Types of ERP Systems and Their Impacts on the Supply Chains in the Humanitarian and Private Sectors
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Management School, University of Liverpool, Liverpool L69 7ZH, UK
2
College of Business and Economic Development, The University of Southern Mississippi, Long Beach, MS 39560, USA
3
Faculty of Business, Athabasca University, Athabasca, AB T9S 3A3, Canada
*
Author to whom correspondence should be addressed.
Sustainability 2022, 14(20), 13054; https://doi.org/10.3390/su142013054
Submission received: 28 August 2022
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Revised: 1 October 2022
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Accepted: 8 October 2022
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Published: 12 October 2022
(This article belongs to the Special Issue The Future Implications and Impact of Sustainable Production in the Digital Age)
Abstract
:(1) Background: This paper explores different ERP systems used in the supply chains of humanitarian and private sectors and their key impacts on supply chain performance. The study examined 19 potential impacts from the published literature from 2015 to 2020 and investigated whether they are equally relevant in the global private and humanitarian sectors. (2) Methods: An anonymous online questionnaire was used and advertised on different social media websites. Fifty humanitarian supply chain professionals and 53 private sector professionals completed the questionnaire. A descriptive statistic cross-tabulation analysis was used to show the differences or similarities in the collected responses, and a Mann–Whitney Test was used to test the research hypotheses. (3) Results: The findings highlighted the key impacts of ERP systems on supply chain performance and confirmed that these impacts are similar in both sectors. Additionally, the humanitarian sector prefers to implement custom-made ERPs, whereas the private sector purchases ready-to-use products. (4) Conclusions: The reviewed literature did not show studies conducting such a comparative study. The results provide a better understanding of the types of ERP systems and their impacts on supply chain operations within the two examined sectors.
Keywords:
ERP; enterprise resource planning; supply chains; humanitarian; private sector; impacts; types1. Introduction
Private companies have become more perplexed by geographical decentralization and structural systems. Thus, private organizations have started to invest in supply chain ERPs to compete in the current business environment, which allows for better internal and external communications. Many studies were carried out in the private sector investigating the ERP implementation, its roles, successful factors, challenges, and impact on performance. Some studies analyzed the implementation of ERPs in the humanitarian sector. However, there is no research comparing the implementation of ERPs in the humanitarian and private sectors, focusing on different locations and industries under a single study and looking at the differences between the humanitarian and private sectors, globally. Therefore, this research aims to fill the academic literature gap by performing a cross-industries analysis and comparing the differences and similarities of the ERP systems used and their impact during the implementation of various ERPs in the humanitarian and private sector logistics in Africa, Asia, Canada, Australia, Europe, and the Americas. It will allow professionals of both sectors to understand these elements better and integrate them while implementing ERPs. The two studied business sectors can learn from their experiences and understand the differences in the ERP implementation approaches and the influence of these differences on the performance in both sectors.
Additionally, the researchers’ interest is gathering and summarizing the lists of different ERPs and the impacts mentioned in the various recent literature. It will allow professionals of both sectors to understand these elements better and integrate them while implementing ERPs. The research also explores the ERP novelties and current trends in the humanitarian and private sectors. Therefore, to develop research question 1, a recent literature review revealed that many humanitarian organizations design their ERPs with various humanitarian entities. However, one study [1] argued that these solutions are poorly integrated and link only fields and headquarters. On the contrary, different private sector businesses used ERP solutions to connect the headquarters and other business locations with other logistics partners. The researchers want to investigate further and compare the different solutions in both industries.
Research Question 1: which ERPs are currently used in the humanitarian and private sectors?
A previous study [2] revealed that the impact of ERPs on private organizations is the possibility to obtain a competitive advantage in the market. The humanitarian organizations have other performance impacts: better information sharing, cooperation, and coordination among the humanitarian partners. Therefore, by asking the first research question, the researchers intend to investigate and compare both sectors’ success factors.
Research Question 2: what are the impacts of ERP systems after implementation on the performance of humanitarian and private organizations, globally?
Following a scrutinous literature review, there appear to be different gaps in the previous studies that this research will attempt to fill. For example, no previous studies compared the ERP implementation in private and humanitarian sectors, and most of the studies were geographically limited or they concentrated on specific industries. Furthermore, the studies did not compare the types and impacts of the ERP implementation and whether the organizations prefer to implement custom-made ERP systems or ready-to-use products. Furthermore, there is limited information about ERPs used in different locations and humanitarian organizations. In contrast, more information is available about the old systems such as Helios, Sahana, Logistix, etc. This study proposes to fill this gap by doing a comparative analysis of the private and humanitarian sectors on a global level to bring a general overview of ERPs and its impacts on performance in the private and humanitarian sectors. Furthermore, to explore whether the types of ERPs used and their impacts are similar or different in humanitarian and private organizations under a single study and answer the two developed research questions that were not addressed by the previous studies. As several previous studies mainly focus on a particular private sector or a geographical location, the researchers seek to fill this gap by conducting broader research. Finally, the researchers only found one list of different ERPs used in the private sector and no similar list in the humanitarian sector. Thus, the researchers intend to fill this literature gap by presenting an updated list of private sector ERPs and a new list of ERPs implemented in humanitarian organizations.
This paper is organized as follows: Section 2 provides a literature review of the different perceptions of other scholars on ERP systems, their use in the humanitarian and private sectors, and their impact on the performance of organizations in the two business sectors. Section 3 describes the methodology used to carry out this study and includes the hypothesis, research design, targeted population, data collection instruments, and techniques for the data analysis. Section 4 shows the results and evaluation of the online questionnaire in tables. Finally, Section 5 summarizes the findings from Section 4 and gives the study’s explanation, conclusions, and recommendations.
2. Literature Review
This section extensively reviews the key themes related to this research study. This includes the different technologies adopted in the supply chain of the humanitarian and private sectors. Then, this is followed by an overview of ERP systems, including definitions, what they do, and some key business functions that utilize them. Next, an overview of the use of ERP systems in the humanitarian and private sectors is provided. In addition, the types of ERP systems used in the humanitarian sector’s supply chains and their impact on the supply chain performance are discussed. Finally, the types of ERP systems used in the private sector’s supply chains and their effect on the supply chain performance are provided.
