How the performance measurement of supply chain contributes in achieving organisational objectives of Sri Lankan apparel organisations

Abstract

Half way through the evolution of supply chain management, the measurement of performance became an important component to the successful implementation of its concepts and practices. The intense competition in the apparel manufacturing industry has encouraged the players to focus not only on the profitability of their businesses but also on the elements such as supplier -customer relationship management and optimization of every single echelon along the supply chain. This research presents a detailed study and an analysis carried out to determine the impact of the performance measurement systems established in apparel companies on their organizational objectives in Sri Lankan context. The apparel manufacturing companies involve in export trade that are registered under Export Development Board were considered as the population and the apparel exporting organisations which are registered under Sri Lanka Apparel Exporters’ Association were considered as the sample for this research. All the data is gathered via an online questionnaire and focus respondents are the senior level managers in these apparel manufacturing organizations. In the data analysis phase, the Cronbach’s alpha, the principal component analysis and regression analysis became extensively useful. The analysis and the conclusions are solely based on the data collected from the apparel organizations in the export industry and not having even a single representation from non-exporting small scale apparel organisations is seen as a main limitation of this study. This research brought into light that measurement of organisational performance has favourable as well as antagonistic impact on organisational performances, therefore organisations should identify the tradeoffs and set division targets accordingly.