Role of ERP Systems

DateEXECUTIVE SUMMARY

This study examined the impact of implementing the enterprise resource planning system on the inventory management in dairy producing Lebanese firms, investigating the relationship between the enterprise system and the management of the firm's inventory in Lebanon. In order to acquire this result, this study showed the integration of the firm's internal processes, and processes with their partners, by sharing the information through a centralized database, and by using supply chain technology applications and information systems such as ERP. The value of ERP has increased rapidly over the past several years and it has been very useful for firms that are involved in the manufacturing sector. There were various concepts of ERP which were highlighted in a proper way and there is a need for further advancement of ERP applications in the future. In this way, the mechanism of inventory management will improve considerably in the upcoming future. Therefore, all the issues related to Enterprise Resource Planning were discussed in detail.

Research Questions

This research is aimed at finding out whether the implementation of the enterprise system has any impact on the inventory management which is a part of the supply chain drivers. The following questions are to be researched:

What are the advantages and the disadvantages of firms implementing ERP systems?

How will this ERP integrate the departments of the firm, and what is the relationship between enterprise system and the inventory management?

Approaches of ERP

Along with a target to gain more flexible approach as well as process oriented ERP, systems were created to manage many different types of challenges that are faced by businesses and organizations. This involves the management of the production line, HR management, inventory and delivery, enhanced time to market as well as enhanced customer relationship management. In these aspects, ERP was observed as a method to utilize information in a more proactive manner across enterprises. (Kusiak, 2005)

On the other hand, the reality is that many businesses, it was found that improvement in the efficiency of operations does not mainly reflect to an overall improvement in effectiveness. As the requirement for ERP solutions has decreased, organizations are observing ways to enhance the ERP solutions in order to all the customers to place the business in center and to gain a competitive edge and increase profits. (Holsapple, 2005)

ERP system is able to increase the tone of the company, giving a potential to interact along with the changing markets, the dynamics of the needs of the customers as well as the business itself. In order to know the potential of the digital economy, businesses require an infrastructure that would be able to bring all the parts of the business together in order to act, interact and adopt more effectively than the competitors. Designing of ERP systems is complex and lengthy as it includes the work redesign schemes. The implementation has a high risk which consists of high costs, complexity, and investment of time and team creation. In many organizations, there is a need to replace ...