Role of Technology in Improving Supply Chain Efficiency in the Coimbatore Textile Sector

Abstract

The textile industry is one of India’s most prominent industrial sectors, contributing significantly to exports, employment, and national GDP. Coimbatore, a leading textile hub, comprises spinning mills, weaving units, dyeing houses, and garment manufacturers that play a vital role in the regional economy. Traditionally, supply chain operations in these firms were managed manually, resulting in delays, inventory mismatches, limited coordination, and increased operational costs. With the emergence of advanced technologies such as Enterprise Resource Planning (ERP), Internet of Things (IoT), Artificial Intelligence (AI), automation, blockchain, and data analytics, textile firms are increasingly modernizing their supply chain processes to enhance real-time visibility, operational efficiency, and decision-making speed. However, technology adoption remains uneven, particularly among Micro, Small, and Medium Enterprises (MSMEs), due to financial and technical constraints. This study investigates the extent of technology adoption and examines its impact on key supply chain performance indicators, including cost efficiency, lead time, inventory management, and customer satisfaction in the textile industry of Coimbatore. The findings aim to provide insights for industry stakeholders and policymakers to strengthen technology-driven supply chain practices.

Introduction

The textile industry in India, particularly in Coimbatore, is a major contributor to employment, exports, and GDP. Traditionally, supply chain operations—spinning, weaving, dyeing, garment manufacturing—were manual, leading to delays, inventory mismatches, and cost inefficiencies. With digital transformation, technologies like ERP, IoT, AI, blockchain, automation, and data analytics are being adopted to improve real-time visibility, decision-making, and efficiency. However, technology adoption is uneven, especially among MSMEs. This study investigates the level of technology adoption and its impact on supply chain performance in Coimbatore.

Objectives

1. Examine the extent of technology adoption in textile supply chains (ERP, IoT, AI, blockchain, automation).

2. Assess the impact of technology on key performance indicators: cost efficiency, lead time, inventory management, and customer satisfaction.

Literature Review

• Christopher Lee (2004): IT integration enhances supply chain visibility and reduces uncertainty.

• Gunasekaran & Ngai (2004): ERP and IT systems improve purchasing, production planning, and logistics efficiency; ERP adoption is critical for supplier-manufacturer integration.

Research Methodology

• Design: Descriptive research

• Population: Textile mills, garment units, dyeing/processing houses, and logistics firms in Coimbatore

• Sample: 154 respondents selected via purposive sampling

• Data: Primary (structured questionnaire) and secondary (journals, reports, websites)

• Analysis: Percentage and ranking analysis

Results and Discussion

1. Technology Adoption Levels

• Majority of firms (50.6%) use advanced technologies, indicating strong digital penetration.

2. Supply Chain Performance Impact

• Cost efficiency benefits most from technology adoption.

3. Operational Areas Impacted

• Customer satisfaction shows comparatively lower improvement.

Key Findings:

• 50.6% of firms use advanced technologies

• 63% agree technology improves customer satisfaction

• 59.1% consider technology essential for future growth

• Production efficiency and cost reduction are the most impacted areas

• Fully digital quality control remains limited (16.9%)

Suggestions

1. Employee Training: Enhance awareness and skills for effective technology use.

2. Gradual Transition: Traditional firms should adopt agile or hybrid systems to improve flexibility.

3. Phased Investment: MSMEs can implement digital tools gradually to manage costs and risks.

4. Customer Satisfaction & Delivery: Greater use of digital tools and advanced technologies to enhance service.

5. Digital Quality Control: Expand use of IoT, AI, and blockchain for fully digital quality management.

6. Continuous Evaluation: Regularly assess and upgrade technology for sustained efficiency.

7. Collaboration: Integrated digital platforms among supply chain partners to improve transparency and coordination.

8. Government Support: Subsidies, training, and infrastructure to boost MSME adoption.

9. Data-Driven Decisions: Leverage analytics for demand forecasting and inventory optimization.

10. Cybersecurity: Strengthen measures to protect digital supply chains.

Conclusion

This study confirms that technology plays a crucial role in improving supply chain efficiency in the Coimbatore textile sector. Digital tools significantly enhance cost efficiency, production performance, inventory management, and order accuracy. Although traditional practices still exist, firms are increasingly adopting advanced technologies to remain competitive. Continuous technological investment and strategic digital transformation are necessary for sustainable growth and global competitiveness.

References

[1] Ministry of Textiles, Government of India. (2023). Annual Report 2022–23. https://texmin.gov.in [2] Ministry of MSME, Government of India. (2023). MSME Annual Report. https://msme.gov.in [3] Confederation of Indian Textile Industry (CITI). (2023). Indian Textile Industry Report. https://www.citiindia.com [4] World Economic Forum. (2022). Digital Transformation of Supply Chains. https://www.weforum.org [5] McKinsey & Company. (2023). Digital Supply Chains in Manufacturing. https://www.mckinsey.com

Copyright

Copyright © 2026 Ms. Harini R B , Dr. R. Sivaramakrishnan. 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.