ASSESSING THE IMPACT OF SUPPLY CHAIN MANAGEMENTSOFTWARE ON COMPANY PERFORMANCE

This study examines the impact of supply chain management (SCM) software on company performance using a combination of financial and market measures. Specifically, we measure the performance of a sample of 75 companies announcing SCM software investments between 1996 and 1999 against the performance of the companies in the S&P 500 on the following metrics: sales, profits, return on assets, inventory turnover ratio, working capital turnover ratio, current ratio, price-to-book (PB) ratio, and stock market return. Our results suggest that companies investing in SCM software do not outperform the companies in the S&P 500 in their first year of implementation. Further research is needed to assess the long-term impacts of SCM software investments on company performance.