The Impact of Supply Chain Management Practices on Leather Industry

Abstract

The study seeks to determine and measure the extent of supply chain management (SCM) practices on performance of the organization in the manufacturing sector of Pakistan. Small and medium size industries in Pakistan or in other less urban countries are in front of obstacles due to irresponsive practices of SCM and its improper guideline. Most of the time, large organizations are mostly considered for research while SMEs are ignored. The study under consideration is based upon the framework designed for assessing the concussion of supply chain practices on organizational performance of the firm by (Muhammad, Qayyum, Ali, & Shazad, 2013). The intension of the study is towards the development of a model in order to help organizations, professionals and practitioners in defining and achieving their strategies related to SCM and performance. The framework depicts the cause and effect bond between SCM practices and organizational performance. The learning was conducted under the umbrella of positivist paradigm, expecting to approach the most appropriate mechanism in testing the hypothesis of the study. This study has observed that all variable have significant relationship. Data for the study was acquired through structured questionnaire from the owners, management and employees of manufacturing firms specifically from leather industry in the city of Sialkot, Pakistan. The study provided outcome on how and to what extent the SCM practices impacts organizational performance in the manufacturing sector of Pakistan. The research supported the main hypothesis that organizational performance is enhanced by supply chain management (SCM) practices. Furthermore, for the dimensions of SCM practices on performance, two sub hypothesis were supported that customer relations (CR) and quality of information being shared (IQ) does impact performance, while for strategic supplier partnership (SSP) and information sharing (IS) with suppliers, the results were found insignificant.