systems in supply chain integration and management A. Gunasekaran , E.W.T. Ngai

Abstract Supply chain management (SCM) is the 21st century global operations strategy for achieving organizational competitiveness. Companies are attempting to find ways to improve their flexibility and responsiveness and in turn competitiveness by changing their operations strategy, methods and technologies that include the implementation of SCM paradigm and information technology (IT). However, a thorough and critical review of literature is yet to be carried out with the objective of bringing out pertinent factors and useful insights into the role and implications of IT in SCM. In this paper, the literature available on IT in SCM have been classified using suitable criteria and then critically reviewed to develop a framework for studying the applications of IT in SCM. Based on this review and analysis, recommendations have been made regarding the application of IT in SCM and some future research directions are indicated. AIM OF THE RESEARCH To look at the various aspects of use of information technology in supply chain: 1. 2. 3. 4. 5. 6. 7. Strategic planning for IT in SCM Implementation of IT in SCM E-commerce and SCM Infrastructure for IT in SCM Knowledge and IT management in SCM Marketing reasons of IT in SCM Economic reasons

METHODOLOGY The research methodology employed for developing the framework for the successful application of IT in SCM is the literature survey. In addition to the classification of the literature on IT in SCM, the tools used to model and analyse various IT-enabled SCM environments also presented. This would be useful to researchers who are interested in modelling and analysis of various decision-making environments with reference to IT in SCM. The literature search has been conducted with the help of e-journal_s search engines available in The Hong Kong Polytechnic University library. The literature search was aimed at primarily helping researchers and practitioners in implementing a successful IT system for achieving an effective SCM. With this in mind, we looked at the literature that deals with IT-enabled SCM.

ANALYSIS The selected articles are classified into five major broad categories focusing on developing an IT-enabled SCM: (a) Strategic planning for IT in SCM The strategic planning is a critical task especially for IT-enabled SCM. It has long-term implications on the performance of IT in SCM systems. (b) Virtual enterprise and SCM Virtual enterprise is based on outsourcing concept to take advantage of the core competencies with the objective of being flexible and responsive to changing market requirements. Companies integrate various links of the supply chain and their supporting information systems that are driven by the need to streamline operations. The relationships of VE and the Internet have brought SCM to the attention of top management. (c) E-commerce and SCM With the development of Internet based technologies, integration of e-commerce with SCM systems is becoming a necessity. It can support various activities along the supply chain. B2B ecommerce has tremendous influence on integrating partners in an organization to achieve an effective SCM. (d) Infrastructure for IT in SCM Companies suffer without having sufficient knowledge on what type of IT infrastructure or systems required for their business model to achieve an IT-enabled supply chain. The infrastructure includes the hardware and software and the nature and type of systems required for IT system in a supply chain environment. (e) Knowledge and IT management in SCM Since we are operating in information and automation intensive world, there is a need for knowledge workers to contribute to the value adding. Concluding remarks It has been demonstrated that IT is an essential ingredient for business survival and improves the competitiveness of firms. As a result of the literature review, we can see that IT has a tremendous influence on achieving an effective SCM. SCOPE FOR FUTURE RESEARCH There are several tools and methods available for effectively managing the implementation of IT for responsive supply chain and some them can include QFD, CE and life cycle approach. Besides, business process reengineering has been considered as one of the most important strategies for streamlining the business process.


Prof. Himanshu S. Moharana , Dr. J.S. Murty, Dr. S. K. Senapati, Prof. K. Khuntia

