ERP Systems’

Final Year Project

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Capabilities for
Supply Chain
Management
Performance

Arham Ahmed Siddiqui

Commecs Institute of Business and
Emerging Sciences | BBA - VIII
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Letter of Transmittal

TO: SIR.KAMRAN RAJPUT  

FROM: Arham Ahmed Siddiqui 

DATE: July 24, 2017

SUBJECT: ERP system’s Capabilities for Supply Chain Performance

Management

Respected Ma`am,

All praises and thanks to Almighty Allah, who is the Lord and Creator of this
universe and by whose power and glory all good things are accomplished. He is the
most merciful, who bestowed on me the potential, ability and an opportunity to work
on this thesis.

I am especially thankful to SIR. KAMRAN RAJPUT who helped me from end to

end in this project. He guided and meticulously explained what I needed to do and
played an important role in helping me in carrying out this task. I really appreciate
each moment when he gave me the push in order to motivate me to complete this
task.

Yours Sincerely
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Chapter Chapter Name Page NO

s
1. Introduction 2
1.1 Background
1.2 Problem Statement
1.3 Research Objective
1.4 Research Questions
1.5 Significance of Study
1.6 Limitations
2 Literature Reviews 4
2.1 Empirical Studies
2.2 Theoretical Framework
2.3 Research Model
3 Methodology 10
3.1 Research Approach
3.2 Research Purpose
3.3 Research Design
3.4 Data Source
3.5 Target Population
3.6 Sample Size
3.7 Data Collection Technique
3.8 Population Framework
3.9 Time Horizon
3.10 Statistical Technique
4 Result & Estimation 12
4.1 Data Screening (Missing Value Analysis)
4.2 Univariate outliers
4.3 Responded Demographics
4.3.1 Firm Size
4.3.2 Designation
4.4 Reliability Testing
4.5 Factor Analysis
4.6 Regression Analysis
4.6.1 Model Summery
4.6.2 Determining the Overall Significance of the Model
4.6.3 Observation on the signs of the co-efficient
4.6.4 Results Summary
5 Conclusion & Recommendation 17
5.1 Conclusion
5.2 Recommendation
5.3 Future Recommendation
6 Reference 18
7 Appendix 19
8 Tables 21
Table of Contents

Chapter 1: Introduction
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1.1. Background

Performance Management represents the final element in the Supply Chain Management cycle but
should not be seen in separation as the observing processes often occur parallel with all the other
elements in the Supply Chain Management cycle. The process consists of a reviewing analysis to
determine whether the proper process was followed and whether the desired results were attained.

An effective Supply Chain Performance Management should be established and applied in

accordance with departmental policies and procedures and related governmental requirements.
Broadly speaking, Supply Chain Performance Management can be measured in terms of the
following: Suppliers of goods and services, The Supply Chain Management Unit and Service
Delivery Realization and or Value for money.

Every company focuses on certain tools which can help to cut the cost and enhance the revenue.
Companies further focus to increase of assets which can be done by reducing other outlays. Supply
chain processes consumes to much cost as compared to overall expenses in the organization,
almost 32% of total expense has allocated to supply chain operations. Companies usually focuses
to enhance the supply chain performance in order to enhance their production which can increase
the total revenue.

ERP is mostly referred to as a category of enterprise management software, usually a suite of

embedded applications that an organization can use to gather, store, manage and understand data
from these many business activities.

ERP provides an integrated, continually updated view of core business processes by using
common databases maintained by a database management system. ERP systems track profitable
cash resources, raw supplies, production capacity and the status of commercial promises: orders,
purchase orders and payroll. The applications that make up the system share data in many
departments (manufacturing, purchasing, sales, accounting, etc.) that provide the data. ERP aids
the flow of information between all business purposes and manages networks with external
investors.

Enterprise system software is a multi-billion-dollar industry that produces components that support
a variety of business functions. IT investments have become the largest category of investment in
US businesses over the past decade. Although the first ERP systems are focused on large
enterprises, small businesses are increasingly using ERP systems.

Enterprise Resource Planning System helps to minimize the operational costs and also saves other
overhead costs which incurred within the organization; ERP System also reduces the Bullwhip
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Effect and integrates the entire department to operate as one. Capabilities of ERP system play an
effective role and reduce the paper usage and lead time.

