Impact of Supply Chain Digitization on Logistics Efficiency in Nikkans Textile

Abstract

This study examines the impact of supply chain digitalization on logistics efficiency in Nikkans Textile, a leading manufacturer in the Indian textile sector. With globalization and technological advancement, digitalization has become essential to improve transparency, coordination, and operational efficiency. The study employs both quantitative and qualitative methods to explore how digital tools enhance supplier coordination, delivery reliability, inventory management, and cost optimization. Findings reveal that digital communication significantly improves supplier transparency and that order processing speed is the most critical factor contributing to cost reduction. However, challenges such as technical issues, poor IT support, and weak system integration persist. The research concludes that comprehensive digital strategies and strong organizational support are key to achieving sustainable logistics efficiency.

Introduction

Supply Chain Management (SCM) plays a crucial role in the success of manufacturing industries, especially in the textile sector, which faces challenges such as timely delivery, inventory control, and cost optimization. Digitalization using technologies like IoT, AI, cloud computing, and big data helps improve supply chain efficiency by providing real-time visibility and better decision-making. At Nikkans Textile, digital transformation has been adopted to enhance logistics efficiency, reduce manual errors, improve supplier coordination, and increase operational flexibility.

The study aimed to examine the influence of digital supply chain practices on supplier coordination, inventory management, order fulfillment, and cost optimization, as well as identify challenges in digital adoption. A descriptive and analytical research design was used, collecting primary data from 88 employees in logistics, procurement, warehouse, and IT departments through questionnaires and interviews. Statistical tools such as Chi-square and regression analysis were applied using SPSS.

Results showed that digital communication significantly improves transparency in supplier transactions (p = 0.027). Regression analysis indicated that order processing speed has a significant impact on cost reduction, although the overall effect of digitalization on cost savings is relatively small (R² = 0.064). Reliability analysis revealed issues such as technical problems, limited IT support, and difficulties in system integration.

The findings suggest that while digital tools like ERP and SCM software improve transparency, coordination, and decision-making, challenges such as poor infrastructure, high implementation costs, and lack of skilled staff hinder full digital adoption. The study recommends increasing automation, strengthening IT support systems, improving digital integration with suppliers and customers, and providing regular employee training to enhance supply chain performance in the textile industry.

Conclusion

The research concludes that supply chain digitalization significantly contributes to logistics efficiency by improving supplier coordination, transparency, and order processing. While technological and cultural challenges persist, Nikkans Textile can achieve sustainable efficiency through continuous investment in digital tools, staff training, and system integration. A unified digital-first culture is essential to enhance competitiveness and operational performance in the textile sector.

References

[1] Tariq Ali Malik (2024). Sustainable Supply Chain Practices in Pakistan’s Textile Sector. [2] Mukta Sarker (2024). Impact of Supply Chain Integration on Employee Performance. [3] Dubey, R. et al. (2019). Digital Transformation and Supply Chain Integration. 4. Svitlana Smerichevska& Larysa Prodanova (2024). Digitalization in Logistics and Supply Chain. [4] Singh, R. et al. (2025). Barriers to Industry 4.0 Adoption in Indian Textile Industry. [5] Mateo Clement (2025). AI-Driven Predictive Analytics in Textile Manufacturing. [6] Agrawal, T.K., & Pal, R. (2019). Traceability in Textile and Clothing Supply Chains. [7] Aamer, A., & Shah, M. (2022). Digital Transformation in Supply Chain Management.

Copyright

Copyright © 2026 Mr. Yashwanth D, Dr. S Shajitha Banu. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.