2.1. Different Technologies in the Humanitarian and Private Sector Supply Chains
Supply chain technologies play a significant role in logistics, since information flow is highly critical for both sectors. Different technologies that aid humanitarians rapidly appear, and despite the limited number of studies related to the adoption of various technologies in humanitarian organizations, the researchers found some of the recent studies presented in Table 1:
To fund these technologies, humanitarian organizations seek funding via different donors or fund-raising campaigns [5]. Moreover, two other studies [7,8] explained that humanitarian organizations invest in technologies to increase their coverage scope by improving donor information. There are a few articles that describe the challenges to implementing technology in humanitarian logistics, as shown in Table 2:
However, the researchers could not find any updated and consolidated list of ERPs implemented and used in humanitarian logistics. On the contrary, many studies described implementing and using various technologies, such as ERPs, IoT, robotics, big data, smart warehousing, 3D printing, and artificial intelligence in commercial logistics. A study [11] argued that implementing and using the IoT helps companies to improve their logistics operations’ effectiveness. Another source [11] specified that RFID enables to collect massive amounts of data for further decision-making and other papers [12] suggested that artificial intelligence ensures the proper planning and control of logistics operations. The ERP integrates internal business functions and incorporates the clients and suppliers into its logistics operations. It establishes an assemblage of best practices for the business processes that may govern companies to change their structures and business strategies [13].
2.2. ERP Overview
Many companies experience challenges while expanding their markets, due to the current high customer expectations and corporate environment. Therefore, the ERPs assist them in handling these challenges by attracting more attention to the logistics practitioners who try to discover how to deal with today’s volatile business environment [14].
Consequently, an ERP is a management tool that administers the company’s supply chain information and resources in real-time [15,16]. In summary, the ERP can merge different partners externally and internally with a shared database and facilitate information sharing. ERPs substitute the archaistic incommensurable logistics systems and allow for storing all of the information in a single database. These systems may physically include two or three separate modules, such as WMS, TMS, and others located in the central office. If the warehouse is interconnected with transport and distribution systems, the ERP merges them to manage better and understand the whole process. As a result of merging, and as stated by several papers [15,17,18], the supply chain ERP facilitates the planning of the private sector production or humanitarian operations, inventory management, orders, and payments follow-up, deliveries, and other supply chain functions and ensures the information sharing between logistics partners.
2.3. ERP in the Humanitarian and Private Sectors
It is argued by [15] that private organizations actively use supply chain ERP systems for their internal and external partnerships as their primary target to generate profit. Thus, the information must be shared in time to eliminate the production’s destruction and to stay afloat in the market. On the contrary, humanitarian organizations are reluctant and slow in implementing ERPs due to the lack of resources and funding, resistance from senior management, and unstable infrastructure [15,19]. Another paper [17] stated that humanitarian logistics rely on Excel spreadsheets, which are subject to many mistakes and omissions of information. Therefore, it is challenging to coordinate complex humanitarian operations. When an emergency appears, and many people need food, shelter, and other life-saving items, it is problematic to deliver them due to the absence of a standard ERP.
An analysis and review of past studies reveals the limited research on the global ERP implementation in humanitarian organizations. Past studies on the implementation of ERPs internationally, were very general, and most of them were conducted in the private sector. Additionally, these research studies did not attempt to compare both sectors’ challenges and success factors. Thus, the research intends to address all of these questions in this study and fill the literature gap.
2.4. Existing ERP Options in the Humanitarian Supply Chain
A study [15] analyzed the history of implementing supply chain ERPs in humanitarian logistics and identified a range of ERPs, such as SUMA, created in 1992 by the Pan American Health Organization. However, the authors stated that this system is limited in its functionality. Other systems designed by the International Federation of Red Cross, Red Crescent Societies, Fritz Institute, and MSF, are HELIOS and Logistix.
HELIOS is a flexible ERP tailored for humanitarian operations with weak IT infrastructures. It ensures real-time access to information and manages the mobilization, procurement, and warehouse cycles, starting from the mobilization phase, procurement requests, and ending with the registration of the goods at the warehouse [20], as presented in Figure 1.
It has the following benefits: enhancing the impact of the humanitarian operations, ameliorating humanitarian logistics’ efficiency, easy to implement, flexible, and affordable. However, as stated by the Fritz Institute (no date), HELIOS is still developing the option to work with a low internet bandwidth. UN-OCHA LogIK Tool, implemented by the UN, provides information about the items delivered and their locations. It allows the logistics professionals at the UN and donor organizations to track the goods and decide on the supplementary goods distribution [21]. The International Rescue Committee (IRC) implemented Open-Source CTS,20 for tracking their commodities. The World Food Program developed OpsFeed21 for tracking goods’ locations in real time. These systems eliminated some risks, such as theft or information mismatches in warehouses and distribution sites. However, they lack integration in the planning, quality verification, and control phases and need improvement in their product control, procurement, and distribution management [21].
The same study [21] attempted to design the health equipment inventory system for the recent humanitarian response in Syria and Lebanon. The authors tried it in the ICRC’s Weapon Traumatology Training Centre in Tripoli, Lebanon, where they discovered that it is simple and facilitates the administration of medicines and orders. As stated by [21], different ERPs for humanitarian logistics were developed based on the systems from the private sector. They were adapted to enhance the visibility, transparency, and to improve the reporting requirements, to help determine the correct location or distribution sites, and enhance inventory management. Nevertheless, despite their simplicity and the possibilities to use them without a high level of computer literacy, all of the ERPs lack connection with other logistics partner systems, only work with an excellent internet bandwidth, or perform specific functions. The limitations of the studies mentioned above appertain to specific organizations and do not explore multiple humanitarian agencies, including the small, local, and international NGOs. Additionally, the past literature did not fully address the ERP types that the humanitarian organizations prefer to implement, whether there are new solutions in the last few years that humanitarian organizations have already implemented or whether these systems are under implementation. Therefore, this literature gap will be filled by asking the study participants about their knowledge and opinion of the systems they know.