The aim of this research is to identify in which factors Capabilities of ERP impacts supply chain
performance management. This research may help the organizations to save their cost my using all
the capabilities in appropriate manner.

1.2. Problem Statement

 To inspect this problem statement there are some objectives which are set to complete the
research
 To find the relation between the ERP System and Supply Chain Management Performance.
 To analyze the cost reduction and time saving opportunities.
 To find the reduction in variation.
 To find out the paper cost reduction.
1.3. Research Objective

The objective of the research is to provide the insight into the capabilities and the benefits of ERP
System to those companies which are highly concern about the Supply Chain Performance
Management in both manufacturing and services sectors by using the capabilities of ERP system,
so they can reduce their operational cost and will be able to invest in their business development

1.4. Research Question

1. “Does Capabilities of ERP System effect on Supply Chain Performance Management ?”

1.5. Significance of the Study

This research willhelp the Businessorganization to enhance their performance, all the variables
plays an important role for supply chain management of the companies which are implementing to
gain competitive advantage, but sometimes organizations find difficulty in choosing the strategy/
concept which suits their organization and which result in improvement, this study will help
organizations to adapt the most effective ERP System’s Capability to meet their business
objectives.

1.6. Limitations

The upshot of research has limitations of how Supply Chain Performance Management and
capabilities of ERP System can reduce the cost of the companies. But, there are some more things
on which research could be done i.e. Effect of Supply Chain Performance Management and ERP
System on Customer Satisfaction.

Chapter 2: Literature Reviews

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2.1 Empirical Studies

Galin,(2003), he discussed ERP and how an organization can benefit from it. He said the research
is focused on the most common features of today's ERPs and their classification. The main
advantages and disadvantages of different authors were summarized and an overview of the
implementation of the ERP was mentioned with a comprehensive list of Critical Success Factors
(CSFs). In conclusion, IS and ERP in particular, implementations are high-risk projects that
require appropriate management. Organizations that plan to implement ERP must learn to identify
critical issues that affect the implementation process and when they are able to process them
effectively to ensure that the promised benefits can be realized and failures Potentials can be
avoided. Future research can be done by analyzing the gap between ERP theory and their practical
use and actual implementation.

Moon (2007),Numerous zones for future research appear promising. One zone is ERP education.
After some years of active ERP learning through some vendor-funded college programs, important
experience had to be collected. It could be a time for teacher-researchers to reflect on their
experiences and start publishing for the common good. Another exciting area is to assess the
current state of the ERP with international collaboration. Most articles that attempt to capture
differences between different cultures or nations are limited to one or two of these. On a large
scale, studies of concurrent examination could generate useful information on this subject. The
concept of ERP seems to be developing and developing. It will be useful to study topics such as
how companies using the ERP system perceive these trends, how they will cope with changes,
what tools, methodologies, models are useful in their expansion efforts, and so on.

G. Buonanno, Faverio, Pigni (2005), Their work and efforts contribute both to the research and
practice of ERP in SMEs. In practice, their paper highlights past and recent challenges, challenges
and successes that can guide consultants, suppliers and clients in their future endeavors. For
research, the organization of the literature in the phases of the ERP life cycle can help them to
identify the subjects, results and gaps discussed in each phase of interest. Finally, we provided our
observations and future research suggestions that would enrich our knowledge in this area.

Bond(1999), An ERP implementation is not merely a ‘‘computer project’’, it is strategic and must
be approached as such. ERP systems are integrated applications with an impact on the entire
organization. They have presented a review of recent work on ERP systems, investigating risk
factors in the ERP life cycle. The different approaches were compared from a risk management
point of view to highlight key risk factors and their impact on projects.
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Samadi and Kassou(2016) Information technology has been shown to have a direct and indirect
impact on supply chain performance, but there are many issues that need to be addressed in order
to study the relationship between these two complex components and meet the needs of managers
and researchers. Initial research resulted in the collection of 320 documents, 33 of which were
selected for review in this work, which are divided into three thematic groups: Critical Success
Plants, IT Attributes and Mediator Factors Between ERP and The performance of the supply chain.
The main implication of this research for managers and practitioners is that it is necessary for
companies to invest in the ERP system to improve supply chain performance, but before they have
to invest in the development of Some critical success factors and develop certain characteristics of
the supply chain that allow them to take advantage of the performance advantages of ERP
capabilities.

