Operational efficiency to financial efficiency - a case study on 'apparel sector' in Sri Lanka

Abstract

This is an era of economic instability and high inflation in Sri Lanka. Apparel sector is the largest gross export which contributes as the largest net foreign exchange earner from 1992 in Sri Lanka (Dheerasinghe, 2009). In 2002, the apparel industry in Sri Lanka contributed almost 6% of the GDP with a primary foreign exchange value of 40% from exports and 52% from industrial products exports (Embuldeniya, 2015). As a leading apparel brand in Sri Lanka, the ABC Company continuously faces a decreasing movement in operational efficiency. This research examines the factors affecting towards the operational efficiency of the ABC Company to avoid operational inefficiency. Therefore, as a major finding of the study, it has identified the inventory management as the most largely affecting factor towards operational efficiency and the second highest influencing factor as the labour productivity. The least influencing factor is the information system management.