Impact of Electronic Supply Chain Practices on Organizational Performance

Abstract

Electronic supply change management nowadays is critical for an organization if the electronic supply chain management system of an organization is effective and efficient then this brings a competitive edge for the firm which helps to increase the market share. This study measures the four dimensions of electronic supply chain management practices, i.e. reward and risk sharing, customer/client relationship, supplier relationship and Information sharing. In this study, organizational performance was also measured with respect to electronic supply chain management practices. This research also has studied how the electronic supply chain management can help the organization to transmit information from organizations to suppliers and from organizations to customers. The information or data for this research was collected from the fast food retailers of Rawalpindi and Islamabad. The result of this research shows that the usage of electronic supply chain management system, which include integrated technology like software and other electronic equipment’s, the advancement and innovation in telecom sector after the launching of 3G and 4G networks the distance between the customer and the organization is shortening now, both the parties can communicate with each other in real time. The company is getting real time data of their customer based on that data the company can make decisions related to the purchasing of raw material from supplier and the decision related to the supply of goods from manufacturing area to the distributor. Electronic Inventory management EIM system manages the finished goods, work in progress and raw material in efficient and effective way. By using this system, the company can decrease the holding cost, shortage cost and reordering cost. When they save the cost by applying electronic supply chain management practices then the organization can earn more profit margin, can compete well in the market, can increase the market share and improve the growth rate of an organization. The finding of this paper is based on 180 respondents, the data collection of 180 respondents from different retail fast food outlets. And the results show a positive relationship of independent variable on dependent variable. i.e. electronic supply chain practices have positively impact on organizational performance