A Study of Effectiveness Analysis of Supply Chain Management in Manufacturing Companies in India

Management

Supply Chain Management (SCM) is a key strategic approach for increasing organisational effectiveness and the realisation of organizational goals. Effectively selecting and evaluating suppliers and managing their involvement in the supply chain are some of the capabilities that enable Original Equipment Manufacturers (OEMs) to achieve customer satisfaction. At the same time, the suppliers have a significant and direct impact on the performance of buyers. A sustained supplier-manufacturer relationship cannot be possible without tangible benefits accrued to both the partners. The present study, by viewing the supply chain from the perspective of the OEMs and the suppliers, identifies the critical dimensions of SCM and the measures of performance. Reliable and validated instruments are developed. Conceptual models are proposed. The effect of the moderator, such as ‘selection’, ‘long-term relationships’, etc. (OEM’s perspective) and ‘supply chain orientation’ (supplier’s perspective) on the relationship between the critical dimensions of SCM and the performance measures, are investigated. The investigations reveal that from the perspectives of the OEM and supplier, the moderator has a significant and positive effect on the relationship between the critical dimensions of SCM and the performance measures. Some issues such as inventory management, IT-enablement of supply chains, and buyer supplier relationships are at the core of supply chain research. Some other issues such as postponement, top management commitment, and disparities in trading partners' capability influence these core issues. Some hypotheses have been proposed to assess such influences. Through a questionnaire-based survey for Indian manufacturing companies, these hypotheses have been tested. It is observed from this research that information sharing and top management commitment have important roles towards the effectiveness of a supply chain. The findings also establish relationships among many important issues of supply chain management.

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