Exploring the rationales for ERP and SCM integration

J. Michael Tarn (Department of Business Information Systems, Haworth College of Business, Western Michigan University, Kalamazoo, Michigan, USA)
David C. Yen (Department of Decision Sciences and Management Information Systems, Miami University, Oxford, Ohio, USA)
Marcus Beaumont (Department of Decision Sciences and Management Information Systems, Miami University, Oxford, Ohio, USA)

Industrial Management & Data Systems

ISSN: 0263-5577

Publication date: 1 February 2002

Abstract

Enterprise resource planning (ERP) and supply‐chain management (SCM) have been growing in popularity across various industries. New initiatives in resources planning, electronic commerce and extended supply chain drive the trend among corporations towards integrating strategic business applications. ERP systems assist enterprises in automating and integrating corporate cross‐functions such as inventory control, procurement, distribution, finance and project management. Through information sharing, SCM enables supply‐chain partners to work in close coordination to facilitate supplier‐customer interactions and minimize transaction cost. This research examines these two important concepts in terms of their evolution, functions and current development and further explores the rationales for their integration by analyzing the problems of ERP and presenting the solutions of SCM. This study is concluded with the imminent development of SCM and EPR systems and the industrial trend toward their integration.

Keywords

Citation

Tarn, J., Yen, D. and Beaumont, M. (2002), "Exploring the rationales for ERP and SCM integration", Industrial Management & Data Systems, Vol. 102 No. 1, pp. 26-34. https://doi.org/10.1108/02635570210414631

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MCB UP Ltd

Copyright © 2002, MCB UP Limited

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