Supply chain risk management capabilities during enterprise resource planning implementation : perspectives of enterprise resource planning providers and their clients

Abstract

PURPOSE OF THE STUDY: Firms rely on information systems (IS) to improve information sharing and visibility, cut costs, and boost productivity. Enterprise resource planning (ERP) systems are being used as important strategic tools in this direction, providing competitive advantages and resulting in increased operational efficiencies. However, ERP implementation failure rates remain high because of ineffective risk management to limit supply chain disruptions during implementation. The objective of supply chain risk management (SCRM) is to enable firms to remain sustainable in the face of major disruptions. Therefore, this study aimed to determine the role of SCRM capabilities associated with ERP implementation to limit supply chain disruptions during ERP operations. DESIGN/METHODOLOGYy/APPROACH: A generic qualitative research design was used to collect primary data through semi-structured interviews with fourteen ERP providers and clients in South Africa. Thematic analysis was utilised to evaluate the data. FINDINGS: The study determined that SCRM capabilities can assist firms in returning to superior operations after ERP implementation. Furthermore, the findings shed light on the specific SCRM processes used during ERP implementation, as well as identifying areas for improvement. Recommendations/value: This study equips ERP providers and ERP clients with valuable insight into understanding the capabilities of SCRM in ERP implementation. MANAGERIAL IMPLICATIONS: Along with leveraging the SCRM capabilities identified, managers are advised to use formal and external assessment tools, implement a formal SCRM process, increase efforts to involve supply chain partners during ERP implementation and selection, and finally, incorporate a change management division to reduce disruption during ERP implementation.