The Role of Enterprise Resource Planning in Supply Chain Management: A Case Study of Automotive Component Manufacturing Company

Supply Chain Management (SCM) has become a key component of competitive strategy to enhance a company's productivity and profitability. SCM requires the involvement of all stakeholders to deliver low-cost, high-quality products and excellent service. Manufacturing companies can improve their performance by prioritizing SCM, starting with improving the quality of their raw materials, suppliers, and product distribution. This will enable them to survive and compete with other manufacturing companies. SCM requires the support of a reliable Information, Communication, and Technology (ICT) system, specifically an Enterprise Resource Planning (ERP) system. ERP is used to increase profits through an integrated planning and control system. This study aims to determine the effect of Enterprise Resource Planning on the implementation of Supply Chain Management in a manufacturing company located in Karawang. The research method used in the analysis is a qualitative approach. The results of this study indicate that ERP implementation influences SCM practices and has a positive impact on manufacturing companies. The three ERP benefit constructs, namely operational function benefits, tactical benefits, and strategic benefits, must be strengthened by several factors during implementation to achieve a positive impact. These factors include individual impact, information quality, workgroup impact, organizational impact, leadership or superior support, vendor or consultant quality, system quality, training and education, business process reengineering, project management, and ERP fit. This study concludes that every factor influencing the success of ERP implementation, both internal and external, needs to be considered. These factors play a crucial role in facilitating the implementation of ERP systems in companies, thereby increasing productivity and creating a positive work environment. This also facilitates smooth information dissemination and effective work execution, ultimately improving SCM performance.