Fashion ERP Systems and Supply Chain Coordination

Abstract

The Enterprise Resource Planning (ERP) system is an enterprise information system designed to integrate and optimize the business processes and transactions in a corporation. An ERP system enables an organization to integrate all the primary business processes in order to enhance efficiency and achieve a competitive edge. It also facilitates the smooth flow of functional information and practices across the supply chain. TAL Apparel Limited is chosen to be the case study target and its cooperation with J. C. Penney under Vendor-Managed inventory (VMI) scheme is also being investigated. We also investigate the two latest recently implemented modules in TAL called Fashion Planning Workbench (FPW) and Supply Chain Order (SCO), which relate closely to the company’s production planning and order arrangement. Based on the case study results, and the literature review, we identify the critical successful factors in coordinating supply chains with ERP systems which include: (i) assessing the fitness between organization and the target ERP system, (ii) managing the cost and time of ERP implementation (iii) arranging extensive education, training and rewards to employees, (iv) ensuring the internal processes are working properly and fully integrated before it is implemented in managing the supply chain, (v) building up a trusting and collaborative relationship and (vi) ensuring information visibility. Finally, future research opportunities are explored.