ROLE AND CHALLENGES OF ERP(ENTERPRISE RESOURCE PLANNING) IN SUPPLY Dissertation

ROLE AND CHALLENGES OF ERP(ENTERPRISE RESOURCE PLANNING) IN SUPPLY CHAIN SECTOR IN FMCG(FAST MOVING CONSUMER GOODS) INDUSTRY IN - Dissertation Example The performance of the supply chain provides an edge to the company over its competitors. It can be well understood that when a country has such massive establishment of FMCG industry, then supply chain would be surely playing an important role in this sector. Keeping in mind the significance of supply chain in FMCG sector in India and the increasing use of technology in the retail and FMCG sector, this study aims to thoroughly analyze the significance and challenges of implementing Enterprise Resource Planning (ERP) in the supply chain of the FMCG sector of Lucknow, India. The issues which the supply chain companies face due to incorrect ERP implementation or inadequate training would also be discussed. Further, instances of breakdown of the supply chain services in the FMCG sector due to ERP problems would also be discussed. Secondary research was conducted and the literature available on the subject was studied to discuss the significance of ERP in the supply chain. The role of IT integrated supply chain in companies like ITC, HUL, Dabur, and Nestle have identified. It was found that ERP integration has streamlined the information flow and has assisted in smooth flow of goods and services. The respondents considered to conduct the study confirmed the fact that all the four FMCG companies have excellent IT integrated framework and they are quite satisfied with its performance. Table of Contents Abstract 2 CHAPTER I – INTRODUCTION 8 1.1 FMCG Industry in India 8 1.2 India Competitiveness and Comparison with the World Markets 9 1.3 SWOT Analysis of the FMCG Industry in India 11 1.4 Supply Chain in FMCG Sector 13 1.5 ERP (Enterprise Resource Planning) in Supply Chain 14 1.6 Outline of the Study 15 1.7 Research Objectives 16 1.8 Problem Statement 17 1.9 Research Question 17 CHAPTER II – LITERATURE REVIEW 17 2.1 Supply Chain Sector in India 17 2.2 Role of Supply Chain in the FMCG Sector of India 21 2.3 Usage of Technology in the Supply Chain Segment 2 4 2.4 Penetration of Technology in the FMCG Sector of India 27 2.5 Significance of EPR in Supply Chain Management 31 2.6 Implementation of ERP for Supply Chain Management in FMCG Sector 34 2.7 Challenges in the Implementation and Usage of ERP 37 2.9 ERP in Few Major FMCG Companies in Lucknow, India 39 2.9.1 Indian Tobacco Company (ITC) 40 2.9.2 Hindustan Unilever Limited (HUL) 42 2.9.3 NESTLE India 45 2.9.4 DABUR India Ltd. 47 CHAPTER III – RESEARCH METHODOLOGY 49 3.1 Introduction 49 3.2 Justification for Methodology 50 3.2.1 Qualitative Methodology 51 3.2.2 Case Study Research 52 3.2 Data Collection Instrument 53 3.2.1 Construct Validity 53 3.2.2 Internal Validity 54 3.2.3 External Validity 54 3.2.4 Reliability 55 3.3 Questionnaire Survey 55 3.4 Sources of Data 56 3.5 Administration of Procedure 57 3.6 Ethical Considerations 57 CHAPTER IV –FINDINGS AND DATA ANALYSIS 58 4.1Findings 58 CHAPTER V – CONCLUSION AND RECOMMENDATION 71 5.1 Conclusion 71 IT integrated s upply chain is the most significant component of the firm’s infrastructure. The FMCG companies in India are utilizing the boom and development of technology in the country to the fullest. India is a vast country with increasing population. Though it is considered to be a marketer’s paradise, but on the other hand managing physical logistics system is really troublesome because of various barriers. In order to avoid these barriers FMCG companies ha