Business environment-supply chain framework and benchmarking supply chain structures

Abstract

PurposeThe purpose of this paper is to develop a supply chain management framework covering different business environment levels, that is, macro, micro and supply chain levels, and also to evaluate Haiti vs China as apparel-sourcing partners by assessing macro-level, supply-chain-level and micro-level environments from the US apparel buyers’ perspective.Design/methodology/approachIn order to achieve this, first, a framework covering these business environment levels was developed and tested through path analysis. Prior to path analysis exploratory factor analysis was conducted to verify proposed factor structures. Data were collected using face-to-face interviews with a sample of 41 apparel companies that operate in the USA and source from China and Haiti.FindingsThis study found that both supply-chain-level and micro-level environments positively impact global supply chain performance. Supply-chain-level also has a direct effect on micro-level environment and macro-level environment has only a direct effect on supply-chain-level environment. Interviews and discussions based on this framework indicate that Haiti’s proximity to the USA, price, low-wage rates, small-order sourcing opportunities and good basic sewing skills are among Haiti’s strengths.Originality/valueThis study is unique in developing a multi-level environment framework for supply chain management and in comparing Haiti and China in terms of their supply chains to evaluate the potential competitiveness of Haitian apparel supply chain.