Abstract:
A lot of organizations have adopted and implemented enterprise wide information systems which
can be summarized in the term Enterprise Resource Planning (ERP) systems. An ERP system
can be characterized as an information system made up of different modules, each supporting
the business processes. Enterprise resource planning (ERP) systems affect organizations and are
implemented to enhance organizational effectiveness. The primary objective of this study is to
explain the relationship between Enterprise Resource Planning (ERP) and Supply Chain
Management Performance in the EEU. Only quantitative research approaches are going to be
used in the study. Explanatory and Descriptive research design were used to identify ERP
implementation factors and to examine the effect of ERP implementation on the supply chain
performance. Simple random sampling was used to select the appropriate samples of the study.
All of the implementation factors were found to have positive and significant correlation with the
dependent variable which is supply chain performance. The ANOVA test result showed that, the
value of R and R
2
obtained under the model summary was statistically significant (F=246.311),
P<0.001). From the study analysis, Top Management Support has a positive and significant
standardized coefficient value (β=0.269, T-value = 1.639, p<0.05). The positive relationship
means if, Top management support increases by 1, SCM performance of EEU will increase
0.269. User training has a positive and significant standardized coefficient value (β=0.047, Tvalue
=11.430,
p<0.05). The positive relationship means if, user training increases by 1, SCM
performance in EEU will increase by 0.047. The same is true for other predictor variables. The
multiple linear regression analysis revealed that, all the independent variables (top management
support, user support, user training, IT infrastructure and communication) have a statistically
significant relationship to predict supply chain performance. In order to improve the SCM
performance even further, top management should provide the necessary resources in terms of
leadership, financial support and provision of expertise for implementation of ERP to be
successful. In addition, EEU should offer training to all staff members, improve on time and
accurate information exchange with the suppliers and embrace technological changes