Driving Efficiency and Competitiveness: Trends and Innovations in ERP Systems for the Wood Industry
Abstract
:1. Introduction
2. Essential Factors for Effective ERP Implementation: A Comprehensive Review
- Industry Adaptability: ERP systems specifically tailored to the needs of the wood processing industry can play a crucial role in increasing process efficiency, inventory management, and cost tracking. For example, functionalities specific to tracking raw material movement, batch tracking, and quality management support can be critical for success in this sector;
- Integration with Production Machinery: Various production machinery is used for material processing in the wood processing industry. Integrating ERP systems with these machines enables automatic data collection on production, performance monitoring, and optimization of manufacturing processes;
- Warehouse Management: For the wood processing industry, effective warehouse management is crucial due to the wide range of different materials involved, such as basic wooden materials, finished products, wooden residues, waste materials, and auxiliary, non-wood materials such as glue, varnish, sandpaper, and similar. ERP systems that provide advanced inventory tracking and management capabilities can help minimize losses, optimize inventory, and improve production planning;
- Supply Chain Tracking: The wood processing industry often involves complex supply chains with multiple raw material suppliers, distributors, and end users. ERP systems that enable supply chain tracking and provide real-time data on inventory status, delivery, and planning can enhance efficiency and reduce the risk of supply disruptions.
3. Discussion on Contemporary Trends in ERP Implementation
3.1. Cloud-Based ERP
3.2. Mobility Available
3.3. Integration Capabilities
3.4. ERP Data Security
3.5. User Experience
3.6. Flexibility and Customization
3.7. Artificial Intelligence (AI)
3.8. Scalability
4. Summary of ERP Implementation in the Wood Industry
5. Conclusions
Author Contributions
Funding
Data Availability Statement
Conflicts of Interest
References
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Critical Success Factors (CSFs) | References |
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Top management commitment Top management’s interest in participation. Use of managerial and professional steering committees. Readiness to use contemporary technologies. Gaining knowledge of the company’s requirements, potential, and IT limits. Involvement of all levels of management in decision-making during the implementation process. | Brown and Vessey 1999 [35]; Holland and Light 1999 [15]; Bingi et al., 1999 [14]; Sumner 1999 [36]; Davenport 2000 [37]; Esteves and Pastor 2000 [38]; Al-Mudimigh et al., 2001 [39]; Somers and Nelson 2001 [40]; Nah et al., 2001 [41]; Akkermans and van Helden 2002 [42]; Al-Mashari et al., 2003 [43]; Brown and Vessey 2003 [44]; Somers and Nelson 2003 [45]; Somers and Nelson 2004 [46]; Yusuf et al., 2004 [47]; Ehie and Madsen 2005 [8]; O’Leary 2005 [48]; Wong et al., 2005 [49]; Ifinedo and Nahar 2007 [50]; Finney and Corbett 2007 [51]; Ngai et al., 2008 [52]; Françoise 2009 [1], Ahmad et al., 2013 [22], Kiran et al., 2019 [53], Barth and Koch 2019 [54], Huang et al., 2019 [55], Kurnia et al., 2019 [56], Perić et al., 2019 [33], Vargas and Comuzzi 2019 [57], Kirmizi et al., 2022 [26]. |
ERP software compatibility Suitable software and hardware considerations. Customization level. Integrating systems and ensuring their database dependability. Providing system adaptability to shifting circumstances. Ensuring the compatibility of systems. Technology Infrastructure. | Holland and Light 1999 [15]; Davenport 2000 [37]; Esteves and Pastor 2000 [38]; Al-Mudimigh et al., 2001 [39]; Nah et al., 2001 [41]; Lee and Lee 2001 [58]; Hong and Kim 2002 [12]; Al-Mashari et al., 2003 [43]; Kumar et al., 2003 [59]; Yusuf et al., 2004 [47]; Zhang et al., 2005 [60]; Wong et al., 2005 [49]; Finney and Corbett 2007 [51]; Ngai et al., 2008 [52]; Françoise 2009 [1], Esteves 2013 [61], Kiran et al., 2019 [53], Barth and Koch 2019 [54], Huang et al., 2019 [55], Kurnia et al., 2019 [56], Vargas and Comuzzi 2019 [57]; Kirmizi et al., 2022 [26]. |