2.5. Impact on the Performance after the ERP Implementation in the Humanitarian Supply Chain
The rapidity and effectiveness with which the humanitarian organizations tackle the humanitarian crisis, establish the level of impact on people’s lives. The humanitarian organizations’ performance is measured by the amount of time that the organization is required to respond to the crisis and their ability to meet the affected population’s needs. Therefore, ERPs can help organizations efficiently plan, organize, perform their operations, and improve their performance. [15] mentioned that there are a series of performance impacts after the ERP implementation, which are the following:
- Possibilities to share information, in real-time, between different departments and the supply chain partners.
- Monitor each process.
- Prepare the reports on procurement in the pipeline, availability of stock, fleet management, and fuel management.
- Build the resilience for supply chain destructions and improve the cooperation with suppliers;
- Ensure the efficient management of resources.
Furthermore, another research [1] mentioned that supply chain ERPs improve fleet management. In addition, a published paper about the same theme [19] argued that ERPs significantly impact the humanitarian logistics performance and management of resources of humanitarian operations and allow the following elements to be improved, as per Figure 2:
However, the authors acknowledged the study’s limitation and proposed that future research must concentrate on the cross-functional integration beyond humanitarian logistics. The researchers did not find any study comparing the ERP impacts on humanitarian and private organizations under a single investigation. Thus, the research will investigate whether they differ in many ways or are the same.
2.6. Existing ERP Solutions in the Private Sector Supply Chain
Some studies [22] argued that the private sector has three big providers of ready-to-use ERPs, such as Oracle, SAP, and Infor. These companies continuously improve their solutions to satisfy the client’s demands. For instance, Oracle’s WMS cloud-based solution now includes additional functions to track cargo delivery. Other sources [23] described SAP’s HANA, an in-memory database technology that manages transactional data. Additionally, [24] presented the complete list of the existing ERPs in Table 3. However, since 2012, the list shown on the table was not updated except for unofficial information on social media.
2.7. Impact on the Performance after the ERP Implementation in the Private Sector Supply Chain
It has been identified by a previous study [18], that the ERP implementation positively impacts logistics operations, resources management, facilitates effectiveness, information flow, improves control over the supply chain workflow and cooperation between different departments. However, the study was geographically limited to Indian companies, concentrated on technologically advanced organizations, and lacked a description of challenges, success factors, and the impact of the ERP supply chain systems on small organizations. Thus, future studies shall investigate other industries with dispersed geographical locations. Other studies [13] examined the roles of ERPs and their impact on strengthening competitive advantages and concluded that ERPs significantly impact the supply chain performance. Additionally, it was suggested that the ERP implementation needs top management support, proper planning, and preparation. However, the authors proposed focusing on comparing the different challenges during the ERP implementation in the service and industrial sectors.
The impact of RFID and ERP implementation on supply chain management was investigated by several studies [25]. The authors concluded that ERP and RFID systems sufficiently contribute to the SCM by optimizing the supply chain integration, inventory levels, stimulating the flow of information and products, controlling the supply chain workflow, and managing organizational resources. The authors state that the information exchange mechanism ensures on-time and accurate information sharing. It gives the managers a bigger picture to help control the logistics progress, plan the logistics activities, and facilitate decision-making. The authors recommended that future research concentrates on other sectors and countries and investigate the impact of ERPs on the companies’ performance. Another study [2] focused on the operational impacts of ERP systems on logistics. They argued that after the ERP implementation, the organizations reduced the order cycle time, inventory levels, improved customer service, supplier relationship management, decreased manufacturing lead times, and facilitated on-time deliveries. The authors specified if organizations appropriately align the ERPs with the business workflow, it can reduce operational costs, reform productivity, allow access to real-time information, and facilitate the cooperation with suppliers and clients. However, this study did not consider the sustainable ERP performance and the differences of the organizational scope of the ERP deployment on a global level.
Furthermore, another study [26] identified five significant impacts of the ERP implementation on logistics, which are:
- decisive impact on the supply chain visibility and transparency;
- impact on operational processes;
- improvement of information cybersecurity;
- better collaboration between supply chain partners and departments.
Several studies [27] stated that an ERP has an integral impact on the supply chain productivity. However, these studies considered only the impacts in specific countries and industries. [28] illustrated the transition of the existing systems towards ERPs and stated that ERPs helped to eliminate human mistakes. Finally, a different paper [29] argued that technology impacts the reduction of thefts.
3. Research Methodology
3.1. Data Collection
This quantitative cross-industries comparison study collects the data via a semi-structured online questionnaire. The questionnaire was developed to include closed and open-ended questions to allow variety. Direct contact with the participants in different humanitarian and private organizations were made, and the questionnaire was posted on several Facebook and LinkedIn groups for logistics professionals, targeting those who already participated in the ERP implementation or are currently participating. It is argued [30] that questionnaires allow for generating the quantitative description of opinions or trends. Therefore, the questionnaire was developed and divided into main sections to answer the main research questions and test the hypothesis. Table 4 shows the parts of the used questionnaire included in this paper. Ref. [30] proposed to generate the preliminary findings using web-based tools such as SurveyMonkey, Kwiksurveys, Freeonlinesurveys, and Qualtrics, which permit viewing the preliminary findings, exporting to Excel, and later analyzing with the statistical software. This research technique’s strength is that it furnishes the scientist with exact results, compares across different categories, and includes the procedures that can increase validity and reliability [31].
A paper [30] presented the Likert scale example, which can be used to form the questionnaire and then quickly analyze the information. This scale presents the responses in the form of five answers, which are (1) Strongly agree; (2) Agree; (3) Not sure; (4) Disagree and (5) Strongly disagree. The internal logicality of the items was verified by using Cronbach’s alpha. As per Table 4, the study instrument’s reliability was instituted by estimating the averaging correlation amidst the items in the scales of the accordant dimensions, introducing the independent and dependent variables. All alpha values for the dimensions were above 0.6 [32]. The collective Cronbach’s alpha value for the used construct was 0.854. Thus, all of the items could measure the variable.