Lee, Kim and Kim (2014), This article reviews the importance of supply chain performance
management and investigations separate and disconnect efforts to design and improve SCPM
systems. They provide a comprehensive framework for designing a strategy-aligned, focused
process, and incorporates evidence-based comments with human judgment into the metrics
definition phase. Future research includes validating the proposed framework with industry
experts, developing mathematical models to evaluate the interaction of metrics from a multi-
objective prospective analysis, and refine the details of the data model for the Model and
component of the data warehouse.

Fawcett, Wallin, Allred, Fawcett and Magnan(2011) ERP implementation is a long and difficult process
for companies. The difficulties and high failure rate in implementing ERP systems have been
widely cited in the literature. There are several critical success factors which are generally agreed
in the literature for a successful ERP implementation. These critical success factors are; top
management support, ERP teamwork and composition, business plan and vision of the project,
effective communication, well project management, expertise and knowledge of project champion,
appropriate business and IT legacy systems, change management program and culture, business
process reengineering and minimum customization, software development, continuous monitoring
and evaluating performance. Decision makers and managers have to take into consideration these
factors before making implementation. All these factors should be evaluated separately in order to
reach a successful implementation process.

Harrison and New (2002), The study has developed measures for the impact of ERP services on the
SCM competency model. Although validity and reliability checks have been carried out on the
measurements, it is still possible to improve. If we can use more measures for company skills
learned from software or consulting companies instead of self-reporting by companies, the results
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will be more compelling. The limitation is that it seems that most consulting companies do not
keep records or have not traced or evaluated the performance of the company after the end of the
project. In addition, while the sample was composed of Taiwanese computer industry companies,
it might be preferable to collect data from other computer industry companies in other countries,
such as Korea, Singapore and China. As the impression of SCM is compound and involves a
network of companies elaborate in the effort of producing and bringing a final product, its whole
field cannot be addressed in a sole study. Future research may extend the scope of SCM practice
by considering additional constructs such as financial impact, global parameters and JIT / lean
capabilities, which were not included in this study.

(Bendoly and Schoenherr 2005), The future role of ERP systems can be much more critical than
the reasons for which they have traditionally been adopted. With the rapid emergence of a wave
after wave of new technologies, the availability of an effective infrastructure on which to build can
be one of the most important factors that enable and support the future competitive advantage. In
addition, lessons learned in the process of building this architecture can be valuable in paving the
way for technological innovations. This work has attempted to illustrate that the advantages of
ERP systems, beyond well-documented anecdotal evidence, are logically rooted in theory. More
precisely, the theory in the field of operations management seems to provide a particularly rich and
appropriate basis for taking into account the benefits introduced by the implementation of the ERP
system. Such a theory can serve as a channel for linking the presence of the infrastructure provided
by an ERP system with the efficiency of new information technologies.

Kellea&Akbulut (2009), The integrated transaction-based Enterprise Resource Planning (ERP)

software provides different tools that can support the integration of the supply chain, but at the
same time it has several features that hinders integration with business partners. We focus on
supply chain management inventory management issues in reviewing recent quantitative modeling
and organizational results available in the literature. We summarize the results of a detailed digital
analysis and sensitivity based on our previously published models for supply chain cooperation
and joint optimal order and shipment policies for the buyer and supplier. These outcomes can be
used in enterprise software to measure the possible monetary value of policy coordination,
promote cooperation, and minimize the total cost of the supply chain system. Our other objective is
to combine quantitative tools with organizational and management factors and integrate them into
a multi-level policy coordination framework.
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Kajikawa, Yoshikawa, Takeda, Matsushima(2001), Science and technology for renewable and
sustainable energy are essential for our future society and economy. To achieve the goal of
sustainable energy development, there is an increasing amount of research effort around the world.
The energy research planner needs to grasp the wider coverage of scientific and technological
research and make decisions on effective investment in promising and emerging technologies,
especially in limited circumstances. In this article, we follow emerging research areas in energy
research using citation network analysis. Our analysis confirms that fuel cells and solar cells are
increasingly used in energy research. We further study the detailed structure of these two areas by
grouping publications in these areas. Each reference group has characteristic research topics, and
there is a diversity of growth trends among the collections. Using the benchmark network analysis,
we can effectively and efficiently track emerging research areas among a stack of publications.

