Selection of ERP system and the best practice by hybrid method: A case study of Thai automotive supply chain network

Abstract

Enterprise Resource Planning (ERP) gives an organization a competitive edge by centralizing organization data and collaborating among supply chain networks. There are many types of software packages available, so most of the research proposed methods for prioritizing the best system. However, they did not suggest how to implement it, or which practices should be employed. So, this paper aims to propose a framework and a method for the selection of an ERP system and the best practice for implementation at the same time. A hybrid method of Logarithmic Fuzzy Preference Programming (LFPP) and Decision-Making Trial and Evaluation Laboratory (DEMATEL) is presented for solving the problem. LFPP is reliable in obtaining weights, while DEMATEL can capture interrelationships between practices. It was applied to a case study supply chain network of a Thai automotive parts manufacturer to demonstrate the applicability; it could establish the priorities of criteria, rank alternatives, and select the appropriate practices at the same time. There is no study about software and practice selection by use of this proposed method before. The comparison of LFPP and the Fuzzy Full Consistency Method (FUCOM-F) was also performed. It shows that FUCOM-F uses a smaller number of pairwise comparisons than LFPP, but the obtained weights of LFPP are more consistent with the evaluation matrix than using FUCOM-F.