Chapter 1-Introduction: 1. Background of The Study
Chapter 1-Introduction: 1. Background of The Study
Chapter 1-Introduction: 1. Background of The Study
“Many case studies have been published, evidencing the benefits of SCM. If we recall
the industrial evolution process and emergence of SCM, it is learnt that organization’s
survival and subsequent growth came from functional approach to organization. If we
considered various function which encompasses into SCM viz. stores, purchase, logistics,
assets management etc. deals with wealth of organization in some or other form. It has great
leverages on the cost and expenses of an organization which has bearing at the bottom line.
Looking at the perianal nature of the function, SCM is been considered as one of important
function in an organization which drives and contributes to its profitability (Shang & Seddon,
2007). The sole purpose of business is to generate reasonable profit. Recent trend in industry
shows that SCM can add on profit if managed professionally. Taking this hypothesis forward
for testing in industry. It is opted to test in FMCG (Fast Moving Consumer Goods) area”
(Kelly, Holland, & Light, 2000).
“SCM professionals are one of the important resources to drive the system. As a
result; today’s supply chain manager owes his success or failure purely to the possession or
lack of certain key skills. There are several article which describes what these skills are, how
one can acquire them, and how they can make one more effective supply chain manager”
(Materials Management Review, 2013).
“Information technology solutions that are popular among supply chain and logistics
managers are supply chain management (SCM) software and enterprise resource planning
(ERP) software. Both of these software solutions are used in supply chain management, and
while there are similarities between the two, there are also some important differences. A
supply chain management software solution is one that is designed to automate the planning
aspects of managing the supply chain, the logistics aspects, or both” (Chang, Cheung, &
Cheung & Yeung, 2008).
“SCM solution like RFID, Radio Frequency Identification technology helps retailers
provide the right product at the right place and at the right time, which is an effective way of
maximizing profits. Radio Frequency Identification technology uniquely identifies every
container, item, case, and pallet that is manufactured, sold and shipped. This provides
increased visibility on every level of the supply chain and benefits everyone involved (Otieno,
2008). While Radio Frequency Identification already has been an enormous benefit to a
variety of different industries, one of the biggest drivers behind the technology in the United
States of America has been Wal-Mart. It has been estimated that by fully adopting Radio
Frequency Identification, Wal-Mart could save up to $8.35 billion each year. Roughly broken
up, that total consists of about $600 million via avoiding stock outs” (Levi, Kaminsky, &
Levi. 2000).
CHAPTER 3 – RESEARCH METHODOLOGY
3. RESEARCH APPROACH
“The current research will use deductive research approach as the basic methodology
of the research is to deduct the results from the available literatures that are available on the
impact of Enterprise Resource Management (ERP) on the Supply Chain Management (SCM).
The research study will help to draw the empirical results that will contribute in the future
studies and also the available literatures on the current genre of the study (Sarker & Lee,
2003). The research study will be more focused on the deducing results rather than inducing
the new results based upon the assumptions. The research study will also specifically focus on
the individual literatures based upon the Enterprise Resource Planning (ERP) and the Supply
Chain Management” (SCM).