The impact of power, benefits, and risk reduction on the performance of supply chain of Sri Lankan apparel and food &amp; beverages industries

Harsha Prabashini Gallage,Dileepa M Endagamage

doi:10.4038/jbs.v3i1.33

The impact of power, benefits, and risk reduction on the performance of supply chain of Sri Lankan apparel and food & beverages industries

Harsha Prabashini Gallage, Dileepa M Endagamage

Open Access

https://doi.org/10.4038/jbs.v3i1.33

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Abstract

Supply chain performance (SCP) can be determined through many factors such as technical factors and relationship factors. The relationship factors mainly focus on the supply chain linkages (SCLs) created with the upstream and downstream supply chain partners. Therefore, the SCLs such as Power, Benefits, and Risk Reduction are important to any industry to enhance their SCP. This paper examines the level of impact of the Power, Benefits, and Risk Reduction on the SCP. The SCLs and the SCP are analyzed and compared using two types of industries as Apparel (AI), and Food & Beverages (F&BI) that established in Free Trade Zones in Western Province Sri Lanka. A total of 138 Managers in the fields of Supply Chain (SC) related activities were surveyed (88-AI, 50- F&BI) through a self-administrative questionnaire. Risk Reduction and Power together demonstrate a significant influence on the SCP in manufacturing sector in Sri Lanka. Further, 'Industry type' moderates the relationships of Power to SCP and Risk Reduction to SCP but not the Benefits to SCP. In F&BI, the Power, Benefits, and Risk Reduction demonstrate significant (5% level) relationships with SCP but, the Power is not showing significant (5% level) relationship with SCP in AI. In F&BI, Risk Reduction and Benefits together demonstrate significant influence on SCP. But in AI, Benefits with the Power demonstrate significant influence on SCP. AI shows higher level of SCP than the F&BI, when the same level of Power and Risk Reduction apply to their own Supply Chain.

Highlights

Increase the effectiveness of an organization is an important point to be addressed
6.1 Conceptual framework According to the figure 6.1, the conceptual framework of the study has developed based on the literature related to Supply chain performance (SCP), supply chain linkages (SCLs) and Supply Chain Management (SCM)
This study focus on the impact of Power, Benefits, and Risk Reduction, on the Supply chain performance of an organization. industry types and the study design is different

Summary

Introduction

Chain Management (SCM) can be identified as one of the main strategies used to improve effectiveness of manufacturing and service organizations. Kwon, and Severance (2007) mentioned SCM as an integrated management tool used to enhance the quality, lower the cost, and satisfy the ultimate customer. SCM helps information, materials, and services to flow effectively, through different facilities to the stakeholders of the organization. To control the inventory by managing the flow of materials will be the primary purpose of the Supply Chain design. Lee et al (2007) analysed the SCLs of supplier, internal integration, and customer with SCP of the organization. (2007) analysed the SCLs of supplier, internal integration, and customer with SCP of the organization. Well-defined SCL is a key determinant to improve the SCP and reliability across a wide range of industries (Lee et al, 2007). The SCL and the SCP can be defined as an interrelated connection

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