EFFECT OF SUPPLY CHAIN MANAGEMENT PRACTICES ON OPERATIONAL EFFICIENCY IN PAKISTAN'S MANUFACTURING SECTOR

Abstract

The present research aims to analyze the relationship between supply chain management (SCM) and operation efficiency in the context of manufacturing industries of Pakistan. Quantitative research was conducted where structured questionnaires were administered on 217 manufacturing firms which are involved in various industries. The following are the issues considered in terms of SCM: Supplier Relationship Management, Information Sharing, Customer Relationship Management, Lean practices, and Technology Integration. The
results showed that all five practices have the significant effect on operational efficiency of the organisation out of which the technology integration and lean practices are having significant and strongly positive relationship with the operational efficiency. The findings of the research showed that there is significant improvement in the operational efficiency of the firms that incorporated most of the SCM practices by 27% as compared to firms that have incorporated lesser communication practices. When it comes to the appreciation
of modern SCM practices, it was apparent that the rate of improvement was higher with the small firms in comparison to the big ones. These insights can be useful to manufacturing organizations that are pursuing better and optimal SC performance in an effort to improve their competitiveness. Another interesting thing was specific differences concerning the effectiveness of SCM practice that was defined and provided guidelines for improvement at a sector level. The identified topics motivated by the literature review include: supply
chain management, operational efficiency, the manufacturing sector, Pakistan, supplier relationships, information sharing, lean practices, and technology integration.

Keywords- Supply Chain Management (SCM), Operational Efficiency, Manufacturing Industries in Pakistan, Technology
Integration, Lean Practices