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IJSTR >> Volume 7 - Issue 8, August 2018 Edition



International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616



Managing The Agility Of Supermarkets Supply Chain Using Inventory Management And ICT Systems Approach

[Full Text]

 

AUTHOR(S)

Surahman Surahman, Suramli, Gunadi

 

KEYWORDS

supply chain agility, supermarkets, inventory management, ICT

 

ABSTRACT

The purpose a significant amount of operation issues do exist in local supermarkets and their supply chains confirming the need for their operational agility. The agility of supermarket chain mostly was associated to the capability of operation that responds to the increasing pressure of variability in customer demand and changing customer buying behavior. The paper therefore examines the agility of supermarkets supply chains to manage the inventory issues in meeting the customer order fulfillment. Cross-sectional study included survey data from managers of supermarkets which is spread over the big cities in East Indonesia. This also included the manufacturers and small retailers as partners of the supermarkets chain. A total of 164 usable responses, representing 40 per cent responses rate, comprise of 60 supermarkets and 104 manufacturers and retailer together. SEM modeling was used to find out the hypothesized relationship among the variables in a conceptual framework. Results of the study show that information and communication technology (ICT) plays an important role in managing supermarket inventory through its supply chains agility (SCA). The results also show that the supermarkets suffer from quick response to their consumer need, inventory stock out, higher distribution lead-time and lack of order fulfillment. The finding can offer an insight to the operation managers about the ICT usage that can provide an agility to overcome their inventory issues there by maximizing service level. The supermarkets need to be quick in response to meeting their customers’ requirement. Unfortunately, some supermarkets have too many issues in serving the customers. Limited use of ICT with the suppliers and retail customers results in inventory shortages, higher distribution lead time and low service level. The paper aims to fill this gap by investigating how managerial practices may increase the agility in the supply chains especially in managing the inventory using ICT as enabler.

 

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