The Effect of ERP Practice, SCM Practice, To Production Performance With IT Infrastructure

Tarigan, Zeplin Jiwa Husada and Siagian, Hotlan and Suprapto, Widjojo and Basana, Sautma Ronni (2019) The Effect of ERP Practice, SCM Practice, To Production Performance With IT Infrastructure. In: The 3rd International Conference on Management and Entrepreneurship 2019, 27-07-2019 - 27-07-2019, Phuket - Thailand.

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Abstract

Information technology is a system that is used by many companies to unite many business function systems within the companies. The integrated information technology used by those companies is called Enterprise Resources Planning (ERP). The practice of ERP usage by companies is to obtain integrated data system among departments. The ERP practice must be aligned with the company operational system and must be customized for regular updates. This research distributes 74 questionnaires to manufacturing companies that main system is using ERP, with nine questionnaires rejected by the respondents due to company confidentiality, and 63 questionnaires are valid for further data process and analysis with PLS. ERP practice can increase SCM practice, and improve production performance of manufacturing companies. As an intervening variable, IT infrastructure upgrade can increase the effect of ERP practice to SCM practice because the information quality can become valuable information sharing for supply chain partners. The upgraded IT can increase the effect of ERP practice to production performance because it helps management to make proper decisions

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