Impact of supplier selection strategies on production efficiency in the textile industry in Sri Lanka

Abstract

The textile industry holds a critical position within the economy of Sri Lanka, making substantial contributions to employment generation, export earnings, and foreign exchange inflows. In order to sustain a competitive advantage in the global market, textile manufacturers in Sri Lanka must strive for efficient production processes. The decision-making process involved in supplier selection, along with the strategies employed, can significantly impact the overall performance of textile companies. This research investigates the impact of supplier selection strategies on production efficiency in the textile industry in Sri Lanka . The study identified four key independent variables central to production efficiency in the textile industry: innovation, use of new technology, supplier relationship, and supplier performance. The results revealed that innovation, supplier relationship, and supplier performance significantly influence production efficiency. This research provides valuable insights for industry practitioners, policymakers, and scholars, offering recommendations to guide strategic selection decisions and contribute to a sustainable and competitive future for the Sri Lankan apparel industry. The study emphasizes the role of innovation, supplier relationships, use of new technology and supplier performance in shaping production efficiency, serving as a foundation for future research and industry development.