Supply‐chain re‐engineering using enterprise resource planning (ERP) systems: an analysis of a SAP R/3 implementation case

Abstract

The development of enterprise resource planning (ERP) packages has created an opportunity to re‐engineer supply chains within and beyond the organizational scope. Most notably, SAP R/3 has been widely implemented to create value‐oriented supply chains that enable a high level of integration, improve communication within internal and external business networks, and enhance the decision‐making process. Though many organizations have reported dramatic improvements from SAP R/3 implementation, others have experienced difficulties in getting the R/3 modules aligned with other business components and systems. Describes a case study of a failed implementation of SAP R/3 to re‐engineer the supply‐chain and business processes of a major manufacturer. Lessons, in terms of factors that led to failure and their future implications, are discussed in the light of the contrasting experiences of several best practice companies. Based on the overall analysis, a framework for effective implementation of SAP R/3 is proposed.