A Study on Inventory Management and its Impact on Supply Chain Performance in Sri Sabari Textiles

Abstract

Inventory management plays a critical role in ensuring operational efficiency and enhancing supply chain performance, particularly in manufacturing industries such as textiles. This study examines the inventory practices of Sri Sabari Textiles and evaluates their impact on supply chain efficiency, production continuity, and customer satisfaction. Using a descriptive and analytical research design, data were collected from 86 respondents through structured questionnaires and analyzed using percentage analysis. The findings reveal that while the company adopts effective inventory control methods such as FIFO and JIT, challenges like overstocking, understocking, and partial digital adoption persist. The study concludes that improved forecasting, automation, and integrated systems can significantly enhance supply chain performance.

Introduction

The text analyzes inventory management practices at Sri Sabari Textiles and their impact on supply chain performance in a competitive and dynamic market. Effective inventory management is highlighted as essential for controlling costs, ensuring smooth production, and maintaining customer satisfaction, while poor practices lead to stockouts, high costs, and inefficiencies.

The study, based on survey data from employees, shows that FIFO is the most commonly used method, followed by JIT and LIFO, indicating some effort to manage stock efficiently. However, major challenges include overstocking and understocking, mainly due to weak demand forecasting.

These inventory issues significantly affect operations, causing production disruptions, delivery delays, and reduced customer satisfaction. Although some level of digital tools is used, most systems are only partially digitized, limiting real-time visibility and effective decision-making.

Overall, the findings suggest that while the company has a structured system, it suffers from limited automation, poor forecasting, and incomplete digital integration. The study concludes that adopting advanced, technology-driven inventory systems and better coordination across the supply chain is necessary to improve efficiency and performance.

Conclusion

The study concludes that inventory management significantly impacts supply chain performance at Sri Sabari Textiles. Efficient inventory practices improve production flow, reduce operational costs, and enhance customer satisfaction. However, gaps in forecasting accuracy, digital integration, and inventory optimization continue to limit overall supply chain efficiency. Implementing advanced technologies such as ERP systems, adopting AI-driven demand forecasting, and enhancing inter-departmental coordination can substantially strengthen supply chain performance. Future research may extend this study to multiple textile firms for comparative analysis.

References

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Copyright

Copyright © 2026 T Varshan, 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.