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Article
Publication date: 12 October 2015

Björn Link and Andrea Back

The technological innovation of Software as a Service-Enterprise Resource Planning (SaaS-ERP) opens several relative advantages, which may be realized by choosing the…

Abstract

Purpose

The technological innovation of Software as a Service-Enterprise Resource Planning (SaaS-ERP) opens several relative advantages, which may be realized by choosing the proper operation mode. Thus a company looking for a new ERP system faces the question: When and under what conditions does it make sense to choose a SaaS-ERP system? The paper aims to discuss these issues.

Design/methodology/approach

The relative advantage criterion of the diffusion of innovation theory, derived as operation mode differences, determine the conditions under which SaaS- or On-Premise-ERP is preferable: a classification of all main systemic operation mode differences between SaaS and On-Premise for the more complex ERP systems is presented. The systemic differences were identified by analytic generalization using triangulation between a literature review and a multiple case study with four ERP producers.

Findings

The most significant decision factors between ERP operation modes are flexibility, customization, cost, and operation and maintenance. General strategies have been derived by bringing the theoretical reasons together with the operation mode difference criteria. Typical criteria for selecting SaaS-ERP are a lack of IT-capacity or capabilities, as well as high need for flexibility, due to business development, seasonality, growth, collaboration and/or expansion. On-Premise-ERPs should be selected if specific or strategic resources would be outsourced or when major customization is a need.

Research limitations/implications

Case research is limited in that it reveals only ERP producers’ view and omits outlying cases.

Practical implications

The findings implicate that ERP selecting customers should consider and expand their criteria for ERP selection by operation mode criteria.

Originality/value

The classification of the most essential operation mode differences allows, for the first time, ERP selecting customers to design selection strategies. ERP selecting companies should strategically favor the operation mode that best suits their respective organizational characteristics so as to obtain the best possible support from the ERP operation modes.

Details

Journal of Enterprise Information Management, vol. 28 no. 6
Type: Research Article
ISSN: 1741-0398

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Article
Publication date: 1 September 2005

S.C. Lenny Koh and Mike Simpson

The aim of this paper is to investigate how enterprise resource planning (ERP) systems could create a competitive advantage for small and medium‐sized enterprises (SMEs)…

Abstract

Purpose

The aim of this paper is to investigate how enterprise resource planning (ERP) systems could create a competitive advantage for small and medium‐sized enterprises (SMEs). The objectives of this study are to examine how responsive and agile the existing ERP systems are to change and uncertainty, and to identify the types of change and uncertainty in SME manufacturing environments.

Design/methodology/approach

A mixed methodology is used in this study, which involves literature review, questionnaire survey and follow‐up, in‐depth telephone interviews. An uncertainty diagnosing business model is applied to collect data from SME manufacturers in make‐to‐stock (MTS), make‐to‐order (MTO) and mixed mode (MM) manufacturing environments in a structured manner, and to analyse the effects of the underlying causes of uncertainty on product late delivery in MTS, MTO and MM manufacturing environments in SMEs. Some 108 enterprises responded (86 per cent response rate), of which 64 are SMEs. Analysis of variance (ANOVA) is carried out in SPSS to analyse the effects of the underlying causes of uncertainty on product late delivery in MTS, MTO and MM manufacturing environments in SMEs.

Findings

ANOVA results show that a different group of underlying causes of uncertainty significantly affects the product late delivery performance in MTS, MTO and MM manufacturing environments in SMEs. This study found that ERP could improve responsiveness and agility to change, but not to uncertainty. SMEs could create a competitive advantage by being more responsive to change in the ERP system before generating purchase and work order. ERP systems could not deal with uncertainty due to its stochastic and unpredictable nature. SMEs use a range of buffering or dampening techniques under uncertainty to be competitive in delivery.

Originality/value

It can be concluded that the application of the business model in SMEs that use ERP has provided useful knowledge about the significant underlying causes of uncertainty that affect product late delivery performance in MTS, MTO and MM manufacturing environments. Using this knowledge, similar SMEs could then prioritise the effort and devise suitable buffering or dampening techniques to manage the causes of uncertainty and hence prevent any changes to the ERP system.

