ERP & Supply Chain Management
Chapter 1
Introduction
1.1 Background
This is the age of science and technology. Not a single organization can sustain its position in the market without being using the technological advancement. The only thing in this universe which remains same is change. Therefore manufacturing environment has also been changed by the passage of time. Companies have the pressure to produce on the right time and right quantity in-order to achieve efficiency. On the other hand competition is increasing globally. Companies have to focus on more reliable and less time consuming means for their production. ERP which is the acronym of Enterprises Resource Planning is the solution of their problem. Enterprises Resource Planning is the set of application software which is integrated with accounting, distribution, sales and marketing, material management, human resource, logistics and several other functions of the business. It is derived from the material requirement planning (MRP).
This paper aims to explore the barriers before implementation and the challenges after implementation of ERP in the textile industry of Karachi the more focus would be given on the material procurement module of Enterprises Resource Planning. The study has narrowed to the textile sector of Karachi. Enterprises resource planning supports the organization in achieving cost-effectiveness, labor saving, inventory reduction, better management of resources, better process execution etc. (Polychronopoulos, 2005).
Initially in 1970s-1980s when computer was introduced commercially and companies had started using it then the focus had derived for the use of computer in scheduling and planning. That was the time when initially material requirement planning MRP introduced. That idea then converts into MRP-II material resource planning. In 1990s MRP-II further more improved and became ERP with all added features and integration with the departments like finance, human
Introduction
1.1 Background
This is the age of science and technology. Not a single organization can sustain its position in the market without being using the technological advancement. The only thing in this universe which remains same is change. Therefore manufacturing environment has also been changed by the passage of time. Companies have the pressure to produce on the right time and right quantity in-order to achieve efficiency. On the other hand competition is increasing globally. Companies have to focus on more reliable and less time consuming means for their production. ERP which is the acronym of Enterprises Resource Planning is the solution of their problem. Enterprises Resource Planning is the set of application software which is integrated with accounting, distribution, sales and marketing, material management, human resource, logistics and several other functions of the business. It is derived from the material requirement planning (MRP).
This paper aims to explore the barriers before implementation and the challenges after implementation of ERP in the textile industry of Karachi the more focus would be given on the material procurement module of Enterprises Resource Planning. The study has narrowed to the textile sector of Karachi. Enterprises resource planning supports the organization in achieving cost-effectiveness, labor saving, inventory reduction, better management of resources, better process execution etc. (Polychronopoulos, 2005).
Initially in 1970s-1980s when computer was introduced commercially and companies had started using it then the focus had derived for the use of computer in scheduling and planning. That was the time when initially material requirement planning MRP introduced. That idea then converts into MRP-II material resource planning. In 1990s MRP-II further more improved and became ERP with all added features and integration with the departments like finance, human
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