ABSTRACT In order to survive and beat the competition in todays competitive world, one has to manage the future. Managing the future means managing information. In order to deliver quality information to the decisionmaker at the right time and in order to automate the process of data collection, collation and refinement, organizations have to make Information Technology an ally, harness its full potential and use it in the best possible way. IT is beneficial for cooperation and integration within the stakeholders of the supply chain. RESEARCH QUESTION How inter organisational information system ( IOIS) helps in integrating supply chain entities? METHODOLOGY Five basic levels of participation for individual firms within inter organizational system are: 1) Remote I/O node, in which the member participates from a remote location within the application system supported by one or more higher-level participants. 2) Application processing node, in which the member develops and shares a single application such as an inventory-query or order-processing systems. 3) Multi participant exchange node, in which the member develops and shares a network inter-linking itself and any number of lower-level participants with whom it has an established business relationship. 4) Network control node, in which the member develops and shares a network with diverse applications that may be used by many different types of lower-level participants; and finally. 5) Integrating network node, in which the member literally becomes a data-communications/data-processing utility that integrates any number of lower-level participants and applications in real time. ANALYSIS AND FINDING Investigate the impact of information sharing on performance in different settings. Again, depending on the specific settings, benefits vary, but in almost all models, information sharing improves supply chain cost performance directly or indirectly between 0% and 35%. It has been found out that a quicker and more even flow of goods through the supply chain is more beneficial than information sharing. Achieving a quicker and more even flow of goods requires at least improved information processing capabilities and therefore information sharing also influences that indirectly. It is also acknowledged that in an environment with higher demand uncertainty, the value of information sharing may increase. Typically, the following types of information are of relevance :

1. Inventory level: This includes all kinds of inventory, such as material, work in progress, finished goods, and goods in transit. 2. Sales data: Ultimate sales data lessen the negative effects of distorted demand information when simulated with visible end consumer demand. 3. Sales forecast: Since companies adapt their plans to their forecasts, it is important to share these expectations. If sales data are shared, every company in the supply chain could do their forecasts based on ultimate sales data. However, different methods might lead to differing results. 4. Order status for tracking and tracing: This supports mainly customer service and reduces uncertainty in the supply chain and for the ultimate customer. 5. Production and delivery schedules: The different tiers in a supply chain can align their operations to support the whole process if production and delivery schedules are shared, as is the case for just-in-time relationships. 6. Capacity: Sharing capacity information, especially production and transportation capacities, can mitigate shortage and gaming behavior and supports supply chain planning. 7. Performance metrics: This includes all performance metrics that are relevant for the whole process under consideration. Examples are quality data, lead times, queuing delays, and service performance. 8.Relevance: The information addressees needs define the relevance of information. This does not mean that irrelevant information is of poor quality but in the wrong context, it might be irrelevant. 9. Accuracy: Information should reflect the underlying reality. Problems may arise when information becomes too accurate for its purpose and lead to an information overload. 10. Timeliness: In contrast, information can rarely be too timely. With time as an increasingly important competitive factor, the importance of fresh and up- to-date information increases too. 11. Completeness: Completeness of information has to be seen in light of its context. 12. Coherence: Though a separate dimension, it heavily relies on accuracy and/or timeliness. When information is incoherent, it usually is inaccurate and/or already too old. 13. Format: The underlying form refers to the way information is presented. 14. Accessibility: With increasing accessibility, the quality of information increases as well. Information that cannot be obtained when needed is of very limited value. Accessibility is strongly associated with timeliness of information. 15. Compatibility: This refers to how well information can be processed with tools and combined with other information. 16. Security: Security can be divided into logical security, which refers to fraud protection, and disaster recovery, which refers to natural disasters and facility failure.


It is confirmed that the importance of IT and quality of information are complementary to each other because manual filtering might disappear. Although automated information processing prevents manual mistakes, it also makes the process less transparent and therefore, wrong information or information of low value might be generated if the information input is already of bad quality and not properly checked. A distinction can be generated between the volume of information and the richness of information exchange. The sharing of information in systematic language involves more action and commitments support to enhance the quality of any organization which is beneficial in the light of supply chain.

