Improving Supply Chain Performance through the Implementation of Supply Flexibility

Objective – This study aims to analyze the impact of supply flexibility on supply chain performance. The rapidly changing market demands have to be faced with a flexible supply chain management in order to reach market acceptance. The key to successful supply chain management also depends on supply flexibility; given that the smooth flow of materials and parts will define the whole manufacture operation. Methodology/Technique – 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. Findings – As a result of this research, it was found that supplier flexibility affects the supply chain performance, while supply network flexibility does not. Novelty – The study suggests that the Indonesian garment industry needs to strengthen the cooperation network with more suppliers so that the relationship can be more flexible to ensure the availability of high quality raw materials and parts at the appropriate prices to maintain the smooth operation of the company. Type of Paper: Empirical.