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Measuring the benefits of ERP on supply management maturity model: a “big data” method

Yung-Yun Huang (Department of Operations Research, North Carolina State University, Raleigh, North Carolina, USA)
Robert B Handfield (Poole College of Management, North Carolina State University, Raleigh, North Carolina, USA)

International Journal of Operations & Production Management

ISSN: 0144-3577

Article publication date: 5 January 2015

Abstract

Purpose

The purpose of this paper is to investigate the effects of implementing enterprise resource planning (ERP) systems and the selection of ERP vendors on supply management performance for Fortune 500.

Design/methodology/approach

The paper adopts the supply chain maturity model adopted by Gupta and Handfield (2011) and used publicly available information such as articles, research report, newspapers to develop objective maturity ratings for four key indicators – strategic sourcing, category management, and supplier relationship management.

Findings

The analysis results suggest ERP users are more mature than non-ERP users in three key indicators: strategic sourcing, category management, and supplier relationship management. Moreover, SAP ERP users are more mature than non-ERP users in strategic sourcing, category management, and supplier relationship management.

Research limitations/implications

This study does not account for the longitudinal performance of ERP systems, nor does it account for differences between organizational scope of ERP deployment, global reach, or implementation duration. The authors also did not include other measures of supply chain performance outside of the procurement area. These factors could provide further insights to supply chain performance, and will be an interesting topic for future research.

Practical implications

This study provides an extensive analysis of how the deployment of ERP systems and the selection of ERP vendors can benefit a company’s supply chain performance. This information is valuable for companies that are considering adapting an ERP system.

Originality/value

This paper uses innovative an maturity assessment rating approach with publicly available resources to measure supply management performance across different companies. This method is novel and provides valuable insights to how ERP systems and their vendors’ impact supply chain management performance.

Keywords

Citation

Huang, Y.-Y. and Handfield, R.B. (2015), "Measuring the benefits of ERP on supply management maturity model: a “big data” method", International Journal of Operations & Production Management, Vol. 35 No. 1, pp. 2-25. https://doi.org/10.1108/IJOPM-07-2013-0341

Publisher

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Emerald Group Publishing Limited

Copyright © 2015, Emerald Group Publishing Limited