Investigating the impact of perfect order fulfilment on quality level and SCM performance

Abstract

The purpose of this paper is to empirically test a conceptual framework based upon three constructs, i.e.: 1) perfect order fulfilment (POF); 2) quality level (QL) performance; 3) supply chain management (SCM) performance. POF is measured in terms of: 1) no. of orders delivered in full; 2) delivery on customer commits date; 3) accurate documentation; 4) perfect condition of the product. QL is measured in terms of: 1) supplier satisfaction index; 2) production performance index; 3) warehousing performance index; 4) customer satisfaction index. SCM performance is measured in terms of: 1) cost; 2) quality; 3) time; 4) productivity; 5) reliability. Various statistical techniques were used to verify, validate and test the reliability of the hypothesis and their sub dimensions. Results of structural modelling revealed that POF dimensions have a direct and significant impact towards enhancing QL (0.50) and SCM performance (0.42). Also, QL performance shows a direct, positive impact on SCM performance (0.47).