There were two groups for comparison: humanitarian and private organizations. The data were tested with the Statistical Package for the Social Sciences for Windows (SPSS) software by using the Mann–Whitney Test. This test can help the researchers answer the research questions related to the differences among the groups [33]. The authors compared the Mann–Whitney U test with the T-test and stated that it is more powerful and helpful in presenting the differences between the two groups and testing the research’s hypothesis. It also gives fewer wrongful results compared to the T-test [33]. A pilot test of the questionnaire was executed to check the questions’ reliability. The questionnaire was verified on a small subset of respondents to define any obscurity or shortcomings in the questionnaire and adjust it as per the respondent’s comments. During this verification, the emphasis was on filtering the questionnaire to decrease the number of problems that might arise while analyzing the gathered information and enhancing the questionnaire’s reliability and validity.
3.2. Participants
This study’s data was collected using the developed online questionnaire to approximately 100 participants (50 randomly selected participants from commercial organizations and 50 from humanitarian organizations) located all over the globe. The targeted participants were the supply chain executives, consultants, managers, and officers of both industries participating in implementing ERP systems. Table 5 provides an overview of the profile of the participants.
3.3. Data Analysis
The study has two groups for comparison: private and humanitarian organizations. The Statistical Package for the Social Sciences for Windows (SPSS) was used to analyze the data. The gathered data were checked for completeness and only, after that, entered into the SPSS. The data presentation was carried out by visualizing the information on different figures, charts, and tables.
3.4. Study Hypothesis
Taking the two research questions used; the study tested the following hypothesis:
Research Question 1: which ERPs are already used in the humanitarian and private sectors?
While doing the literature review, the researchers identified various ERPs currently used by the humanitarian and private sectors. The humanitarian sector implements SUMA, Helios, and Logistix [15]. There are three leading ERPs in the private sector: Oracle, SAP, and Infor [22,24]. To test the hypothesis below, the researchers expected to study whether both sectors prefer to tailor the ERPs according to their needs or to use turnkey solutions.
H0:
ERP systems are tailored specifically for humanitarian and private sectors.
H1:
ERP systems are not tailored for humanitarian and private sectors, and both sectors use already made ERP systems.
Research Question 2: what are the impacts of ERP systems after implementation on the performance of humanitarian and private organizations, globally?
A study [26] elucidated the impact of RFID and the ERP implementation on supply chain management and identified that ERPs positively impact the information flow between supply chain partners in the private sector. In humanitarian logistics, [15] noticed the same impact. Thus, by testing the hypothesis below, the researchers intended to investigate whether the implementation of ERP systems impacts the performance of humanitarian and private organizations and whether there are different or similar impacts in both sectors.
H0:
Implementing ERP systems impact positive changes in the humanitarian and private sector operational performance.
H2:
Implementing ERP systems does not impact positive changes in the operational performance in the humanitarian and private sectors.
Other research [34] argued that there are only two central methodologies: quantitative and qualitative. Furthermore, another study [35] argued that the quantitative methodology is related to the positivist and postpositivist metatheoretical stances, while qualitative methodology is associated with an interpretive or allied metatheoretical stance.
For this research, the quantitative methodology was used, as it is unusual for comparative analysis of many countries or industries to apply a qualitative methodology as it is necessary to collect a richer level of data, which includes a thorough history [36].
4. Results and Conclusions
4.1. Results for Research Question 1: Which ERPs Are already Used in the Humanitarian and Private Sectors?
The responses to this question were used to reject or accept the hypothesis and to identify the types of ERP systems used, to compare the different ERP solutions used across the humanitarian and private organizations, and to conduct a descriptive cross-tabulation analysis. Table 6 shows that 68% of the humanitarian professionals implemented custom-made systems, 2% will implement, and 8% are currently implementing. 14% of professionals implemented ready-to-use products, and 8% now implement ready-to-use products. 28.3% of professionals implemented custom-made ERPs in the private sector, and 3.8% are currently implementing them. 60.4% implemented the ready-to-use ERPs, 5.7% will implement, and 1.9% are currently implementing.
The participants were also presented with a list of types of ERP systems to choose from and that are currently used at their workplaces. Table 7 shows the types of reported ERP systems used in the humanitarian sector as well as in the private sector. Most of the responses indicated other types of ERP systems used, as follows: (1) at the humanitarian organizations, the reported other types were Unit 4 Business, Microsoft Dynamics, Logistics Execution System (LES), Knack, Logistics Support System (LSS), MERO, TechnologyOne, NetApp OnTAP, SCM4Good, Sage, People Soft, and Humanitarian Logistics Systems; (2) at the private sector, the reported other ERP systems used were Unit 4 Business, Microsoft Dynamics, Knack, Proactis, ProcessPro, Rockstock Cloud ERP, WorkWise, Manhattan, NetSuite, JAGGEAR, GLOVIA G2, Plex, Luminate Logistics, Avercast, Aptos, OMP, Sage, Coupa, IFS Supply Chain, Access, Mercure, Odoo, and Retail Link.
Second H0 Testing Results
The null hypothesis, related to the first research question reads, “H0: ERP systems are tailored specifically for humanitarian and private sectors”. The results showed that the humanitarian and private sectors utilize some well-known ERP systems but also use others that are tailored to the nature of their operations.
4.2. Results for Research Question 2: What Are the Impacts of ERP Systems after Implementation on the Performance of Humanitarian and Private Organizations, Globally?
This part of the questionnaire gathered the opinions of supply chain professionals on whether the implementation of ERP systems has a positive impact on the organization’s performance.