Esteves& Pastor (2004)The number of publications in the ERP systems' information systems
community seems small compared to the size of the enterprise they generated. The publications
identified in this article are from a small number of sources and are fairly recent. All major
conferences of the IS in 2000 have dedicated at least one track or mini track to ERP systems. This
study shows that the ERP researcher mainly focused on the problems associated with the
implementation phase of the ERP life cycle. Until now, the other phases were almost forgotten.
One reason is that the majority of organizations are in the implementation phase. Moreover, in
certain phases, namely acquisition and implementation, the strong intervention of consultants
makes access to information difficult. Although several ERP systems are on the market, most case
studies analyze SAP systems. Few studies and little research generalize the results to other ERP
systems.

Mashari and Mudimigh (2003), Many organizations have shifted from stand-alone commercial
information system applications to enterprise-wide integrated enterprise resource planning (ERP)
systems. The implementation of the ERP packages made it possible to reorganize the business
processes within and beyond the scope of the organization. In particular, SAP has been widely
implemented to create value-oriented business processes that allow for a high level of integration,
improve communication within internal and external networks, and improve decision-making.
While many organizations have reported dramatic improvements from the implementation of SAP,
others have had difficulty aligning R / 3 modules to other components and business systems. This
paper describes a case study of a phased implementation of SAP to reorganize the business
processes of a major manufacturer. The lessons in terms of the factors that led to the failure and
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their future implications are discussed in the light of the contrasting experiences of several best
practice firms.

Kappenman and Luck (2003), To determine whether data quality is greatly reduced by a high
electrode impedance, the electroencephalogram (EEG) was recorded simultaneously from low and
high impedance electrode sites during a strange task. Low-frequency noise was found to be higher
in high-impedance sites compared to low-impedance sites, especially when the recording
environment was hot and humid. Increased noise in high impedance sites has resulted in an
increase in the number of trials required to obtain statistical significance in P3 amplitude analyzes,
but this could be partially mitigated by high-pass filtering and High artifacts. The high-electrode
impedance did not reduce the statistical power of the N1 wave unless the recording environment
was hot and humid. Thus, the high impedance of the electrode can increase noise and decrease
statistical energy under certain conditions, but these effects can be reduced by using a cool, dry
recording environment and appropriate signal processing methods.

Bernroider, Wong &Lai (2010),This study discovers whether an enterprise resource planning
(ERP) implementation project mediates the relationship between dynamic pre-adoption capabilities
and improvements in ERP activity. The results of our field survey of large ERP adopters in Austria
suggest that the effects of the two selected dynamic capacities out of three depend on the
properties of the underlying organizational transformation project. Although the acquisition of
external information and IT governance capabilities are fully mediated by the performance of the
ERP implementation project, decision making has only a direct impact on the company's
capabilities. These results allow us to better understand the role of the implementation project for
ERP value creation and the different types of capacity relationships. We call for more research on
co-presence conditions related to the dynamic capabilities and performance of the IT
transformation project.

2.2Theoretical Framework:
Based on previous studies which were taken from different countries, which show the positive
impact of Capabilities of ERP System, in order find the impact of different variables on Supply
Chain Performance and then to analyze that to what extent each variable can affect the overall
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organizational performance of the organizations functioning in the environment of Pakistan

following hypothesis are constructed

 Ho : Capabilities of ERP positively impact Supply Chain Performance Management

 H1 : Capabilities of ERP negatively impact Supply Chain Performance Management

 H1(a) : Tracking negatively impact on Supply Chain Performance

 H1(b) : Data Entering negatively impact on Supply Chain Performance

 H1(c) : Recording negatively impact on Supply Chain Performance

 H1(d) : Reporting negatively impact on Supply Chain Performance

2.3 Research Model

Based on the constructed hypothesis the final model of the study is designed.
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Chapter 3: Methodology
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3.1 Research Approach