Consultant support Honest and transparent dialogue. Estimating the cost of implementing ERP. Specific performance metrics and planning to ensure adequate time for implementation. A systematic approach to making decisions. IT and company’s strategic coordination. | Welti 1999 [62]; Sumner 1999 [36]; Holland and Light 1999 [15]; Buckhout et al., 1999 [63]; Brown and Vessey 1999 [35]; Bingi et al., 1999 [18]; Davenport 2000 [37]; Esteves and Pastor 2000 [38]; Somers and Nelson 2001 [40]; Nah et al., 2001 [41]; Lee and Lee 2001 [58]; Al-Mudimigh et al., 2001 [39]; Akkermans and van Helden 2002 [42]; Hong and Kim 2002 [12]; Brown and Vessey 2003 [44]; Al-Mashari et al., 2003 [49]; Yusuf et al., 2004 [47]; Zhang et al., 2005 [60]; Wong et al., 2005 [49]; Gargeya and Brady 2005 [64]; Ehie and Madsen 2005 [8]; O’Leary 2005 [48]; Ifinedo and Nahar 2007 [50]; García-Sánchez and Pérez-Bernal 2007 [65]; Finney and Corbett 2007 [51]; Ngai et al., 2008 [52]; Françoise 2009 [1], Ahmad et al., 2013 [22], Esteves 2013 [61], Ram et al., 2013 [66], Kiran et al., 2019 [53], Phaphoom et al., 2018 [67], Huang et al., 2019 [55], Kurnia et al., 2019 [56], Moeuf et al., 2019 [68], Perić et al., 2019 [1], Vargas and Comuzzi 2019 [57]; Kirmizi et al., 2022 [26]. |
Data management Creating a plan for data analysis. Data quality assurance and accuracy. Creating a data conversion strategy, creating a plan for data accuracy. Effective communication within the entire company. Data Conversion and Integration. | Brown and Vessey 1999 [35]; Bingi et al., 1999 [18]; Welti 1999 [62]; Sumner 1999 [36]; Somers and Nelson 2001 [40]; Nah et al., 2001 [41]; Hong and Kim 2002 [12]; Zhang et al., 2005 [60]; Esteves and Pastor 2006 [38]; Finney and Corbett 2007 [51]; Ngai et al., 2008 [52]; Jafari et al., 2009 [1], Ahmad et al., 2013 [22], Esteves 2013 [61], Phaphoom et al., 2018 [67], Barth and Koch 2019 [54], Huang et al., 2019 [54], Kurnia et al., 2019 [56], Moeuf et al., 2019 [68], Vargas and Comuzzi 2019 [57]. |
Software maintenance Formulating a strategy for interface testing with integrated legacy systems. Developing effective troubleshooting methods and skills. Testing and troubleshooting in Software development time. Creating suitable troubleshooting tools. Working closely with software experts and vendors. | Holland and Light 1999 [15]; Esteves and Pastor 2000 [38]; Somers and Nelson 2001 [40]; Nah et al., 2001 [41]; Al-Mashari et al., 2003 [43]; Loh and Koh 2004 [69]; Ifinedo and Nahar 2007 [50]; Finney and Corbett 2007 [51]; Ngai et al., 2008 [52]; Françoise 2009 [1], Kiran et al., 2019 [53], Phaphoom et al., 2018 [67], Moeuf et al., 2019 [68], Perić et al., 2019 [1], Vargas and Comuzzi 2019 [57]; Mahraz et al., 2020 [70], Kirmizi et al., 2022 [26], Brandtner 2023 [71]. |
Project Management A well-defined project plan with tight control over change requests. Planning required upgrades and choosing realistic deadlines. Knowledge transfer management. Management of conflicts. Management of legacy systems. Risk and expectation management. | Buckhout et al., 1999 [63]; Holland and Light 1999 [15]; Welti 1999 [62]; Bingi et al., 1999 [18]; Brown and Vessey 1999 [35]; Sumner 1999 [36]; Davenport 2000 [37]; Esteves and Pastor 2000 [38]; Somers and Nelson 2001 [40]; Nah et al., 2001 [41]; Lee and Lee 2001 [58]; Akkermans and van Helden 2002 [42]; Kumar et al., 2003 [59]; Yusuf et al., 2004 [47]; Dowlatshahi 2005 [72]; Zhang et al., 2005 [58]; Wong et al., 2005 [49]; O’Leary 2005 [48]; Ifinedo and Nahar 2007 [50]; Finney and Corbett 2007 [51]; Ngai et al., 2008 [52]; Françoise 2009 [1], Ahmad et al., 2013 [22], Phaphoom et al., 2018 [67], Barth and Koch 2019 [54], Huang et al., 2019 [55], Vargas and Comuzzi 2019 [57]; Mahraz et al., 2020 [70], Kirmizi et al., 2022 [26]. |
