Why Enterprise Resources Planning Technology Need on Logistics Integration and Retailer Satisfaction

This study examines the impact of enterprise resources planning (ERP) technology on retailer satisfaction through internal logistics integration and manufacturing integration. This research was conducted on as many as 135 manufacturers domiciled in East Java, Indonesia. Data collection was carried out using a questionnaire and analysis was performed using smart PLS. The result showed that ERP Technology influence logistics integration. ERP technology does not affect the manufacturing integration. ERP affects retailer satisfaction. Logistics integration influences manufacturing integration. Logistics integration influences retailer satisfaction. Manufacturing integration affects retailer satisfaction. One of the interesting findings is the proof that internal logistics integration mediates the influence of ERP implementation on the retailer. Meanwhile, manufacturing integration did not mediate the influence of ERP technology on retailer satisfaction. Hence, the ERP technology adopted a manufacturer affects the retailer satisfaction through direct and indirect effect. The result of the study provides an insight for the industry practitioner that implementing the ERP provide an excellent benefit for the company