Details

Journal of Manufacturing Technology Management, vol. 16 no. 6
Type: Research Article
ISSN: 1741-038X

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Article
Publication date: 6 March 2007

S.C. Lenny Koh and Mike Simpson

This paper seeks to show how enterprise resource planning (ERP) could create a competitive advantage for small‐ and medium‐sized enterprises (SMEs).

Abstract

Purpose

This paper seeks to show how enterprise resource planning (ERP) could create a competitive advantage for small‐ and medium‐sized enterprises (SMEs).

Design/methodology/approach

The main methods used in this study were questionnaires and interviews based on the application of an uncertainty diagnosing business model. Data were collected, using a questionnaire administrated to 126 SMEs, in the form of percentage contributions of the underlying causes of uncertainty (structured in the business model) on product late delivery. Analysis of Variance (ANOVA) was carried out in SPSS to analyse the effects of the underlying causes of uncertainty in SMEs.

Findings

ERP could create a competitive advantage in delivery for SMEs by being responsive and agile to change, but not to uncertainty. Results suggested that only a few features in an ERP system were used to deal with change due to uncertainty. It was found that SMEs generally use their ERP system to generate a plan for production and use it as a guideline. SMEs concurrently use a range of buffering or dampening techniques to tackle uncertainty for crating a competitive advantage in delivery.

Research limitations/implications

The application of the business model in SMEs has provided useful knowledge to make‐to‐stock (MTS), make‐to‐order (MTO) and mixed‐mode (MM) manufacturing enterprises in which underlying causes of uncertainty were significantly affecting their product late delivery performance.

Originality/value

This is a highly original application of an uncertainty diagnosing business model to SMEs using ERP systems.

Details

Benchmarking: An International Journal, vol. 14 no. 1
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 4 December 2017

Jose V. Gavidia

While the need for information systems is regularly highlighted in the humanitarian logistics literature, a detailed model of what such system would look like is missing…

Abstract

Purpose

While the need for information systems is regularly highlighted in the humanitarian logistics literature, a detailed model of what such system would look like is missing. The purpose of this paper is to highlight the need and advantages of enterprise resource planning (ERP) technology in humanitarian emergency logistics. The paper also proposes a model for the configuration, maintenance, operation, and improvement of the system.

Design/methodology/approach

This conceptual paper uses existing logistics and information systems literature to build the logical case for an integrated enterprise system for humanitarian emergencies, and to propose conceptual content and process models.

Findings

The problem of lack of coordination is reviewed, and a holistic solution is proposed through a structure and model of ERP systems technology to meet the specific requirements of humanitarian emergencies.

Research limitations/implications

As in any conceptual paper, a limitation of this paper is the lack of empirical validation of the proposed system. It also might be difficult to obtain the cooperation of multiple organizations. This research focuses on emergency humanitarian logistics, where effectiveness and speed have priority over simplicity or cost.

Practical implications

The model proposed in this paper links current efforts in humanitarian emergency coordination with existing supply chain information technologies, and is practically feasible both from the technological and organizational perspectives.

Social implications

Because of the critical, life or death nature of the problem, social and ethical implications of this research are broad, including the divergence of coordination in humanitarian vs commercial and military logistics, as well as inter-agency politics.

Originality/value

This paper is a bold but realistic attempt to take a holistic view of humanitarian logistics and design a system that would be effective, and calls humanitarian organizations worldwide to collaborate in its implementation.

Details

Journal of Humanitarian Logistics and Supply Chain Management, vol. 7 no. 3
Type: Research Article
ISSN: 2042-6747

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Article
Publication date: 1 March 2004

Jannis Kallinikos

Argues that the organizational involvement of large scale information technology packages, such as those known as enterprise resource planning (ERP), has important…

Abstract

Argues that the organizational involvement of large scale information technology packages, such as those known as enterprise resource planning (ERP), has important implications that go far beyond the acknowledged effects of keeping the organizational operations accountable and integrated across functions and production sites. Claims that ERP packages are predicated on an understanding of human agency as a procedural affair and of organizations as an extended series of functional or cross‐functional transactions. Accordingly, the massive introduction of ERP packages to organizations is bound to have serious implications that precisely recount the procedural forms by which such packages instrument organizational operations and fashion organizational roles. The conception of human agency and organizational operations in procedural terms may seem reasonable yet it recounts a very specific and, in a sense, limited understanding of humans and organizations. The distinctive status of framing human agency and organizations in procedural terms becomes evident in its juxtaposition with other forms of human action like improvisation, exploration or playing. These latter forms of human involvement stand out against the serial fragmentation underlying procedural action. They imply acting on the world on loose premises that trade off a variety of forms of knowledge and courses of action in attempts to explore and discover alternative ways of coping with reality.