The main reason behind this research is to identify the impact and demand of ERP System for
Supply Chain Performance Management. We have prepared 25 operationalized questions to
identify the following:
i. The demand/sub-demand is supported within the standard version or by configuration.
Configuration refers to setting of parameters (Hedman, 2003) within the standard system
without re-programming (APICS, 2007).
ii. The demand is supported with customer-specific adaptations, known as customization
(APICS, 2007).
iii. The demand cannot be supported.
3.2 Research Purpose

The research purpose is a statement of "why" the study is being conducted, or the goal of the
study. The goal of a study might be to identify or describe a concept or to explain or predict a
situation or solution to a situation that indicates the type of study to be conducted.

The purpose of this report is to identify the importance of each variable with respect to Supply
Chain performance, this study will identify that how each variable will enhance the Supply Chain
Performance in the business environment Pakistan.

3.3 Research Design

Parahoo (1997:142) describes a research design as “a plan that describes how, when and where
data are to be collected and analyzed”

The survey method is used to measure the purposed model. The respondents were from the
different organization which are using ERP System includes textile, FMCG and automobile firms.
The respondents were from the Top level, Middle level and lower level of the organizations,
mostly are from middle.

3.4 Data Source

Data are collected from primary and secondary sources. Secondary data is collected from the past
studies and journals. Primary data is collected from close ended questionnaire from the
manufacturing industry in Karachi Pakistan.

3.5 Target Population

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The target respondents are the employees of supply chain department of textile, automobile.
FMCG’s firms.

3.6 Sample Size

The sample size 50 employees from top, middle and lower management of the manufacturing
firms supply chain department in Karachi Pakistan, mostly are from the middle management.

3.7 Data Collection Technique

Close ended structured questionnaire were to the different companies to gather the suitable data,
questionnaire was sent through emails, LinkedIn and research tool called Google Form. I also went
to the different universities and meet the students of MBA in supply chain management who are
working in different companies to fill the questionnaires.

3.8 Population Frame

The population of this study is limited to Karachi because all the 50 respondents are from the
different companies of Karachi.

3.9Time Horizon

Time to conduct this research is very limited, the data is collect in one month.

3.10 Statistical Technique

SPSS version 2.0 is use to analyze the gather data collected through the questionnaire from
different organizations.

Chapter 4: Result and Estimations

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4.1 Data Screening:

Univariate Statistics

Missing No. of Extremesa

N Mean Std. Deviation Count Percent Low High

Q1A 50 4.38 .923 0 .0 3 0

Q1B 50 4.48 .931 0 .0 3 0
Q1C 50 4.48 .814 0 .0 2 0
Q1D 50 4.48 .863 0 .0 3 0
Q1E 50 4.54 .734 0 .0 2 0
Q2A 50 4.58 .609 0 .0 0 0
Q2B 50 4.52 .735 0 .0 2 0
Q2C 50 4.44 .884 0 .0 2 0
Q2D 50 4.48 .863 0 .0 3 0
Q2E 50 4.38 .855 0 .0 3 0
Q3A 50 4.42 .810 0 .0 2 0
Q3B 50 4.48 .735 0 .0 2 0
Q3C 50 4.48 .677 0 .0 1 0
Q3D 50 4.42 .859 0 .0 3 0
Q3E 50 4.48 .931 0 .0 3 0
Q4A 50 4.40 .756 0 .0 1 0
Q4B 50 4.48 .789 0 .0 3 0
Q4C 50 4.48 .762 0 .0 1 0
Q4D 50 4.50 .647 0 .0 1 0
Q4E 50 4.46 .734 0 .0 2 0
Q5A 50 4.44 .787 0 .0 2 0
Q5B 50 4.58 .642 0 .0 1 0
Q5C 50 4.38 .855 0 .0 3 0
Q5D 50 4.36 .921 0 .0 3 0
Q5E 50 4.38 .725 0 .0 2 0

a. Number of cases outside the range (Q1 - 1.5*IQR, Q3 + 1.5*IQR).

The above table indicates that no missing values were found which serves as an indication of the reliability
of the data collected.

