Seybold Report ISSN: 1533-9211
Sourabh Kumar*1, Amit Dutt2
1,2 Mittal School of Business, Lovely Professional University, Punjab
*sharma.souravv@gmail.com, amit.dutt@lpu.co.in
Vol 17, No 09 ( 2022 ) | DOI: 10.5281/zenodo.7101849 | Licensing: CC 4.0 | Pg no:1239-1251 | Published on: 21-09-2022
Abstract
Automobile industry is currently experiencing turmoil. Not only in terms of production capacity, but also in terms of the adoption of the most effective supply chain procedures, it expanded quite rapidly after deregulation. The automotive industry is experiencing a severe crisis for the first time in a very long time due to the global downturn and supply & demand mismatch in India. The paper has been accomplished with the motive of understanding the impact of several business financial performance factors on the supply chain factors of the selected companies. The major research questions are: (a) is there a significant impact of financial factors on supply chain performance of the organisation? (b) is there any significant relationship between the supply chain and financial performance of an organisation. To determine the answer to these, the Enterprise value, Net Profit Margins, Current Ratio, Operating Profit, RoCE, Inventory Conversion Period, and RoA, return on Equity and Inventory Turnover Ratios from 2010 to 2020 has been utilised from four major automobile companies of India i.e., M&M, Hero MotoCorp, Maruti Suzuki India Ltd., and Bajaj Auto Ltd. The study revealed that supply chain management has a significant impact on financial performance by boosting productivity, decreasing costs, and raising profits. This was demonstrated using a regression model based on the proposed theory. Additionally, the analysis reveals a positive correlation between the supply chain and the financial performance of some vehicle manufacturers.
Keywords:
Supply chain, financial performance, ROI, ROE, ROCE, ROA, inventory.