Assessment of enterprise resource planning systems in the private sector: A case of Rwenzori Bottling Company Limited

Abstract

This study sought to assess the impact of Enterprise Resource Planning systems on the performance of Rwenzori Bottling Company Limited. This is because despite putting in place an ERP system to streamline internal operations, RBCL has continued to face declining efficiency and effectiveness in its operations, with rising complaints about meeting service level agreements with key stakeholders in the company. Hence the research objectives were to assess the role of ERP system used in Rwenzori Bottling Company Limited and to assess the relationship between ERP system and organizational performance in Rwenzori Bottling Company Limited. The study adopted a cross sectional survey design using a mixed methods approach. A sample of 152 respondents’ selected using simple random sampling technique comprised the staff working at RBCL in the operations, marketing, sales and distribution, finance, ICT and the production departments. Both qualitative and quantitative data was used. It was found that RBCL uses an ERP system for its day-to-day internal operations, across different the different company departments. This system has been put in place in recent years, and has replaced a manual system which was previously in place. The ERP system has the potential to improve cost reduction and provision of management information. It has not directly influenced the revenues of the company but it has made the process of running internal operations smoother and more streamlined with real time information at the click of a button. Rwenzori Bottling Company Limited needs to increase access to the ERP across the organisation to the line supervisors because they are currently restricted from receiving this real-time information yet they are the ones who need it most. Training of staff in the use of the ERP needs to be undertaken on a regular basis so that they can fully exploit its usefulness to the company.