4.2 Univariate outliers

When looking for univariate outliers for continuous variables standardize values (z-score) can be
used for identification. For continuous variables univariate outliers can be considered standardized
cases that are outside the absolute value of +- 3.29. In this report there are no univariate outlier
found in the data of 50 sample size, no data value is higher than the given range +-3.29.

4.3 Responded Demographics

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4.3.1 Firm Size

Above chart shows thatthe sample size of 50, the firm size of 14 respondents is between 50-250
employees, 7 were from the firm size of between 251-250 employees and remaining 29 from
between above 500 employees firm.

4.3.2 Designation

From above table we clearly observed that the out 50 employees 4 were from the top position in
the firm, 27 from middle and remaining 19 were from lower position.

4.4Reliability Testing

Reliability Statistics

Cronbach's
Alpha N of Items

.973 25

Cronbach’s Alpha is a measure of internal consistency which means how closely related a set of
items are as a group. The alpha coefficient for the 25 items is .973, suggesting that items have
relatively high internal consistency. Most of the cases in social science researches the reliability
coefficient of .70 or higher is considered acceptable as we can clearly see in our situation .973 is
higher than .70 hence acceptable for the internal consistency in our research model.

4.5 Factor Analysis

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KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .889

Bartlett's Test of Sphericity Approx. Chi-Square 1124.903

df 300

Sig. .000

KMO and Bartlett’s Test is a measure of sampling adequacy that is recommended to check the
case to variable ratio for the analysis being conducted. In this case the KMO is .889 which is
higher than the acceptance ration i.e. 0.6 it is considered favorable for our research because pattern
of correlations is compact and the factor analysis is appropriate for these data.

Whereas Bartlett’s of Sphericity related to the significance of the study and shows the validity and
suitability of the responses collected for the addressed problem of the study. The value of Bartlett’s
test must be less than 0.05 for the validation and suitability of the responses, we can clearly see
that in our situation the sig value is 0.000 less than the range of 0.05 hence appropriate for these
data.

4.6 Regression Analysis:

1) Dependent Variable: Supply Chain Performance Management

Independent Variables: Tracking, Data Entering, Recording and Reporting

Model Summary
Model Summary

Change Statistics

Adjusted R Std. Error of R Square Sig. F

Model R R Square Square the Estimate Change F Change df1 df2 Change

1 .928a .860 .848 .24657 .860 69.352 4 45 .000

a. Predictors: (Constant), REPORTING, TRACKING, DE, RECORDING

b. Dependent Variable: SCPM

R square is called coefficient of determination. From above table we can see that 92.8% R suggest
strong relationship between Dependent variable (Supply Chain Performance Management) and
independent variables (Tracking, Data Entering, Recording and Reporting).

R square gives proportion of variation on the dependent variable explained by the independent
variables in the regression equation. This explains that around 86.0% of the variation in dependent
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variable is due to the independent variables selected in the model whereas rest of 14.0% varies due
to the factor or variables other than the selected independent variables.

Determining overall significance of the Model (f-test)

ANOVAa

Model Sum of Squares df Mean Square F Sig.

1 Regression 16.865 4 4.216 69.352 .000b

Residual 2.736 45 .061

Total 19.601 49

a. Dependent Variable: SCPM

b. Predictors: (Constant), REPORTING, TRACKING, DE, RECORDING

Referring above table we can clearly observe that that the significant value is <0.05, we have
enough evidence to reject the null hypothesis which indicates that one of the selected independent
variables (Tracking, Data Entering, Recording and Reporting) is significant to the dependent
variable (Supply Chain Performance Management).

Observation on the expected signs of thecoefficient

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) .213 .279 .764 .449

TRACKING .182 .128 .213 2.423 .027

DATA ENTERING .333 .146 .345 2.989 .008

RECORDING .164 .166 .241 2.787 .012

REPORTING .264 .154 .170 2.117 .030

Value of coefficient is the representative of the relationship between variables. Referring above
table the significance value of Tracking, Data Entering, Recording & Reporting is 0.027, 0.008,
0.012& 0.030 respectively which is less than alpha value 0.05, clearly indicates that there is a
positive relationship between all the independent variables (Tracking, Data Entering, Recording &
Reporting) and dependent variable (Supply Chain Performance Management).

