Do Enterprise Systems Enable Supply Chain Integration?

Features of ERP systems such as standardized business processes, data integrity, real-time availability, visibility and processing capability of information are expected to create an excellent backdrop for embarking on integration with external partners in the supply chain. This paper reports on the enabling role of ERP systems in achieving supply chain integration from an interpretive case study analysis. Study observed that the organization is slow in embarking on changes to the inter-enterprise processes and not taking full advantage of the high potential. Reasons noted for constraining role of ERP systems in achieving an effective supply chain integration are changes in power and organizational structures, inadequate integration of internal processes, limited flexibility of processes, lack of decision support capability of the ERP system, and general inertia for further changes consequent to ERP implementation. In addition other factors such as supply chain partners inability to take a holistic view, complexity of developing technology interfaces, industry characteristics, and lack of information technology sophistication of the smaller partners are also limiting the potential