Implementation of fashion ERP systems in China: Case study of a fashion brand, review and future challenges

Abstract

Enterprise resource planning (ERP) systems have been widely applied in the fashion industry. An ERP system is a cross-functional system which integrates various units in the company with an attempt to shorten processing time, increase responsiveness, and achieve competitive advantages. Among all the modules popularly included in an ERP system, there is a critical one called the order-to-cash (OTC) module. In this paper, Levi Strauss & Co. in China-Hong Kong (LSCO-CHK) is selected as the target case company. Via semi-structured interviews and discussions with some staff members of the company, we examine the implementation of OTC module in LSCO-CHK's ERP system. The benefits and the problems encountered during the system development process are examined. Based on the case study results, and the extensive literature review, we conclude that whether implementing fashion ERP systems in China can successfully enhance production and operations management relies on many measures which include (i) understanding the “human mindset” of Chinese society, (ii) showing full respect to the staff members during the implementation process, (iii) emphasizing the importance of guanxi with both internal staff members and external business partners, (iv) providing attractive tangible and intangible incentives to participants. We argue that if the above measures are well-taken, implementing technological information systems solutions in China can be more successful than the ones in the western countries because of the Chinese cultural merit which treasures “cooperation” when Chinese people feel respected. Finally, future challenges and research opportunities on implementing fashion ERP systems in China are explored.