The Effect of DRP Automation on Supply Chain Management in the Egyptian FMCG Industry

Abstract

This paper examines the automation of supply chain management through the implementation of Distribution Requirements Planning (DRP) automation project using Enterprise Resource Planning (ERP) system. A central question is addressed in this paper: from a resource-based view, what is the effect of the DRP automation through ERP system on the supply chain management in the Egyptian Fast-Moving Consumer Goods (FMCG) industry? Adopting a case study methodology in a leading Egypt-based manufacturer 'Juhayna Food Industries', this study is the first of its kind to provide a thorough analysis of the implementation of a DRP automation project using an ERP system and its effect on supply chain management, focusing on the informational flow of goods in the Egyptian FMCG industry. The study demonstrates that the automation of DRP using ERP systems has a positive and significant impact on supply chain functions including supply and demand planning, procurement, production, warehouses, and logistics in the Egyptian FMCG industry, improving data accuracy and efficiency. This research will help FMCG companies in their planning and distribution practices for the supply chain management of their products.