Supply Chain Management Practices and Supply Chain Performance in the Manufacturing Industries of Bangladesh

An Empirical Study

Abstract

Purpose: The paper aims to examine the association between supply chain management practices (SCMP) and supply chain performance (SCP) in the manufacturing industries of Bangladesh. SCMP was classified as strategic supplier partnership (SSP), customer relationship (CR), information sharing level (IS), information quality level (IQ), and postponement (POS).

Methods: It is a quantitative research based on a survey questionnaire. Supply chain management practices were measured by items adapted from Li, Nathan, and Rao (2006), while supply chain performance was measured by using key supply chain performance indicators suggested by Ambe (2013). Using convenience sampling technique, data were collected from 203 executives involved in supply chain activities working in different manufacturing organizations in two major cities of Bangladesh (Dhaka and Chittagong). Descriptive statistics, bivariate correlation, and regression analysis were used to analyze the data.

Results: Results demonstrated a positive correlation between supply chain management practices and supply chain performance (r=0.67**). However, strategic supplier partnership, customer relationship, and postponement are more strongly related to improving supply chain performance than information sharing level and information quality level.

Implications: A significant implication of the study is that manufacturing organizations should develop supply chain management capabilities to improve supply chain performance and they should begin with developing their level of information sharing and level of information quality.

Limitations: The use of the convenience sampling technique limits the generalizability of the findings. The small sample size (n=203) also warrant caution in interpreting the results.