4.2.1. Impacts of Implementing ERP Systems on the Performance of Humanitarian Organizations
Table 8 shows the reported opinions about the examined impacts of ERP systems on the performance of humanitarian organizations. The results for the first examined impact were in line with the academic literature, which studied the humanitarian sectors [37,38], argued about this impact. The results for the second tested impact were in line with the academic literature, which studied the humanitarian sectors [15,19,39], and argued about this impact. For the third examined impact, the results align with the academic literature, which studied the humanitarian sectors [15], and argued about this factor. For the fourth examined impact, the results were in line with the academic literature, which studied the humanitarian sectors [15,40]; and Ref. [21] mentioned this impact. Results for the fifth examined impact were in line with the academic literature, which studied the humanitarian sectors [7,17,22,37,39,40]. The sixth tested impact was not mentioned in the humanitarian literature, and the researchers propose to add it to the list. The results for the seventh examined impact were in line with the academic literature, which studied the humanitarian sectors [5,15,17,21], and mentioned this impact. The results for the eighth examined impact were in line with the academic literature, which studied the humanitarian sectors [1,14,17,19], and mentioned this impact. The results for the ninth examined impact were in line with the academic literature, which studied the humanitarian [37] and private sectors [28].
The results for the tenth examined impact were in line with the academic literature, which studied the humanitarian sectors [21,37], and mentioned this impact. The results for the eleventh examined impact were in line with the academic literature, which studied the humanitarian sectors [17,22,37,39], and mentioned this impact. Furthermore, the results for the twelfth examined impact were in line with the academic literature, which studied the humanitarian sectors [14,19], and mentioned this impact. The results for the examined thirteenth impact were in line with the academic literature, which studied the humanitarian sectors [15,40], and mentioned this impact. The results of the examined fourteenth impact align with the academic literature, which studied the humanitarian sectors [15,19], and mentioned this impact. The results for the fifteenth examined impact were not in line with the academic literature, which studied the humanitarian sectors [15]. Furthermore, the examined sixteenth impact results were not in line with the academic literature, which studied the humanitarian sectors [22], and both sectors did not confirm it. The results for the seventeenth examined impact were in line with the academic literature, which studied the humanitarian sectors [22]. The results for the examined eighteenth impact were in line with the academic literature, which studied the humanitarian sectors [37], and mentioned this impact. The results for the final examined impact were in line with the academic literature, which studied the humanitarian sectors [21], and mentioned this impact.
4.2.2. Impacts of Implementing ERP Systems on the Performance of Private Sector Organizations
Table 9 shows the reported opinions about the examined impacts of ERP systems on the performance of private sector organizations. The results for the first examined impact were in line with the academic literature, which studied the private sectors [2,26,41], and argued about this impact. The results for the second tested impact were in line with the academic literature, which studied the private sectors [18,25], and argued about this impact. For the third examined impact, the results align with the academic literature, which studied the private sectors [18,26], and argued about this factor. The results of the fourth examined impact were in line with the academic literature, which studied the private sectors [42] and mentioned this impact. Results for the fifth examined impact were in line with the academic literature, which studied the private sectors [2,14,16,42,43], and mentioned this impact. The results for the sixth tested impact were in line with the academic literature, which studied the private sectors [26]. The results for the seventh examined impact were in line with the academic literature, which studied the private sectors [2,25], and mentioned this impact. The results for the eighth examined impact were in line with the academic literature, which studied the private sectors [25], and mentioned this impact. The results for the ninth examined impact were in line with the academic literature, which studied the private sectors [28].
The results for the tenth examined impact were in line with the academic literature, which studied the private sectors [29], and mentioned this impact. The results for the eleventh examined impact were in line with the academic literature, which studied the private sectors [18,25], and mentioned this impact. Furthermore, the results for the twelfth examined impact were in line with the academic literature, which studied the private sectors [2], and mentioned this impact. The results for the thirteenth examined impact were in line with the academic literature, which studied the private sectors [2], and mentioned this impact. The results for the tested fourteenth impact were in line with the academic literature, which studied the private sectors [2], and mentioned this impact. The examined fifteenth impact was not mentioned in the private sector literature and was not confirmed by both sectors. Furthermore, the examined sixteenth impact was not mentioned in the private sector literature and was not confirmed by both sectors. The seventeenth examined impact was not mentioned in the recent private sector literature but was confirmed by the private sector professionals. Thus, the researchers propose to add it to the list. The results for the examined eighteenth impact were in line with the academic literature, which studied the private sectors [2], and mentioned this impact. The results for the final examined impact were in line with the academic literature, which studied the private sectors [26], and mentioned this impact.
4.2.3. Second H0 Testing Results
The null hypothesis, related to the second research question reads, “The implementation of ERP systems impacts positive changes in the operational performance in both the humanitarian and private sectors.” The Mann–Whitney test was conducted on all of the examined ERP systems’ impacts, and the results were as follows: fifteen impacts were retained, and these were numbers 1, 2, 4, 5, 6, 7, 8, 10, 11, 12, 14, 15, 16, 18, and 19. The rejected impacts were numbers 3, 9, 13, and 17.
The third impact was rejected because some of the private sector respondents were not sure, and humanitarian respondents disagreed and also were not sure. However, as many professionals agreed, this impact is applicable in the humanitarian and private sectors. The same thing can be said about the ninth impact, as some of the private sector respondents were not sure and disagreed. However, as many professionals agreed, this impact is applicable in the humanitarian and private sectors. Furthermore, regarding the impact of ERP systems on the improvement of on-time delivery, there were some unequal distributions in the respondents’ answers. However, as many professionals agreed, this impact is applicable in the humanitarian and private sectors. Finally, The Mann–Whitney test suggested rejecting H0 for the 17th potential impact as some private sector respondents disagreed and were unsure. However, as many professionals agreed, this impact is applicable in the humanitarian and private sectors.
5. Conclusions and Recommendations
This research was carried out to perform a cross-industries analysis on the ERP implementation in the humanitarian and private sectors, as it was never carried out before. The research answered the research questions by identifying the ERP systems used and comparing across the humanitarian and private sectors. Additionally, the research reports on the ERP implementation’s key impacts on the performance of the humanitarian and private sector organizations. This research study concentrated on the cross-functional integration beyond the humanitarian logistics and compared the potential ERP impacts on the humanitarian and private organizations. The research concluded that most of the examined potential impacts were similar in both sectors apart from some. In addition, the potential supported impacts can be ranked in the order of the most impacted areas to the least. Such ranking can help decision makers to focus more on the areas that would benefit more from using ERP systems.
This section presents the conclusions and recommendations, the study’s limitations, and the recommendations for future research.
