Impact of Critical Supply Chain Factors on Productivity Performance: Evidence from Garments Industry of Pakistan

Abstract

Supply chain management holds a vital and crucial role in the garments industry, garnering considerable attention from both industry professionals and researchers, especially in relation to the challenges faced in the 'Last Mile' of e-commerce. This study aimed to explore the influence of critical supply chain factors on productivity performance in the Pakistani garments industry. The specific research objectives were to identify the key supply chain practices implemented by focused garments manufacturers, assess the impact of these practices on productivity performance, and examine the challenges encountered by companies in implementing effective supply chain practices. The research was guided by the Theory of Constraints, employing a descriptive research design to address the research questions and collect relevant data. The participants of the study were garments industry manufacturers in Pakistan, and a random sampling technique was utilized, resulting in a sample size of 152 as determined by Morgan's table. A modified questionnaire with closed-ended questions was administered online for data collection, and the gathered information was entered into a spreadsheet and analyzed using SPSS. The findings of the study have implications for researchers, supply chain practitioners, and various stakeholders. Due to constraints, such as limited access to certain employees and the unavailability of in-person meetings, an online questionnaire was used. The independent variables in the study were supply chain practices, including Information Sharing, Inventory Management, Logistics Management, and Capacity Planning, while the dependent variable was Productivity Performance. The study confirmed a positive and significant impact of the independent variables on the dependent variable.