The relationship between supply chain management and financial performance

The lack of links between supply chain operations and financial performance seems to be related to the perception on the difficulty of translating supply chain operational measures into financial targets. With little academic research in this area, this study represents an attempt to explore and to gain a preliminary insight into the linkage among supply chain management (SCM) and their financial success (FS) of companies listed in Tehran Stock Exchange (TSE), based on data from 110 companies during the years 2004–2013. In this regard, 5 hypotheses are codified. The statistical method used in testing hypotheses is linear regression model and Independent Samples T-test. The results of this study reveal that there is a linkage between companies which practices superior SCM and financial success. This SCM-FS relationship can be used by companies to benchmark its supply chain practices from a financial performance viewpoint with others. We hope that the results of this study will be effective to focus on supply Chain management and the implications of our financial professionals.