Education and training Education and training of technical and support staff. Management for interdepartmental communication and coordination. Education and training of end users. Education on future business processes. Developing a clear education and training plan. | Brown and Vessey 1999 [35]; Bingi et al., 1999 [18]; Sumner 1999 [36]; Davenport 2000 [37]; Esteves and Pastor 2000 [38]; Al-Mudimigh et al., 2001 [39]; Somers and Nelson 2001 [40]; Lee and Lee 2001 [58]; Kumar et al., 2003 [59]; Dowlatshahi 2005 [72]; Gargeya and Brady 2005 [64]; Wong et al.,ć 2005 [49]; Zhang et al., 2005 [58]; Ifinedo and Nahar 2007 [50]; Finney and Corbett 2007 [51]; Ngai et al., 2008 [52], Esteves 2013 [61], Phaphoom et al., 2018 [67], Barth and Koch 2019 [54], Huang et al., 2019 [55], Kurnia, et al., 2019 [56], Moeuf et al., 2019 [68], Perić et al., 2019 [1], Vargas and Comuzzi 2019 [57]; Mahraz et al., 2020 [70], Kirmizi et al., 2022 [26]. |
ERP selection and reengineering Teamwork between ERP and end users. ERP Vendors Relations and Choice. The professional and wary package selection procedure. Planning the package selection process. ERP system and business process compatibility. Business process reengineering and change. Process adaptation level. Alignment of the business with the new system. | Holland and Light 1999 [15]; Bingi et al., 1999 [18]; Brown and Vessey 1999 [35]; Sumner 1999 [36]; Esteves and Pastor 2000 [38]; Somers and Nelson 2001 [40]; Akkermans and van Helden 2002 [42]; Hong and Kim 2002 [12]; Al-Mashari et al., 2003 [43]; Kumar et al., 2003 [59]; Gargeya and Brady 2005 [64]; Wong et al., 2005 [49]; Garcia-Sanchez and Perez-Bernal 2007 [65]; Finney and Corbett 2007 [51], Kiran et al., 2019 [53], Phaphoom et al., 2018 [67], Barth and Koch 2019 [54], Huang et al., 2019 [55], Kurnia et al., 2019 [56], Moeuf et al., 2019 [68], Vargas and Comuzzi 2019 [57]; Mahraz et al., 2020 [70], Kirmizi et al., 2022 [26]. |
End user’s ERP involvement User involvement in the overall process strategy. Participation of users in developing new procedures. Cooperation among workers. Increasing user confidence. Encouraging user use of ERP to fulfill cross-functional areas. | Holland and Light 1999 [15]; Bingi et al., 1999 [18]; Markus and Tanis 2000 [73]; Davenport 2000 [37]; Esteves and Pastor 2000 [38]; Somers and Nelson 2001 [40]; Lee and Lee 2001 [58]; Akkermans and van Helden 2002 [42]; Somers and Nelson 2003 [46]; Yusuf et al., 2004 [47]; Somers and Nelson 2004 [45]; Dowlatshahi 2005 [72]; O’Leary 2005 [48]; Garcia-Sanchez and Perez-Bernal 2007 [65]; Finney and Corbett 2007 [51]; Ngai et al., 2008 [52]; Françoise 2009 [1], Esteves 2013 [61], Mahmud et al., 2017 [1], Perić et al., 2019 [33], Vargas and Comuzzi 2019 [57]; Mahraz et al., 2020 [70], Kirmizi et al., 2022 [26]. |
Change Management Program of Change Management. Reasonable expectations with a definite target. Organizational resistance to change. Conflicts between user departments. Managing conflicts and arguments for change. | Brown and Vessey 1999 [35]; Buckhout et al., 1999 [63]; Davenport 2000 [37]; Esteves and Pastor 2000 [38]; Somers and Nelson 2001 [40]; Nah et al., 2001 [41]; Lee and Lee 2001 [58]; Akkermans and van Helden 2002 [42]; Hong and Kim 2002 [12]; Al-Mashari et al., 2003 [43]; Brown and Vessey 2003 [44]; Yusuf et al., 2004 [47]; Wong et al., 2005 [49]; Zhang et al., 2005 [58]; Ifinedo and Nahar 2007 [50]; Finney and Corbett 2007 [51]; Ngai et al., 2008 [52]; Françoise 2009 [1]. |
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Vukman, K.; Klarić, K.; Greger, K.; Perić, I. Driving Efficiency and Competitiveness: Trends and Innovations in ERP Systems for the Wood Industry. Forests 2024, 15, 230. https://doi.org/10.3390/f15020230
Vukman K, Klarić K, Greger K, Perić I. Driving Efficiency and Competitiveness: Trends and Innovations in ERP Systems for the Wood Industry. Forests. 2024; 15(2):230. https://doi.org/10.3390/f15020230
Chicago/Turabian StyleVukman, Karla, Kristina Klarić, Krešimir Greger, and Ivana Perić. 2024. "Driving Efficiency and Competitiveness: Trends and Innovations in ERP Systems for the Wood Industry" Forests 15, no. 2: 230. https://doi.org/10.3390/f15020230