Scale development for supply chain operational performance model in Indian automobile industry by using exploratory factor analysis

The purpose of this paper is the development of the scale for supply chain operational performance in Indian automobile sector by using exploratory factor analysis. The review highlighted enhanced use of information integration. The study also pointed out that suppliers are not only a source of materials; they could play a vital role in the creation of knowledge due to information integration, and can be a source of innovation. This outputted into strong base for collaborative supply chain. It is important for automobile organisation to understand industry characteristics of subsegments of supplier producing different products. Organisations can see directly some operational benefits by working closely with suppliers, like reduction in various costs, improve quality, and shorten lead‐times by involving supplier in the vendor managed inventory and also in collaborative planning and forecasting. Further, by using exploratory factor analysis developed instrument helps supply chain practitioner to achieve enhanced efficiency levels by studying its significant effect on efficient integration on integral supply chain operation performance.