Enhancing the supply chain management performance using information technology: some evidence from UAE companies Balan Sundarakani University of Wollongong in Dubai, Albert Wee Kwan Tan University of Wollongong, David Van Over University of Wollongong in Dubai,

Abstract: The objective of this paper is to investigate Supply Chain Management (SCM) performance of selected companies in the United Arab Emirates (UAE) countries upon successful implementation of Information Technology (IT) applications. By carrying out an in-depth qualitative analysis, the paper seeks to evaluate how IT can enhance the SCM performance from a practitioner perspective. The survey results have indicated that respondents are aware that adopting IT does not necessarily translate to immediate benefits. Companies in UAE will, therefore, need to educate their senior managers on using IT systems to streamline their supply chain operations, reduce cycle time and improve supply chain visibility. While most respondents have implemented IT systems for transactional processing, more can be done to implement more advanced IT systems for better planning and decision-making. Objectives of the research This research was aimed to reach out to a large number of manufacturing, trading and logistics companies to collect data about the usage of IT in their supply chain. The survey findings will give us insight into how IT is being used in todays changing supply chain landscape in the UAE. The objectives of the study are: to assess the IT adoption level; its applications, infrastructures and standards used for information sharing; and connectivity and its barriers to usage of IT to identify the potential IT skills needed by logistics professional to effectively manage logistics processes

to identify future plans in using IT to enhance its competitiveness in the supply chain. Survey methodology The survey was conducted by using a survey questionnaire, which is divided into four main sections: organisational information, company strategies and directions, IT applications and the implementation of IT, and the adoption of emerging technology in the future. Understanding the organisational information helps us to understand the company profile, their supplier and customer profiles, and distribution of employees supporting logistics and IT. Similarly, knowing the company strategies and directions will help us to understand their company priorities in pursuit of SCM and whether these priorities are in line with best practices in the world. The key parameters in the survey framework consist of supply chain strategies, IT and achievements. The strategies adopted by companies to compete successfully in the market include JIT, Quick Response, Postponement and VMI. Survey response An online survey was hosted in the university website and e-mail invitations were mailed to 300 companies from logistics industries, electronics, telecommunications, food and beverages, chemical and oil-related companies and other SCM-related organisations. The respondents were asked to respond using a fivepoint Likert scale for most of the questions. We received 47 valid responses from the SCLG members making a response rate of 22%. Survey findings The responses are comparatively higher from Multi-national Companies (MNCs) that constituted almost half (45%) of the total response, followed by local company (30%) and Government linked company (15%) (Figure 3). If we look at the profile of the survey respondents, around 40% of respondents were from local enterprises, of which 30% had more than 30% local equity. From the type of businesses, 31% of the respondents are logistics companies and 26% of them are trading companies (Figure 4). The rest of the respondents are a mixture of service companies. Classifying the survey respondents based on top 3 industry profile, among 22% of the respondents are from logistics industry, 13% of the respondents are from the Consumer Electronics industry and 9% of respondents are from the Telecommunication industry. Findings Top 3 strategies adopted by the company 1. My company extensively measures logistics performance in terms of cost, productivity, customer service, asset management, and quality 2. My company believes in the strategic values of using IT in our supply chain. Therefore the development of IT is driven and planned by senior management My company considers logistics as one of its core strengths Strategies not adopted by the company 1. My company has procedures in place to facilitate reverse logistics 2. My company has partnerships with suppliers or customers who operate under principles of rewards and risks Top 3 achievements for using IT

1. My company has eliminated intermediate steps/processes to reach our customers 2. My company has substantially reduced customer order cycle time 3. The quality of data has improved Top 3 barriers to IT adoption 1. Difficulty in quantifying the intangible benefits 2. Insufficient IT resources 3. Long implementation time Not a barrier for IT adoption 1. High failure rate of IT implementations 2. Not a necessity 3. Too many industry standards to follow (interoperability problems) Technologies implemented 1. Groupware (e.g., Outlook, Lotus Notes) 2. Fault tolerance (i.e., automatic backup and recovery) 3. Automatic identification (e.g., bar code, RFID) Technologies still implementing 1. Relational databases (e.g., Informix, Oracle, Sybase) 2. Electronic data interchange 3. Enterprise solution software (e.g., Oracle, Peoplesoft, SAP) Technologies plan for 2 years 1. Real-time data processing (e.g., radio frequency technologies) 2. Process automation (e.g., ASRS, AGV) 3. Object-oriented software development

Customer expectations are increasingly demanding. More customers are expecting immediate responses from enquiries. These expectations can only be met if reliable and real-time information is readily available. IT and well-integrated business processes are the means of providing relevant and timely information. As more companies adopt IT as means of improving customer service, IT no longer becomes a competitive edge but a necessity. Respondents in the survey have clearly indicated that they believe that IT is a necessity.