5.1. ERP Systems Used in the Humanitarian and Private Sectors
Most humanitarian respondents specified that they prefer to implement the custom-made ERPs, borrowed from the private sector. It confirms that the ‘commercially available ERPs are very reliable and are flexible enough to be configured to satisfy the specific needs of EHLs [15]. While the private sector respondents indicated that they implement ready-to-use products [22], and the most implemented ERP is SAP. Therefore, it can be concluded that H0 is accepted for the humanitarian sector as the ERP systems are mainly tailored for the humanitarian sector as per the respondents’ answers. On the contrary, it can be concluded that the private sector accepts H1 as it prefers to implement ready-to-use products. Therefore, it is recommended that the humanitarian logistics shall continue implementing custom-made ERPs due to the specificity of the sector. Additionally, as per the researchers’ experience, deploying the ERP first to the small missions and then to the big mission to monitor the ERP behavior and correct errors, are recommended. Finally, the private sector might also adapt its ERPs as each industry requires an individualized approach to eliminate impractical and expensive ERP modules.
5.2. Impacts of Implementing ERP Systems on the Organizational Performance
As per the analysis in Section 4, almost all of the respondents agreed that ERP systems have positive impacts on the organizational performance [2,13,18,25,26]. In this regard, 19 impacts were selected from the recent literature, published between 2015 to 2020, to compare which are similar in the humanitarian and private sectors. Following the collection of the responses, it was observed that supply chain ERP systems positively impact the performance of the organizations in different ways, and the impacts are similar in the humanitarian and private organizations, and the literature confirms it. Additionally, one impact, such as reducing cybersecurity risks, was not mentioned in the recent humanitarian literature. One impact, such as the impact on the improvement of communication between HQ and fields, was not mentioned in the private sector literature. Therefore, as these two impacts apply to both sectors, the researchers suggested adding them to the list.
It is essential to clarify a few points about the explored 16th and 17th impacts. Ref. [15] stated that an ERP impacts the reduction of fuel consumption. Ref. [22] stated that an ERP impacts on the proper tracking of the fleet. However, this study does not support these statements, as many respondents are unsure. It can be explained that many private and humanitarian organizations do not use the ERP fleet management module. Therefore, the researchers propose to investigate which organizations use this ERP module in the future. By analyzing the results from the Mann–Whitney test and the respondents’ answers, it can be concluded that H1 is rejected, and H0 is accepted. Thus, the supply chain ERP systems positively impact the organization’s performance, and the impacts after implementing the ERP systems are similar in the humanitarian and private organizations. Therefore, before the ERP implementation, it is recommended to make a list of impacts and share it with the concerned business teams and decision-makers as this will facilitate the decisions related to implementing the ERP systems. Furthermore, private and humanitarian organizations shall establish performance metrics with the ERP vendor(s) before the ERP design to monitor the progress and impacts on the organizational performance.
5.3. Limitations
This study is also limited as the participants may have provided biased information due to an unwillingness to respond honestly. The research could be biased when interpreting the quantitative data and make incorrect conclusions about the findings. The research did not include the complete list of ERP impacts from the older literature because the questionnaire was already lengthy. The results could be biased because the group samples were unequal. The research did not investigate which organizations still use paper-based or Excel systems as it was not the aim of this study. The research also did not provide the readers with the organizations’ names as the questionnaire was anonymized to obtain more responses and present the overall picture. The study did not capture the organizations’ size and their investments in ERPs, which might influence the organizational performance and impact of the ERPs.
5.4. Suggestions for Future Studies
Further research could be undertaken to investigate how many humanitarian and private organizations still use paper-based or Excel systems. It would also be interesting to find more ERP system usages and impacts in the older literature and compare the private and humanitarian sectors. Further study could include the size of the organizations and their investments in ERPs. Furthermore, based on the interview results, it was found that the fleet management module is rarely used. Thus, further research could investigate which humanitarian and private sector organizations use the fleet management ERP modules and how it supports the supply chain operations.
Author Contributions
Conceptualization, I.L.; formal analysis, I.L.; investigation, I.L.; resources, A.H.; supervision, A.K.; writing—review & editing, A.H. All authors have read and agreed to the published version of the manuscript.
Funding
This research received no external funding.
Institutional Review Board Statement
The study was approved by Management Virtual Programme Research Ethics Committee of University of Liverpool (Approval Code: H00069395; Approval Date: 28 July 2020).
Informed Consent Statement
Informed consent was obtained from all subjects involved in the study.
Data Availability Statement
Not applicable.
Conflicts of Interest
The authors declare no conflict of interest.
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Figure 1.
HELIOS modules (Fritz Institute, no date).
Figure 2.
Impact of ERPs on the humanitarian logistics performance, adapted by the researchers.
Table 1.
Different technologies in humanitarian organizations (source: self).
| Article(s) | Statement |
|---|---|
| [3,4] | The authors described UAV (unmanned aerial vehicle) technology for last-mile transportation. |
| [5] | The authors depicted the application of technology that improves inventory. |
| [6] | The authors depicted technology that manages information cloud computing. |
Table 2.
Challenges in the technology implementation in the humanitarian supply chain (source: self).
Table 2.
Challenges in the technology implementation in the humanitarian supply chain (source: self).
| Article | Statement |
|---|---|
| [9] | The authors emphasized the cost of technology, which hinders the implementation of the technology in the humanitarian supply chain. |
| [8] | The authors specified the challenges in implementing different supply chain technologies related to lack of skills and training, resource investment, and a lack of cooperation with technology providers. |
| [10] | The authors highlighted several problems in implementing different technologies in the humanitarian supply chains, such as challenges related to varying standards of supply chain partners, lack of appropriate testing of supply chain technology, and lack of expertise and training. |
Table 3.
Top 20 suppliers of supply chain management software (source: [24]).
Table 3.
