EFFICIENCY MODEL FOR THE PROLIFERATION OF SECONDARY MARKET SUPPLY CHAIN – WITH REFERENCE TO THE INDIAN GARMENT CLUSTER

The growth of secondary market in retail garment trade has been a major boost to economic growth in developing nations. This paper highlights the importance of effective forward and reverse supply chain the garment sector as driver for this booming secondary market. A conclusive research technique has been adapted to study the supply chain practices followed in the garment business those in the primary and secondary market. Structural equation modelling is used to validate and test the proposed model for supply chain performance. Cluster sampling method was incorporated. Owners of garment manufacturing firms in and around Coimbatore, Tirupur, Salem, Bargur and Bengaluru region would form the respondent group. A structured questionnaire was given to them to understand their supply chain practices, supply chain flow velocity and flow efficiency and its impact on their business performance. The firms operating under uncertain circumstances in the secondary supply line have adopted practices which lead to appropriate velocity and efficient flow of money, material and information which has been proved through the testing of the model. The velocity and efficiency in the supply line has improved the performance thereby ensuring a more sustainable business for the firm operating in the secondary markets. This study has contributed in understanding the various dimensions of best supply chain practices and its effect on the flow velocity and flow efficiency of the money, material, and information in the secondary market garment supply chain. An assessment of the results of the study has opened a window to the operations of the secondary garment supply chain line in the Indian cloth market which have been more or less camouflaged under the primary market operations. The outcome of the research also shows that these secondary market players have evolved their own strategies to sustain in volatile and uncertain circumstances. These strategies have proved to be very effective in minimizing wastage and increasing profitability of the manufacturing firms. The implications of this study is bound to give much needed support and leverage to the frail and underperforming secondary garment cluster which is a major contributor of Gross Domestic Product and employment ratio.