Performance improvement in milk product manufacturing using supply chain strategies – an empirical investigation

Purpose - This study has been carried out in dairy product manufacturing industry of Northern India to judge the significance of supply chain strategies viz. cost reduction and optimization strategies toward performance improvement and mediator effect of strength and opportunity between strategies and performance parameters. Design/methodology/approach - Questionnaire survey has been performed to justify their role toward performance improvement. Structural equation modeling, descriptive statistics, hierarchical regression and clusters and partial least square-structural equation modeling has been applied for ascertain the benefits occurred. Findings - Results indicated that strength (success factors of strength identified from literature) is the significant mediator than opportunity (success factors) for enhancing performance of organization. Small incremental improvements and 5S activities are highly important cost reduction strategies for enhancing performance of supply chain strategies. Supply chain strategies significantly improve the quality of milk in the industry under study. The customer has got high-quality product after implementing supply chain strategies. Right-time delivery of product is only possible if failure modes are analyzed thoroughly. Reliability of performance parameters is 88% which signifies that high benefits are achieved by implementing cost reduction and cost optimization strategies of supply chain concept. Processing of milk is significantly improved after taking combined effect of processing and delivery of product. Originality/value - This paper helps both academics and managers to gain a better understanding of this question by considering the role of supply chain strategies implementation practically through a standard procedure.