Beta Represent the importance and weightage of each variable with respect to Supply Chain
Performance, from the above table it can be observe that Data Entering has the most significant
impact on Supply Chain Performance Management because beta of Data Entering is 0.345 which
is higher than the beta of other variables

Result Summary

Hypothesis Co-efficient Significance Outcome

H1: Tracking positively
impact on Supply Chain .213 .027 Accepted
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Performance
H2: Data Entering
positively impact on Accepted
.345 .008
Supply Chain
Performance
H3: Recording positively
impact on Supply Chain .241 .012 Accepted
Performance
H4: Reporting positively
impact on Supply Chain .170 .030 Accepted
Performance

Chapter 5: Recommendation & Conclusion

5.1 Conclusion
This study concludes that, organizations from different industries who are using ERP System in
Pakistan, has the significant impact of Tracking, Data Entering, Recording and Reporting on their
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overall Supply Chain PerformanceManagement, but as the main objective of this study is to find
the most important factor out of these technique, so in this report it is proved that Data Entering
has the most significant impact on Supply Chain Performance Managementand overall
performance of Organizational operations and make all operations quick.

5.2 Recommendation
Variables are selected on the basis of previous studies and we already know the positive impact of
Tracking, Data Entering, Recording and Reporting on Supply Chain Performance Management,
according to the main objective of this study, this report will give framework to firms in Pakistan
to get the awareness about the importance and impact of different capabilities and will help to
implement these capabilities according to their impact which can enhance their Supply Chain
Performance.

On the basis of result, I recommend the Organizations,Data Entering is the most important factor
which can impact their Supply Chain Performance positively and enhance their overall
performance.

As Data Entering has significant impact, it is also studied in this report that what impact other
three variable (Tracking, Recording and Reporting) have on Supply Chain Performance
Management, it is found that, Recording is most effectivevariable as far as Supply Chain
Performance Management is concern, in the result it can be observed that the significant value of
recording is less and p value and beta of recording is also higher than the other variable, it clearly
shows the high significance of recording with respect to supply chain performance management.

It is recommended to the manufacturing industry; they should focus on recording in order to

improve their supply chain performance management.

5.3 Future Recommendation

While this study has backed the literature and provided guidelines for improved practices, the
study was limited by time and scale. The variables discussed in this study are important but there
might be other variables which are not included in this study also have the importance and effect
the overall supply chain performance, it is recommended to future researcher to add more variables
and increase the sample size in order to generalize this research to whole industry.

Any future studies could also focus on a specific country other than Pakistan and study these
factors within a single industry as opposed to our study which researched the topic on hand at a
cross-industrial level.

Reference
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Operational Research, Volume 146, Issue 2, 16 April 2003, pp. 352-364.
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2. Samadi, E. and Kassou, I. (2016) The Relationship between IT and Supply Chain Performance: A
Systematic Review and Future Research. American Journal of Industrial and Business Management, 6,
480-495.
3. Moon, Y.B. (2007) ‘Enterprise Resource Planning (ERP): European Journal of Management and
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Appendix
Commecs Institute of Business & Emerging Sciences
21 | P a g e

Please circle your desired response: For example, if your

Strongly Disagree

Strongly Agree
response is 4 than make circle around 4 like this

Disagree

Neutral

Agree
4

1) Tracking
1 2 3 4 5
A) We use tracking at most in the organization
1 2 3 4 5
B) It helps us to reduce the cost
22 | P a g e

1 2 3 4 5
C) It enables us to diminish theft in our merchandise
1 2 3 4 5
D) We are able to track our supplier’s location
1 2 3 4 5
E) It helps to make our processes rapid and quick

2) Data Entering
A) Every person of the organization can enter data from 1 2 3 4 5
their department
1 2 3 4 5
B) It stores new data without duplication
C) It helps to reduce data redundancy while entering data 1 2 3 4 5
from more than one department
1 2 3 4 5
D) This can be edited
1 2 3 4 5
E) We regularly enter new data

