IMPACTS OF IMPLEMENTING SUPPLY CHAIN PRACTICES ON ORGANIZATONAL PERFORMANCE

Abstract

Abstract The energetic management of supply chain has become strongly a valued way of obtaining better gain and promoting organizational performance meanwhile rivalry is certainly no more among enterprises, but between supply chains. This study abstracts and formulate five extents of SCM practices (strategic supplier partnership SSP, customer relationship CR, level of information sharing LIS, quality of shared information QIS) and examine the connectivity between SCM practices and organizational (market and financial) performance. The data for this study were collected from 300 individuals from different reputed and small manufacturing organizations and the relations intended in the framework were examined using the ell known statistics software; Statistical Package for the Social Sciences (SPSS). The result underlines that elevated stage of SCM practice can lead to superiority, competitiveness and value-added organization is operating performance. In addition, competitive benefits have a direct and optimistic influence on the execution of organizational performance. Purpose of the Study: The reason of this research study is to determine the connection between Supply Chain management practices including Strategic Supplier partnership (SSP), Customer relationship (CR), Level of information sharing (LIS), Quality of information sharing (QIS) and Organizational performance (OP) to find out which aspect has the intense impact on organizational performance (considering financial and market performance). It is essential for the managers and executive teams of manufacturing companies to understand the degree to which organization achieve optimum level of effectiveness, efficiency and productivity with their overall performance in such a challenging industry. Methodology/sample: This causal research is based on quantitative data collected through close end questionnaire sent through internet (Google docs.) to those who are employed mainly in manufacturing firms. The sample size was 350 out of which 301 responses were filled by the respondents completely and were used for more analysis. Cronbach’s Alpha and Multiple Regression were applied through SPSS to examine the data. Practical Implications The conclusion of this study can facilitate decision making personals of manufacturing companies to understand the significance of implementing integration techniques or SCM practices in overall supply chain network which is extremely required for long survival in the industry as well as flourishing organization’s overall performance. Moreover, it would support to understand that corporate performance is without any doubt concerned to implementing SSP, CR, LIS and QIS. The manufacturing firms can be aware of the elements that are most responsible for attaining maximum competitive advantage that affects positively on market and financial performance (organizational performance) and then improve strategies and policies to maintain competitive edge and superiority over others in this extremely tough industry. Problem Background and Aim of the Study With such an increased and stiff competition, it has become very difficult for organizations to run their business affairs smoothly. To maintain high standards and market share; organizations have to work hard and revise their operational strategies and policies frequently. Traditional strategies and policies cannot work for a long period these days due to changing buying/consuming behavior of customers. If an organization is weak in any of its functions, the competitors can easily snatch and capture the market share. Many enterprises fails to compete for a long period because they are unable meet instant customer demands due to lack of awareness of market trends and not getting best things at low cost is also a cause of failure. Organizations have to keep close eyes on its customers and competitors. What competitors are doing is very important to know to give tough time. Particularly, in this empirical study supply chain management and its practices are highlighted through which an organization can achieve competitiveness by focusing and developing good strategies for SCM attributes which includes; manufacturing, purchasing process, material management, warehousing, transportation, demand and supply planning, forecasting, pricing, quality management strategic partnership with suppliers, routine connectivity with customers (customer relationship) and most importantly exchanging quality information with trading partners. This study tells how applications of supply chain management or integrated SCM helps to promote market and financial performance (organizational performance) of any organization. SSP, CR, LIS, QIS and OP are main discussion heads in this study.