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