The Effect of ERP System Utilization, Inventory Management, and Interdivisional Collaboration on Supply Chain Operational Efficiency in the Automotive Industry

This study examines the impact of ERP system utilization, inventory management practices, and interdivisional collaboration on supply chain operational efficiency in Indonesia’s automotive industry. Using a quantitative approach, data were collected from 120 respondents and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS 3). The results indicate that ERP system utilization, inventory management, and interdivisional collaboration contribute to supply chain efficiency, with a combined effect explaining 67% of the variance in operational efficiency. Findings highlight ERP systems’ role in enhancing real-time data sharing, inventory management’s impact on stock optimization, and collaboration’s ability to streamline cross-functional processes. This study provides insights for industry practitioners seeking to optimize supply chain performance through technology adoption, robust inventory practices, and cohesive interdepartmental collaboration.