Application of Supply Chain Management (SCM) Principles in Sri Lankan Garment/Textile Industry

Abstract

The Garment/Textile industry which is the largest manufacturing activity in Sri Lanka, in terms of production, employment and foreign exchange earnings faces huge global competition since the abolition of the Multi Fiber Agreement in 2005. The objectives of this study are to assess the degree to which SCM principles are applied in the garment industry and to examine whether the degree of application varies among the manufacturing firms. Twenty managers were selected as respondents from BOI registered garment factories Colombo and Gampaha districts. Literature discloses that supply chain management practices enhance the productivity in industries with a large number of network partners and enable to survive within the competition. Sri Lankan textile industry deals with networks of suppliers and customers in different countries but little research has been conducted to assess the degree of applying SCM principles in the garment industry. The study addresses this gap. The findings disclose that the degree of application of SCM principles is at a moderate level. Finally national and firm level policy recommendations were made to enhance the SCM practices to achieve high performance levels. Key Words: Supply Chain Management; Supply Chain Orientation Sri Lankan Journal of Humanities and Social Sciences Vol.1(2) Oct 2009