3) Recording
1 2 3 4 5
A) We record our progress of all suppliers.
B) Our sales department records the customer demand in 1 2 3 4 5
ERP.
1 2 3 4 5
C) We give access to our supplier to record information.
D) We constantly monitor our recorded data of all 1 2 3 4 5
departments.
E) We usually recheck our recording in different 1 2 3 4 5
departments.
As per the requirement of my final project of Supply Chain Management, I am conducting a
research on “Is ERP SYSTEM CAPABILITIES FOR SUPPLY CHAIN PERFORMANCE
MANAGEMENT”. Kindly fill following questionnaire, your corporation shall be highly
obligated. I assure you that information gathered is only for academic purposes and shall only be
discussed in class room for learning

4) Reporting
1 2 3 4 5
A) We focus on regular reporting by every department
1 2 3 4 5
B) Our strategic vision emphasizes on day to day reporting
1 2 3 4 5
C) We specify the reporting standards of our ERP
1 2 3 4 5
D) Our organization receive authentic report through ERP
1 2 3 4 5
E) We can quickly get reports in detail from ERP

5) Supply Chain Performance Management

1 2 3 4 5
A) ERP helped us to reduce Bullwhip effect in Supply Chain
1 2 3 4 5
B) Regular reporting makes our supply fluent.
1 2 3 4 5
C) Capabilities of ERP reduced our operational cost.
23 | P a g e

D) Our supply chain decisions became more efficient and 1 2 3 4 5

effective.
E) It helped us to utilize all our resources and make our 1 2 3 4 5
production cost effective.

1) Please Indicate your Position in Organization.

Top ManagementMiddle Management Lower Management

2) Firm Size.

50 to 250 employees 251 to 500 employeesAbove 500 employees

23|page

Tables
Table 1

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

TRACKING 50 1 5 4.38 .923

TRACKING 50 1 5 4.48 .931
TRACKING 50 1 5 4.48 .814
TRACKING 50 1 5 4.48 .863
TRACKING 50 2 5 4.54 .734
DATA ENTERING 50 3 5 4.58 .609
DATA ENTERING 50 2 5 4.52 .735
DATA ENTERING 50 1 5 4.44 .884
DATA ENTERING 50 1 5 4.48 .863
DATA ENTERING 50 1 5 4.38 .855
RECORDING 50 1 5 4.42 .810
RECORDING 50 2 5 4.48 .735
RECORDING 50 2 5 4.48 .677
RECORDING 50 1 5 4.42 .859
RECORDING 50 1 5 4.48 .931
REPORTING 50 1 5 4.40 .756
REPORTING 50 2 5 4.48 .789
REPORTING 50 1 5 4.48 .762
REPORTING 50 2 5 4.50 .647
REPORTING 50 2 5 4.46 .734
SUPPLY CHAIN
PERFORMANCE 50 1 5 4.44 .787
MANAGEMENT
SUPPLY CHAIN
PERFORMANCE 50 2 5 4.58 .642
MANAGEMENT
SUPPLY CHAIN
PERFORMANCE 50 1 5 4.38 .855
MANAGEMENT
SUPPLY CHAIN
PERFORMANCE 50 1 5 4.36 .921
MANAGEMENT
SUPPLY CHAIN
PERFORMANCE 50 2 5 4.38 .725
MANAGEMENT
Valid N (listwise) 50

Table 2

Communalities

Initial

TRACKING 1.000
TRACKING 1.000
TRACKING 1.000
TRACKING 1.000
TRACKING 1.000
DATA ENTERING 1.000
DATA ENTERING 1.000
DATA ENTERING 1.000
DATA ENTERING 1.000
DATA ENTERING 1.000
RECORDING 1.000
RECORDING 1.000
RECORDING 1.000
RECORDING 1.000
RECORDING 1.000
REPORTING 1.000
REPORTING 1.000
REPORTING 1.000
REPORTING 1.000
REPORTING 1.000
SUPPLY CHAIN
PERFORMANCE 1.000
MANAGEMENT
SUPPLY CHAIN
PERFORMANCE 1.000
MANAGEMENT
SUPPLY CHAIN
PERFORMANCE 1.000
MANAGEMENT
SUPPLY CHAIN
PERFORMANCE 1.000
MANAGEMENT
SUPPLY CHAIN
PERFORMANCE 1.000
MANAGEMENT

Extraction Method: Principal Component

Analysis.