Supply Chain Integration: Definition and Challenges Hussain A.H Awad, Mohammad Othman Nassar

Abstract Ever Since the Council of Supply Chain Management Professionals (CSCMP) Defined Supply Chain Management and the Council of Logistics Management (CLM) adopted the definition of logistics in 1984, the integration of a supply chain processes or activities became obligatory definition. Many firms have extended their chain from upstream and downstream to include other vendors, agents of vendor, and customers. These firms have successfully implemented the concept of supply chain integration with spectacular results after they recognize and manage the integration challenges of supply chain. Research question CHALLENGES AND OBSTACLES OF SUPPLY CHAIN INTEGRATION Methodology After extensive reading to the supply chain integration challenges that the literature mentioned in different resources we found that the researches try to enumerate the challenges from one perspective The researchers in the previous direction discuss the challenges from three perspectives: Technical perspective Managerial perspective Relationships perspective they found that the previous direction did not include the following issues: No paper was able to present all Supply Chain integration challenges. We are going to integrate all challenges in a single comprehensive source, we believe that this integration will provide the following benefits: Decrease the complexity of the challenges. Priorities these challenges effectively. Better allocate resources for managing Challenges and findings Introducing a comprehensive source that contains all the challenges mentioned in the literature. Costs of implementation. Loss of Trust.

Unable to Adapt to Change. Losing the Inimitability of Product. Unnecessary Liability. Lack of Security. Uneven Partner benefit. Increased Independences. Keeping Up With the change in Expectations The challenge in business process improvement is the processes must be coordinate between all firms in the vale chain to achieve improve performance and service. Integrated must happen between decision making and business process layers which is occurs whenever human operator (or software agent) makes a decision that change the flow of work through a process. Business process integration hurt by compatibility challenges in a technical, operational, strategic, and political/legal environment. CONCLUSION It was necessary to review the literature on the supply chain integration challenges; this necessitated an exploration of the nature of the SC network, the benefits of SC integration. At the same time, it was important to explore the challenges and obstacles of SC network integration. All of this was done with the aim of satisfying the primary purpose of the study which was the integration the SC integration challenges. Scope for further research Proving or disproving the existence of this relation between the business domain and the kind of challenges is beyond the scope of this research and it is considered as a future research.

Effect of Enterprise Resource Planning on Supply Chain Management in Iranian Companies Abbas Sheykhan, Jafar Tarokh, Sajad Gheitasy

ABSTRACT Enterprise Resources Planning (E.R.P) and Supply Chain Management (S.C.M) show the importance of operational managers and IT manager to informational technology and investment, and experts and educated people meet it in order to improve commercial operations. The aim of this research is to make necessary field for recognize, benefits and effects of Enterprise Resources Planning on company merit in supply chain management section. In order to define this relation by using structure model 9 hypothesis exist; result of structural model clearly shows that there is a close relationship between Enterprise Resources Planning systems and company merit in supply chain management section, related data of Iranian companies gathered via questionnaire and interviews and expert research. Results practically

