Performance evaluation of supply chain network in apparel industry: a case study

Abstract

Supply chain management has become one of the most discussed topics in business literature and is by many organizations considered a key strategic element. Today, markets have become more dynamic with rapid changes in customer requirements. These rapid changes have increased the importance for companies to ensure that materials and information flow smoothly between the actors in a supply chain.

Being able to measure supply chain performance is important since it leads to a greater understanding of the supply chain and provides important feedback on the improvement progress. In spite of companies’ and managers’ recognition of the importance of supply chain management, they often lack the ability to develop effective performance measures and metrics. In addition, relatively little literature covering PMSs and the selection of performance measures in the context of supply chain management exists.

Here evaluated performance of supply chain in East west Industrial Park Ltd. A performance measure, or a set of performance measures, is used to determine the efficiency and/ or effectiveness of an existing system, or to compare competing alternative systems. Performance measures are also used to design proposed systems, by determining the values of the decision variables that yield the most desirable levels of performance. Due to complexity of supply chain nature, it is very difficult to measure its performance. In this study Supply Chain Operation Reference (SCOR) model has been used to measure supply chain performance. Four Key Performance Indicators (KPI) have been measured following the measurement of overall KPI which indicates the ultimate supply chain efficiency. The four KPI values are; Quantity and Timely Delivery 55.00%, Adherence to Production Target 69.30%, Quality Capability 14.18% and On-Time Shipment 82.83%. Overall efficiency of the supply chain is only 64.24% which is not well enough. Only On-Time-Shipment has higher KPI value. Other individual KPI values can be enriched by improving backward linkage, labor, management and production line efficiency and also improving the quality level. However, PPC and TQM will play a vital role to improve overall KPI.