The Impact of Supply Flexibility on Supply Chain Performance

Manufacturing operating system has been increasing from time to time. Challenging business competition coupled with the ever-changing business environment are primary factors that companies must be able to improve production efficiency and effectiveness. Supply chain management is one of the business practices in operation management that emphasizes on integrating and coordinating of product and information flows from suppliers to end costumers. The rapidly of changing market-demands have to be faced with a flexible supply chain management to reach market acceptance. The key to successful supply chain management also depends on supply flexibility; given the smooth flow of materials and parts will define the whole manufacture operation. This study aimed to analyze the impact of supply flexibility on supply chain performance. Supply flexibility consists of two variables, namely supplier flexibility and supply network flexibility. The research was conducted by taking samples from the garment industry in Indonesia. The results showed that the supplier flexibility affects the supply chain performance, while supply network flexibility does not affect the supply chain performance