Details

Information Technology & People, vol. 17 no. 1
Type: Research Article
ISSN: 0959-3845

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Article
Publication date: 1 April 2004

Siau Ching Lenny Koh and Sameh Saad

This paper discusses the experimental work in modelling uncertainty under a multi‐echelon enterprise resource planning (ERP)‐controlled manufacturing system. A new method…

Abstract

This paper discusses the experimental work in modelling uncertainty under a multi‐echelon enterprise resource planning (ERP)‐controlled manufacturing system. A new method known as part tagging (Ptag) is successfully implemented in a material requirements planning (MRP) planning architecture, which is used to generate a planned order release (POR) schedule for controlling purchase and manufacture operations in a batch manufacturing system using simulation. One of the most important findings is that parts tardy delivery (PTD) is a more responsive performance measure compared with finished products tardy delivery (FPTD); therefore it is recommended that PTD should be measured to reveal the unmasked effects of uncertainty. The main conclusion and implication from this experiment are that an ERP‐controlled manufacturing enterprise should diagnose for uncertainty in a way that produces significant effects on delivery tardiness, so that reduction of their levels will significantly minimise tardy delivery.

Details

Journal of Manufacturing Technology Management, vol. 15 no. 3
Type: Research Article
ISSN: 1741-038X

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Article
Publication date: 1 September 2006

Patrik Jonsson and Stig‐Arne Mattsson

The paper seeks to describe the state‐of‐the‐art, reasons for selecting various material planning methods, and modes of applying methods for initiating inventory…

Abstract

Purpose

The paper seeks to describe the state‐of‐the‐art, reasons for selecting various material planning methods, and modes of applying methods for initiating inventory replenishment of purchased items. It also identifies trends from 1993 to 2005.

Design/methodology/approach

Empirical survey data are collected from Swedish manufacturing companies in 1993, 1999 and 2005. The MRP, re‐order point, fixed interval ordering, run‐out time, and Kanban methods are studied.

Findings

MRP is the most commonly used method and its position has strengthened since 1993. A common way of determining parameters such as order quantities and safety stocks is to use judgment and experience. Parameters used in material planning methods are reviewed relatively infrequently. The planning frequency has increased, with daily planning now being typical.

Research limitations/implications

The major limitation is that different data collection techniques were used in 1993 compared with 1999 and 2005. An important research implication is that the state‐of‐the‐art applications differ from theoretically appropriate application modes. The trends are towards less appropriate modes among the most widespread applications.

Practical implications

The frequency of reviewing planning variables is relatively low in industry, and should in most situations be increased. The paper implies that more user‐friendly software applications need to be developed and implemented. It could serve as guidelines when designing and developing training and education programs and function as a benchmark.

Originality/value

The paper provides a longitudinal state‐of‐the‐art description of materials planning usage and identifies application modes with positive and negative performance impact.

Details

International Journal of Operations & Production Management, vol. 26 no. 9
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 1 March 2006

Ching‐Chow Yang, Wen‐Tsaan Lin, Ming‐Yi Lin and Jui‐Tang Huang

Facing the competition pressure of internationalization and diversification, the semiconductor industry of Taiwan has to increase the activation/utilization rate of…

Abstract

Purpose

Facing the competition pressure of internationalization and diversification, the semiconductor industry of Taiwan has to increase the activation/utilization rate of machines, enhance flow speed and values, cut down delivery and reduce costs in an efficient way in reaction to a shortening product life cycle and the global market requirements. As a result, introduction of ERP has become a critical factor of enhancing competitiveness. The purpose of this study is establish a systematic evaluation and improvement mechanism to locate the risk priority number (RPN) of implementation items via failure mode and effects analysis (FMEA) for semiconductor related industries in Taiwan while introducing ERP.