Top 20 suppliers of supply chain management software (source: [24]).
| No. | Supplier | 2011 Revenue ($million) | URL | SCP | WMS | MES/ MRP | TMS |
|---|---|---|---|---|---|---|---|
| 1 | SAP | $1.018 | www.sap.com | x | x | x | x |
| 2 | Oracle | $935.6 | www.oracle.com | x | x | x | x |
| 3 | JDA Software | $368.5 | www.jda.com | x | x | ||
| 4 | Manhattan Associates | $141.5 | www.manh.com | x | x | x | |
| 5 | RedPrairie | $99.7 | www.redprairie.com | x | x | x | |
| 6 | Epicor | $92.9 | www.epicor.com | x | x | x | |
| 7 | Descartes Systems Group | $87.7 | www.descartes.com | x | |||
| 8 | Servigistics | $64 | www.servigistics.com | x | x | x | |
| 9 | Kawill Systems | $63.7 | www.kawill.com | x | |||
| 10 | IBS | $58 | www.ibsus.com | x | x | x | x |
| 11 | Totvs | $57.8 | www.totvs.com | x | x | x | |
| 12 | Logility | $52.3 | www.logility.com | x | x | x | |
| 13 | Lawson Software | $51 | www.lawson.com | x | x | x | x |
| 14 | Retalix | $50.9 | www.retalix.com | x | x | x | |
| 15 | IBM | $50.8 | www.ibm.com | x | |||
| 16 | Infor | $50.5 | www.infor.com | x | x | x | x |
| 17 | GTNexus | $46.2 | www.gtnexus.com | x | x | ||
| 18 | HighJump Software | $45.8 | www.highjumpsoftware.com | x | x | ||
| 19 | Quintiq | $39.5 | www.quintiq.com | x | x | x | |
| 20 | Accellos | $35 | www.accellos.com | x | x |
Source: Revenue estimates provided by Gartner (www.gartner.com accessed on 2 July 2020) except for Retalix, which the company provided.
Table 4.
Survey development and structure.
| Survey Sections | Number of Items | Reliability Test (Cronbach’s Alpha) | Scales Used |
|---|---|---|---|
| General Information. | 7 | ||
| Types of ERP systems used. | |||
| Impacts of ERP after the implementation on the performance of the organization. | 19 | 0.921 | (1) Strongly agree; (2) Agree; (3) Not sure; (4) Disagree and (5) Strongly disagree. |
Table 5.
Profile of Participants.
| Question | Humanitarian (%) (n = 50) | Private (%) (n = 53) |
|---|---|---|
| Sector | 48.54 | 51.45 |
| Job Profile | ||
| Supply Chain (Logistics) Executives | 44.0 | 49.0 |
| Middle Supply Chain (Logistics) Professionals | 46.0 | 30.2 |
| Junior Supply Chain (Logistics) Professionals | 0 | 13.2 |
| Supply Chain (Logistics) Consultant | 10.0 | 7.5 |
| Location of Organizations’ Headquarters | ||
| North America | 40.0 | 35.84 |
| Europe | 56.0 | 28.29 |
| Asia | 2.0 | 30.19 |
| Australia | 2.0 | 1.89 |
| Africa | 0.0 | 3.78 |
| Experience in ERP implementation (years) | ||
| Less than 1 | 2.0 | 3.8 |
| 1–3 | 24.0 | 13.2 |
| 3–5 | 50.0 | 37.0 |
| 5–10 | 20.0 | 26.4 |
| 10+ | 4.0 | 18.9 |
| Years of usage of ERP systems in organizations | ||
| Plan to implement | 4.0 | 5.7 |
| Less than 1 | 12.0 | 3.8 |
| 1–5 | 74.0 | 39.6 |
| 6–10 | 6.0 | 30.2 |
| 11–15 | 2.0 | 13.2 |
| 15+ | 2.0 | 7.5 |
Table 6.
Types of ERP systems used (custom-made vs. ready-to-use).
| Humanitarian Sector | Private Sector | |||
|---|---|---|---|---|
| Asked Statement | No. of Responses | Percentage | No. of Responses | Percentage |
| We implemented a custom-based ERP system | 34 | 68% | 15 | 28.3% |
| We are going to implement a custom-based ERP system | 1 | 2% | 0 | 0 |
| We are currently implementing a custom-based ERP system | 4 | 8% | 2 | 3.8% |
| We implemented the ready-to-use product | 7 | 14% | 32 | 60.4% |
| We are going to implement the ready-to-use product | 8 | 0% | 3 | 5.7% |
| We are currently implementing the ready-to-use product | 4 | 8% | 1 | 1.9% |
| Total | 50 | 53 | ||
Table 7.
Reported types of ERP systems used in both the humanitarian and private sectors.
| SAP | Oracle | Infor | Unified | ELO | Navision | LINK | Admin | Other | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Humanitarian Sector | (%) | 4.0 | 8.0 | 0.0 | 6.0 | 2.0 | 2.0 | 16.0 | 8.0 | 54.02 |
| Responses | 2 | 4 | 0 | 6 | 2 | 2 | 8 | 4 | 27 | |
| Private Sector | (%) | 35.8 | 9.4 | 3.8 | 0.0 | 0.0 | 1.9 | 0.0 | 0.0 | 49.1 |
| Responses | 19 | 5 | 2 | 0 | 0 | 1 | 0 | 0 | 26 |
Table 8.
Impacts of implementing ERP systems on the performance of humanitarian organizations.
