The Impact of Supply Chain Management Practices in Total Quality Management Practices and Flexible System Practices Context: An Empirical Study in Oil and Gas Industry

Abstract

A supply chain management (SCM) is an ongoing process and needs continuous efforts to get the desired results. SCM practices has become a potentially valuable way of securing total quality management (TQM) practices and flexible system (FS) practices since competition is no longer between organizations, but among supply chains. Poor SCM erodes profitability, delays projects, and limits production. This research conceptualizes and develops two dimensions of SCM practices (strategic relationship and customer’s relationship) and tests the relationship of SCM practice in terms of SCM program, TQM practices, and FS practices. Structured questionnaire has been developed on the basis of extensive literature survey. Data for the study were collected from major players of oil and gas industries and the relationships proposed in the framework were tested using SPSS-16 software. The hypotheses testing for selected variables have been done by using stepwise regression analysis. Further correlation was done among the selected variables, reveals that SCM practices is positively correlated with TQM Practices and FS Practices. TQM practice and FS practices are vital and play crucial role in SCM practice. The validated model so developed shows the relationship among the selected variables. SCM program has been observed to be directly linked with FS practices and not by any other variable. This observation has emerged from the statistical analysis of the data collected from questionnaire based survey. India today remains one of the least explored regions with well density per thousand sq. kms. Being among the lowest, it is also evident that vast amount of capital investments are necessary if exploration efforts are to be substantially augmented. Therefore, there is need of FS practices and SCM practices to attract both the national oil companies, as well as, private sector oil companies to invest in this critical area.