Affecting Factors of Supply Risk Management on Supply Chain in Textile Sector of Pakistan

Abstract

The Pakistan textile industry contributed more than 5o percent to the country’s export and out total annual exports of $ 23 Billion, textile contributed $ 11 Billion. However the core issues of Pakistan like war on terror, Economic problems and political instability still very much proves to be a hurdle in the progressive path of all industries of Pakistan. The textile industry currently comes across enormous challenges like financial risks (Cavinato 2oo4), Disruption risks (Tang 2oo6a), Exogenous risks (Trkman and McCormack 2oo9), Continuous risks (Trkman and McCormack 2oo9), External risks (olson and Wu 2o1o), Miss-the-target MtT (Ravindran et al. 2o1o) and Value-at-risk VaR (Ravindran et al. 2o1o). However, Pakistan’s economic conditions have also improved over the time and better rules and regulations now prevail. As textile industry is one of the leading industries that majorly contribute to Pakistan economy. It is important to asses and evaluate the underlined causes of failure of an industry which holds extreme potential in terms of employment, rise in exports and great contributor of not just Pakistan ‘s economy but many countries like China, Bangladesh and India as well. As there is shortage of studies in this area of study, this study aims to fill that gap by utilizing already available data and studies regarding the area of concern. Therefore, the aim of this research is to analyze affecting factors of supply risk management on Supply Chain in textile sector of Pakistan. In order to analyze this, questionnaire strategy has been used. 157 managers of textile sector of Rawalpindi and Islamabad have been contacted. These managers have been asked about the extent of impact of their company’s supply chain vulnerability to different risks on business activities. The response of the participants have shown that overall, there is low extent of influence of supply chain vulnerability to these risks on business operations. Moreover, the analysis has also revealed that most of the companies follow effective supply chain risk management plans in order to manage and mitigate the risks. This research has theoretical and practical implications for the textile sector of Pakistan. This study holds more significance as risk is identified as the part of everyday life of entities of supply chain management. The organizations should interpret that how risk management links with resiliency and its role in effective supply chain management. The supply chain of a company should be prepared to fulfill the needs of customers without making any sacrifices in terms of organizational reputation or shareholders’ value