Thai herbal supply chain connectivity: analyzing its visibility via process capability

Abstract

The paper explores the impact of implementing an Enterprise Resource Planning (ERP) system on the efficiency of the Thai herbal supply chain, focusing on the visibility index as a measure of process capability. With the backdrop of the National Master Plan for Thai Herb Development and increased governmental focus on the herbal industry, this study investigates the effects of enhanced connectivity on supply chain operations. Methodologically, the research employs Lee and Rim's visibility quantification model, utilizing a Monte Carlo simulation approach to assess the visibility before and after ERP implementation. The study, situated in northern Thailand, specifically examines the supply chain of Limonella plants, a key medicinal herb. Results indicate a significant improvement in supply chain visibility following ERP implementation, leading to expedited delivery lead times. The findings underscore the pivotal role of ERP systems in fostering information sharing and coordination among supply chain stakeholders. While acknowledging limitations in data availability, the research underscores the need for further exploration using real-world data to enhance the realism of the findings. Overall, the study contributes to understanding the practical implications of ERP adoption in enhancing supply chain efficiency and underscores avenues for future research in this domain.