| Impact | Mann–Whitney Test | Percentage of Responses (%) | Item is Supported | |||||
|---|---|---|---|---|---|---|---|---|
| Strongly Disagree | Disagree | Not Sure | Agree | Strongly Agree | ||||
| 1 | Reduction of operational costs | 0.525 | 0.0 | 4.0 | 6.0 | 24.0 | 16.0 | Yes |
| 2 | Improvement of the management of resources | 0.771 | 0.0 | 4.0 | 0.0 | 42.0 | 54.0 | Yes |
| 3 | Improvement of the coordination and cooperation between different departments | 0.041 | 4.0 | 18.0 | 0.0 | 22.0 | 56.0 | Yes |
| 4 | Improvement of reporting | 0.713 | 00 | 0.0 | 2.0 | 12.0 | 86.0 | Yes |
| 5 | Improvement of information sharing | 0.808 | 0.0 | 0.0 | 2.0 | 20.0 | 78.0 | Yes |
| 6 | Reduction of cybersecurity risks | 0.580 | 0.0 | 6.0 | 12.0 | 36.0 | 46.0 | Yes |
| 7 | Reduction of inventory levels | 0.742 | 0.0 | 4.0 | 20.0 | 34.0 | 42.0 | Yes |
| 8 | Improvement of decision-making rapidity | 0.211 | 0.0 | 2.0 | 2.0 | 34.0 | 62.0 | Yes |
| 9 | Reduction of human mistakes | 0.035 | 0.0 | 0.0 | 0.0 | 14.0 | 86.0 | Yes |
| 10 | Reductions of thefts in the warehouses | 0.680 | 0.0 | 12.0 | 16.0 | 34.0 | 38.0 | Yes |
| 11 | Improvement of control over the supply chain workflow | 0.181 | 0.0 | 2.0 | 8.0 | 38.0 | 52.0 | Yes |
| 12 | Improvement of the order cycle time | 0.756 | 0.0 | 12.0 | 24.0 | 30.0 | 34.0 | Yes |
| 13 | Improvement of on-time delivery | 0.032 | 0.0 | 2.0 | 12.0 | 22.0 | 64.0 | Yes |
| 14 | Impact on the interaction with suppliers | 0.977 | 0.0 | 2.0 | 16.0 | 48.0 | 34.0 | Yes |
| 15 | Reduction of fuel consumption | 0.334 | 2.0 | 8.0 | 70.0 | 16.0 | 4.0 | No |
| 16 | Proper tracking of fleet | 0.093 | 2.0 | 4.0 | 68.0 | 20.0 | 6.0 | No |
| 17 | Improvement of communication between HQ and fields | 0.008 | 0.0 | 0.0 | 0.0 | 28.0 | 72.0 | Yes |
| 18 | Improvement of the effectiveness and productivity of the supply chain personnel | 0.385 | 0.0 | 0.0 | 4.0 | 36.0 | 50.0 | Yes |
| 19 | Improvement of the supply chain visibility | 0.119 | 0.0 | 0.0 | 2.0 | 16.0 | 82.0 | Yes |
Table 9.
Impacts of implementing ERP systems on the performance of private sector organizations.
| Impact | Mann–Whitney test | Percentage of Responses (%) | Item is Supported | |||||
|---|---|---|---|---|---|---|---|---|
| Strongly Disagree | Disagree | Not Sure | Agree | Strongly Agree | ||||
| 1 | Reduction of operational costs | 0.525 | 1.9 | 3.9 | 11.3 | 45.3 | 37.7 | Yes |
| 2 | Improvement of the management of resources | 0.771 | 0.0 | 0.0 | 0.0 | 49.1 | 50.9 | Yes |
| 3 | Improvement of the coordination and cooperation between different departments | 0.041 | 0.0 | 0.0 | 7.5 | 54.7 | 37.7 | Yes |
| 4 | Improvement of reporting | 0.713 | 0.0 | 0.0 | 0.0 | 17.0 | 83.0 | Yes |
| 5 | Improvement of information sharing | 0.808 | 0.0 | 0.0 | 0.0 | 24.5 | 75.5 | Yes |
| 6 | Reduction of cybersecurity risks | 0.580 | 0.0 | 9.4 | 9.4 | 26.4 | 54.7 | Yes |
| 7 | Reduction of inventory levels | 0.742 | 3.8 | 5.7 | 15.1 | 35.8 | 39.6 | Yes |
| 8 | Improvement of decision-making rapidity | 0.211 | 0.0 | 1.9 | 7.5 | 39.5 | 50.9 | Yes |
| 9 | Reduction of human mistakes | 0.035 | 0.0 | 1.9 | 7.5 | 20.3 | 68.9 | Yes |
| 10 | Reductions of thefts in the warehouses | 0.680 | 1.9 | 3.8 | 18.9 | 35.8 | 39.6 | Yes |
| 11 | Improvement of control over the supply chain workflow | 0.181 | 0.0 | 0.0 | 1.9 | 58.5 | 39.6 | Yes |
| 12 | Improvement of the order cycle time | 0.756 | 0.0 | 1.9 | 1.9 | 50.9 | 46.3 | Yes |
| 13 | Improvement of on-time delivery | 0.032 | 0.0 | 3.8 | 13.2 | 43.4 | 39.6 | Yes |
| 14 | Impact on the interaction with suppliers | 0.977 | 0.0 | 3.8 | 13.2 | 49.1 | 34.0 | Yes |
| 15 | Reduction of fuel consumption | 0.334 | 3.8 | 5.7 | 60.4 | 24.5 | 5.7 | No |
| 16 | Proper tracking of fleet | 0.093 | 0.0 | 1.9 | 58.5 | 28.3 | 11.3 | No |
| 17 | Improvement of communication between HQ and fields | 0.008 | 0.0 | 1.9 | 9.4 | 39.6 | 49.1 | Yes |
| 18 | Improvement of the effectiveness and productivity of the supply chain personnel | 0.385 | 0.0 | 1.9 | 1.9 | 46.3 | 50.9 | Yes |
| 19 | Improvement of the supply chain visibility | 0.119 | 0.0 | 0.0 | 0.0 | 32.` | 67.9 | Yes |
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Lukyanova, I.; Haddud, A.; Khare, A. Types of ERP Systems and Their Impacts on the Supply Chains in the Humanitarian and Private Sectors. Sustainability 2022, 14, 13054. https://doi.org/10.3390/su142013054
AMA Style
Lukyanova I, Haddud A, Khare A. Types of ERP Systems and Their Impacts on the Supply Chains in the Humanitarian and Private Sectors. Sustainability. 2022; 14(20):13054. https://doi.org/10.3390/su142013054
Chicago/Turabian StyleLukyanova, Iryna, Abubaker Haddud, and Anshuman Khare. 2022. "Types of ERP Systems and Their Impacts on the Supply Chains in the Humanitarian and Private Sectors" Sustainability 14, no. 20: 13054. https://doi.org/10.3390/su142013054
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