Analysis Of Company Efficiency With Dea (data Envelopment Analysis)-Focused On Textile Supply Chain

The purpose of this thesis is to analyze efficiency of two logistics companies related to textile supply chain. This thesis uses Data Envelopment Analysis to calculate the efficiency and attempts to find reasons which affect inefficiency and suggests solutions to improve management efficiency for two companies.The thesis first introduces textile supply chain management, especially shows three types of textile supply coordination and case companies. The chosen two companies successfully manage the textile logistics operation in China and are connected to the case companies.The name of first company is CH Logistics which delivers logistics service of China E-land Ltd. connected to type?coordinator of textile supply chain management. The CH logistics was small size before 2003, however the firm started investing net fixed assets to provide textile logistics service after 2003 and rapidly has grown with main customers. The DEA analysis and interview present that CH logistics managed efficiently and maintained excellent strategy from 2006 to 2008. The second company is IDS logistics which is a member of Li & Fung related to type?coordinator of textile supply chain management. IDS logistics actively performs logistics service of global apparel and footwear area in China. The DEA result and annual reports show that IDS logistics was not efficient in 2007 and 2008 because growing strategy made the company increase assets and liability with acquisition in 2007 and the global economic crisis especially influence operating income badly in 2008 IDS logistics needs to adopt an asset-light strategy of minimizing investment in properties and operating on optimal levels of working capital thereby improving returns on investment after 2008.The analysis indicates that how efficiency of each company proceeds during some period. In addition, DEA result presents reasons of inefficiency and may help establish solutions and company's strategy. However, this thesis has limitation to comprehend companies'situation because it is not easy to obtain detailed and abundant data to use DEA and the results just show efficiency of each year without considering strategy for future.This thesis employed interview and annual reports to overcome the limitation. For next research this thesis inquires into more how the company strategy is related to efficiency analysis with DEA.