shows that using Enterprise Resources Planning system on company merit, effect on supply chain management section and causes efficiency in system. RESEARCH QUESTION AND HYPOTHESIS model include three independent variables and 3 dependant variables that search about effect of Enterprise Resources Planning advantages on factory merit in supply chain management section that based on above model include 9 hypothesis: 1- Enterprise Resources Planning operation advantages on merit of company have positive effect in supply chain management section in solidify processing 2- Enterprise Resources Planning operation advantage on company merit in supply chain management section in solidify relationship of customer has positive effect 3- Enterprise Resources Planning operation advantage on company merit in supply chain management section in planning and process control has positive effect 4- Advantage of business and management process Enterprise Resources Planning on company merit supply chain management section for solidify operation process has positive effect. 5- Advantage of business and management process of Enterprise Resources Planning company merit in supply chain management section in of customer relation has positive effect 6- Advantage of management and business process of Enterprise Resources Planning on company merit in supply chain management section in solidify control process has positive effect 7- IT strategic planning in Enterprise Resources Planning on company merit in supply chain management section in solidifies operation process has positive effect. 8- IT strategic planning in Enterprise Resources Planning on company merit in supply chain management section in solidify customer relation has positive effect 9- IT strategic planning in Enterprise Resources Planning on company merit in supply chain management section in solidify control process has positive effect. METHODOLOGY Statistical society in this research are: experts and managers of Iranian Company that include: IRAN KHODRO, SAIPA, BAHMAN MOTOR, ARAK MASHIN SAZI, KOMBAIN, VAGONPARS, ESFAHAN STEEL COMPANY. In this research sample mass calculate by the following relation 5q n 15q n: sample mass q: number of question in questionnaire The number of question is 40, the least number of samples must be between 200 and 600 and according to adviser view and hey article 280 questionnaire distributed. 250 questionnaire return. In this questionnaire use 5 choice spectrums of LIKERT

In this research in order to study about relationships a many model parts use structural equation finding model also researcher for model finding of structural equation use in order to agent analysis. By using Lisrel software all of hypothesis analyzed structural model that describe relationship among variables. Suggestion and conclusion First, fourth and seventh hypothesis confirmed and show that efficiency of company in supply chain management section and in operational process are impressed from Enterprise Resources Planning advantages such as business process and management and IT strategic planning. These result could be interpret that items improve ability to supply chain management section and operational process. second, fifth and eighth hypothesis confirmed and show that three related plan effect on Enterprise Resources Planning in increasing company merit in supply chain and solidify customers. Customer absorbtion is an ability that made a potential for company to satisfy customer needs and this affair require knowledge about customer needs, great number of customers that need services or service section that company is weak in it, these are lead to making third party. third and ninth hypothesis confirmed. These hypothesis shows that merit of company is supply chain management section in control processing and planning effect directly from operational processing and IT strategic planning, ability of company in supply chain management field and in planning and control processing need informational system that could secure vast spectrum of operational activity of market. Successful product chain depends on exact exchange of information among customers and good producer and representing goods. Sixth hypothesis rejected in this research shows that business process advantage dont effect on enterprise resource planning rise resource planning on company merit in supply chain management section in solidify planning and control process the research the reason is weak cooperation of some company with commercial partner that is because of law barrier (prohibition) that made its relationship weaker. Conclusion After distribution and collecting questionnaire and their analysis in Iranian companies come to this subject that the main aim of this research is to prove relationship between E.R.P on S.C.M and efficiency of company in production management field from nine hypothesis, 8 of them were meaningful and effect of E.R.P on S.C.M was positive and only sixth hypothesis shows non effectiveness of business process advantages on company merit in S.C.M section in solid planning and control process also following titles show effect of E.R.P advantages on merit company in S.C.M.

The roles of information technology in supply chain management Jaana Auramo, Aimo Inkilinen, Jouni Kauremaa, Katariina Kemppainen, Mikko Krkkinen, Sanna Laukkanen, Sami Sarpola, Kari Tanskanen

