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The Effect of ERP System Utilization, Inventory Management, and Interdivisional Collaboration on Supply Chain Operational Efficiency in the Automotive Industry

Year: 2024
Type: article
Study design: Observational Study
Abstract: This study examines the impact of ERP system utilization, inventory management practices, and interdivisional collaboration on supply chain operational efficiency in Indonesia’s automotive industry. Using a quantitative approach, data were collected from 120 respondents and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS 3). The results indicate that ERP system utilization, inventory management, and interdivisional collaboration contribute to supply chain efficiency, with a combined effect explaining 67% of the variance in operational efficiency. Findings highlight ERP systems’ role in enhancing real-time data sharing, inventory management’s impact on stock optimization, and collaboration’s ability to streamline cross-functional processes. This study provides insights for industry practitioners seeking to optimize supply chain performance through technology adoption, robust inventory practices, and cohesive interdepartmental collaboration.
Language: English
Open Access status: diamond
OpenAlex ID: W4404217319
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