The Influence of Implementing Enterprise Resource Planning (ERP), Human Capital Management (HCM), and Supply Chain Management (SCM) to Enhance Company's Performance Effectiveness

The increasingly growing economic development in Indonesia has intensified competition among companies. This competitive environment can be explained by the rapid changes stemming from technological advancements, global political-economic stability, and the globalization of trade. As such, businesses need to address customer wants in a way that is both competitive and efficient and to produce goods and services that add value while keeping expenses to a minimum. This is to make sure that businesses make more money from the value of the expenses they incur in producing things for customers. Therefore, companies must exhibit strong performance to thrive in this competitive landscape. This study documents the implementation of Enterprise Resource Planning (ERP), Human Capital Management (HCM), and Supply Chain Management (SCM) that has shown to be an important strategy to increase the effectiveness of a company. ERP is becoming a key point for optimization for companies to increase their productivity so they can make products with better quality. Many of these companies have business management in carrying out product creation operations, namely Supply Chain Management (SCM). HCM is an important set of practices because by having good processes to hire the right people and manage the workforce effectively, companies can ensure that their productivity is optimized. The tool that is being used in this study to gather data is questionnaire. Analysis of the data will be carried out using SmartPLS. The survey questionnaire was distributed online and contained 5 points ranging from strongly disagree with a value of 1 to strongly agree with a value of 5.

I. Introduction (Heading 1)

In today's rapidly evolving business environment, numerous companies depend on sophisticated technology to handle their intricate operations [1]. many of those software programs have been incorporated into application suites like Enterprise Resource Planning [2]. There is a positive contribution of ERP on business's performance “which in their case was a chemical company [3]. ERP system in managing a business is very helpful as it provides information on inventory management and control, thus solving inventory management problems[4]. ERP process information to be integrated across departments such as marketing, sales, manufacturing, logistics, accounting, and human resources [5]. The benefits obtained in the implementation of an ERP-based inventory system include facilitating good business flow control and accurate data because data collection is done in real-time during transactions as companies with ERP systems have higher inventory turnover, fixed asset turnover, and sales changes compared to those without ERP systems [6]. On the other hand, information technology investments can present chances to boost output and enhance operational procedures [7]. ERP systems are particularly useful in corporate management because they solve inventory management issues by providing information regarding inventory control and management [4]. The primary advantages of implementing ERP-based inventory systems are essentially the facilitation of good business flow control, where all company data is collected promptly during initial transactions, stored, and processed centrally, and accurate data because data collection is done in real-time during transactions [8]–[10].