Design/methodology/approach

A standardized system introduced performance matrix based on the performance evaluation matrix (PEM) will be established in accordance with the locations of severity (S), occurrence (O) and detection (D) and the three RPN indices, in the PEM. Performance levels will be assessed and the performance improvement strategy introduced by the system will be formulated. Finally, items falling within the non‐appropriate performance zone will be specified through the quality function development (QFD) method.

Findings

From the results of the case study, the proposed systematic evaluation and improvement on the performance of introducing ERP for the semiconductor industry in Taiwan can be conducted in an efficient way.

Practical implications

All that the management needs to do is to correspond to the positions of these RPN indices of implementation items on the performance matrix. Performance levels will be assessed and the performance improvement strategy introduced by the system will be formulated.

Originality/value

The PEM is demonstrated to be suitable to define the best countermeasure can be sought to serve as a reference for the semiconductor related industries in Taiwan to introduce ERP.

Details

International Journal of Quality & Reliability Management, vol. 23 no. 3
Type: Research Article
ISSN: 0265-671X

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Book part
Publication date: 1 November 2007

Irina Farquhar and Alan Sorkin

This study proposes targeted modernization of the Department of Defense (DoD's) Joint Forces Ammunition Logistics information system by implementing the optimized…

Abstract

This study proposes targeted modernization of the Department of Defense (DoD's) Joint Forces Ammunition Logistics information system by implementing the optimized innovative information technology open architecture design and integrating Radio Frequency Identification Device data technologies and real-time optimization and control mechanisms as the critical technology components of the solution. The innovative information technology, which pursues the focused logistics, will be deployed in 36 months at the estimated cost of $568 million in constant dollars. We estimate that the Systems, Applications, Products (SAP)-based enterprise integration solution that the Army currently pursues will cost another $1.5 billion through the year 2014; however, it is unlikely to deliver the intended technical capabilities.

Details

The Value of Innovation: Impact on Health, Life Quality, Safety, and Regulatory Research
Type: Book
ISBN: 978-1-84950-551-2

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Article
Publication date: 4 July 2016

Alexander Hübner, Johannes Wollenburg and Andreas Holzapfel

Online retailing changes all retail systems significantly. The growing importance of online sales requires the creation of new fulfillment models. The purpose of this…

Abstract

Purpose

Online retailing changes all retail systems significantly. The growing importance of online sales requires the creation of new fulfillment models. The purpose of this paper is to investigate how retailers develop from separate multi-channel (MC) to integrated omni-channel (OC) fulfillment. OC retailing has an integrated perspective, with seamless interactions between online and bricks-and-mortar channels.

Design/methodology/approach

More than 60 internationally active retailers and experts from Germany participated in an exploratory survey. With a response rate of 40 percent the authors achieved the goal to adequately depict the German MC and OC retail market. It is currently the largest empirical study of MC and OC fulfillment.

Findings

It is the first study to comprehensively analyze the logistical development options open to retailers for integrated fulfillment. The authors discuss the conceptual development options and formulate propositions for an advanced OC fulfillment approach. OC retailers aim to pool their organizational units for fulfillment via different channels. Retailers with multiple channels develop their warehouse systems toward channel-integrated inventory enabling flexible and demand-driven inventory allocation. Retailers with channel-integrated inventory also organize their picking procedures in one common zone. The higher the outlet density, the more it becomes beneficial for retailers to introduce pick-up services.

Research limitations/implications

The research is based on insights from retailers and experts from companies based in Germany.

Practical implications

The findings provide an insight into designing OC fulfillment and distribution structures. The concepts themselves, archetypes, challenges and development paths are analyzed. Identified logistics levers can be adjusted to pinpoint the steps required to advance integration.

Originality/value

The authors contribute by deriving propositions and a framework for transitioning from basic MC to integrated, extended OC logistics. Because this research area is still comparatively young, the authors take a more comprehensive, exploratory view of OC fulfillment.

Details

International Journal of Physical Distribution & Logistics Management, vol. 46 no. 6/7
Type: Research Article
ISSN: 0960-0035

Keywords

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