ABSTRACT The use of information technology (IT) is considered a prerequisite for the effective control of todays complex supply chains. Despite the acknowledged importance of the use of IT in supply chain management (SCM), the number of empirical studies assessing the use of IT in the supply chain context is limited. Based on empirical data from 16 Finnish industrial and service companies this paper presents a classification of the ways in which companies use IT in SCM, and examines the drivers for these different utilization types. According to the findings of this research, the use of IT for SCM purposes can be divided into 1) transaction processing, 2) supply chain planning and collaboration, and 3) order tracking and delivery coordination. The findings further suggest that the drivers between these three uses of IT in SCM differ. RESEARCH QUESTION Different use of IT in SCM and its classification and influence on the supply chain? Methodology A multiple case study approach was chosen for the purposes of this study. We collected data from 16 Finnish industrial and service companies in autumn 2004. The companies were selected using the approach of purposive sampling (Lincoln and Guba, 1985). Our objective was to include companies employing a variety of inter-organizational IT integration mechanisms and representing different business environments in the sample. Both qualitative and quantitative data were gathered using personal interviews as well as questionnaire. The questions for the interviews and the questionnaire were designed concurrently so that together they cover both the IT solutions employed by the companies their SCM practices and the essential characteristics of the companies and their business environments. The interviews were semi-structured in nature, lasting 2 hours in average. The typical composition of participants in the interviews included two to three interviewers and one to three company representatives. As a result, a total of 33 company representatives participated to the 16 interviews conducted. Analytical and modeling research This stream of research aims to measure the impacts of information sharing between supply chain partners. This research addresses the operations of small-scale supply chains. These studies have found that typically the sharing of demand information in supply chains increases the performance of the supply chain by increasing availability and reducing inventory related costs. Empirical studies Two streams of empirical studies on the use of IT in SCM can be identified. The first stream focuses on a specific technology or application area, and the second stream studies the application and benefits of IT in general. In the research focusing on specific technologies or application areas, there exists a distinct body of research on the adoption factors and impact of Electronic Data Interchange (EDI) (see e.g. Iacovou et al., 1995; Mukhopadhyay et al., 1995; Tuunainen, 1998). Here, for example cost reduction objectives (Mukhopadhyay et al., 1995) and volume of transactions between supply chain partners (Tuunainen, 1998) have been associated with the adoption of EDI links. Further, for example, the use of Extended Markup Language (XML) for supply chain integration has been studied.

ANALYSIS The first construct, types of IT use in SCM, refers to the ways in which companies employ IT for the purposes of SCM. Based on prior research discussed above, three different types of IT use in SCM transaction processing, supply chain planning and collaboration, and order tracking and delivery coordination were identified and chosen to represent the first construct. The first type of IT use, transaction processing stands for the use of IT for increasing the efficiency of repetitive information exchanges between supply chain partners. In this type of IT use the exchanged information is typically related to such tasks as order processing, billing, delivery verification, generating and sending dispatch advices, and producing order quotes. The second type of IT use, supply chain planning and collaboration, represents the use of IT for sharing planning-related information such as demand forecasts and other demand information, inventory information, and production capacity information, with the intention of increasing the effectiveness of the supply chain. Finally, the third type of IT use in SCM, order tracking and delivery coordination, refers to the monitoring of individual orders or shipments, which may consist of components or final products, with the aim of coordinating their delivery or conveying timely information of their location. This kind of grouping and cross-case analysis were performed for the different uses of IT that are transaction processing with customers / suppliers, supply chain planning and collaboration with customers / suppliers, and order tracking and delivery coordination with customers / and suppliers. CONCLUSION Transaction processing Most of the case companies, 10 out of 16 used IT to process transactions with their suppliers. Eight of the case companies in turn, used IT to transaction processing with their customers. As expected, reduction of manual work and costs, improvement of information quality, speeding up of information transfer, and volume of transactions were found to drive the use of IT for transaction processing. Supply chain planning and collaboration The use of IT for supply chain planning and collaboration was more limited in our sample than the use of IT for transaction processing. This result supports the earlier findings on the sharing of planning information (Kemppainen and Vepslinen, 2003; Kauremaa et al., 2004). Less than half of the companies used IT for supply chain planning and collaboration with their suppliers, and three of these companies applied IT for this purpose also with their customers. Order tracking and delivery coordination Five companies in our sample utilize IT systems in order tracking and coordinating the progress of orders or deliveries or in providing this information. Furthermore, findings suggest that the drivers between the three uses of IT in SCM differ. As expected, reduction of manual work and costs, improvement of information quality, speeding up of information transfer, and volume of transactions were found to be the drivers for the transaction processing role of IT in SCM. In addition, the continuity of the business relationship was found to drive this use of IT. The use of

IT in supply chain planning and coordination, in turn, was found to be driven by the implementation of cross-organizational processes, most often the VMI system.