Impact of Supply Chain Management Practices on Achieving Cost Effectiveness in Textile Industry of Pakistan

Abstract

This study investigates the relationship between supply chain management practices and cost effectiveness in textile sector of Pakistan. This study has considered warehousing, inventory management, procurement and logistics as independent variables and cost effectiveness as dependent variable. However, textile sector of Pakistan was the sector chosen to investigate the relationship between variables mentioned above. Quantitative research method was used as primary data was collected through adoptive structured questionnaire based on 5 Likert scale. The responses were recorded from 250 respondents (Supply Chain Manager, Assistant, Procurement/Logistic Officer, Support Staff associated with textile sector of Pakistan) through convenience sampling technique. Responses recorded were analyzed through statistical tests such as correlation and regression analysis by using SPSS Software. The results indicate that supply chain management practices (warehousing, inventory management, procurement and logistics) positively impact cost effectiveness in textile sector of Pakistan. Conclusively, this study proves that change in supply chain management practices brings a definite change in cost effectiveness in textile sector of Pakistan.