B. D. Rouyendegh i dr. Odabir sektora za primjenu ERP-a u cilju što boljeg djelovanja na učinak nabavnog lanca primjenom AHP-TOPSIS hibridne metode ISSN 1330-3651(Print), ISSN 1848-6339 (Online) UDC/UDK 658.71.015(560) SECTOR SELECTION FOR ERP IMPLEMENTATION TO ACHIEVE MOST IMPACT ON SUPPLY CHAIN PERFORMANCE BY USING AHP-TOPSIS HYBRID METHOD Babak Daneshvar Rouyendegh, Uğur Baç, Turan Erman Erkan Original scientific paper Recently, studies about the Enterprise Resource Planning (ERP) have been increased and this research area has attracted more attention. Especially, in the global competition environment, enterprises have to focus on their Information Systems (IS) performance to have a competitive advantage; implementing an ERP system and improving the effectiveness of the system is the only way. However every sector reacts to ERP implementation differently. Purpose of this study is to rank the sectors according to their performance increments after successful ERP implementations by using AHP-TOPSIS hybrid method. As a result, general structure of Turkish companies will be pictured and the sectors which have the most chance to improve their performance by utilizing an ERP system will be defined. These findings will help the companies to plan the implementation process more precisely and help the managers of these companies to define their expectations more clearly. A numerical example is given to clarify the main developed result in this paper. Keywords: AHP-TOPSIS, ERP implementation, sector selection, supply chain performance Odabir sektora za primjenu ERP-a u cilju što boljeg djelovanja na učinak nabavnog lanca primjenom AHP-TOPSIS hibridne metode Izvorni znanstveni članak U zadnje se vrijeme povećao broj radova o planiranju resursa poduzeća (ERP) te je to područje istraživanja privuklo više pažnje. Naročito, kad se radi o svjetskoj konkurenciji, poduzeća se moraju usmjeriti na rad svojih informatičkih sustava (IS) ako žele steći prednost, a jedini način za to je primjena ERP sustava i povećanje njegove učinkovitosti. Međutim svaki pojedini sektor drugačije reagira na primjenu ERP-a. Cilj je ovoga rada rangirati sektore prema porastu učinkovitosti nakon uspješne primjene ERP-a, korištenjem AHP-TOPSIS hibridne metode. Kao rezultat, dobit će se slika opće strukture turskih kompanija i definirat će se sektori koji imaju najbolje izglede za poboljšanje radne učinkovitosti primjenom ERP sustava. Ti će rezultati pomoći kompanijama u preciznijem planiranju procesa implementacije i rukovodećim ljudima u jasnijem definiranju njihovih očekivanja. Daje se numerički primjer u svrhu razjašnjenja glavnog dobivenog rezultata u radu. Ključne riječi: AHP-TOPSIS, izbor sektora, primjena ERP-a, učinkovitost nabavnog lanca 1 Introduction In the modern world, competition is no longer between organizations, but among supply chains (SCs)[1]. Enterprises must compete against one another in order to survive. As the global economy continues to grow, enterprises are no longer competing independently but rely on their supply chain systems. Effective supply chain management (SCM) has therefore become a potentially valuable way of securing a competitive advantage and improving organizational performance [2-3]. New supply chain management concepts are helping managers to successfully run their firms in the new environment which is necessary to effectively respond to supplier and customer requirements and to achieve a better organizational performance. Therefore, implementing quick-response strategy is vital as modeled throughout the 1990’s as stated by Hammond [4] and Lowson [5] to improve competitiveness. Various performance metrics have been developed to measure, evaluate, and monitor the operation of the entire supply chain. Lockamy and McCormack [6] indicated in their research that there were only a small number of studies attempting to empirically link specific SCM practices such as quality assurance to SC performance. Additionally, the conceptualization of a supply chain quality assurance system is incomplete, leaving out the important central link of SC process decisions and performance metrics [7-8]. The appropriate performance metrics can be used to evaluate the probability of success in achieving the target, to provide advice or corrective suggestions to the organization, to provide a feedback system to the manager and to evaluate the internal input and output [9]. However, if the metrics within a supply chain lack consistency, it is difficult for managers to take the appropriate actions based on the performance evaluation [10]. The benefits of SCM include cost savings through reductions in inventory and costs of transaction across the SC, faster response to changes in the market demands, lower product development, and increased competitiveness and profitability [11]. In order to achieve these benefits, one should consider the performance of supply chain along with all its channels. For this purpose, it would be enough to use some performance measures to efficiently manage an effective SC. These measures have an important role since they affect strategic, tactical, and operational planning and control. Performance measurement and metrics are essential in setting objectives, evaluating performance, and determining future courses of actions [12]. The current trend of SCM is to apply information technology to integrate cross-enterprises and inter- enterprise processes [13]. The link between Information Technology (IT) use and the simultaneous design of business processes is a vital ingredient to bring a benefit from such development efforts. In fact, in practice it is often difficult to separate the origin of the benefit, whether it has derived from IT, a process change, or both [14]. The literature reveals the necessity for adopting IT to foster information sharing in a supply chain [15, 16], the use of Enterprise Resource Planning (ERP) systems [17, 18]. Tehnički vjesnik 21, 5(2014), 933-937 933