A Study on Supply Chain Management among Medium and Large Scale Retailers in Coimbatore City

Abstract

Supply Chain Management (SCM) plays a crucial role in improving operational efficiency and competitiveness in the retail sector. With increasing market competition and evolving consumer expectations, both medium and large-scale retailers must adopt effective supply chain strategies to ensure product availability, cost efficiency, and customer satisfaction. This study aims to analyze and compare supply chain management practices among medium and large-scale retailers in Coimbatore city. The research highlights differences in procurement systems, inventory management, technology adoption, supplier relationship management, and risk mitigation practices. The findings reveal that large-scale retailers adopt centralized and technology-driven SCM systems, while medium-scale retailers rely more on semi-automated or traditional practices. The study provides practical insights for strengthening supply chain performance and improving retail competitiveness.

Introduction

Retailing has evolved significantly from traditional formats to organized, technology-driven systems, both globally and in India. Developed markets introduced standardized store layouts, advanced logistics, barcoding, computerized inventory systems, and automated supply chains, improving efficiency and customer satisfaction. In India, organized retail has grown rapidly alongside traditional retail formats.

This study examines Supply Chain Management (SCM) practices among medium and large-scale retailers in Coimbatore, a major commercial hub in Tamil Nadu. The objectives include analyzing SCM practices, comparing retailer categories, evaluating inventory and supplier management, identifying challenges, and suggesting improvements. The research adopted a descriptive design using primary data (questionnaires) and secondary sources, with percentage and comparative analysis for evaluation.

Findings indicate strong SCM adoption, with 65.3% of retailers reporting high or very high implementation levels. About 69.7% consider SCM effective, and 59.3% believe their practices are better than competitors. Large-scale retailers typically follow centralized supply chain structures for cost reduction and coordination. However, automation remains limited—only 25.3% use fully automated inventory systems, while 40.7% rely on semi-automated systems.

The study concludes that SCM plays a crucial role in retail efficiency and competitiveness. It recommends adopting fully automated inventory systems, using data-driven forecasting, integrating supply chain functions, strengthening supplier relationships, optimizing transportation, monitoring KPIs, and embracing emerging technologies to enhance overall performance and sustain growth in the competitive retail environment.

Conclusion

The study on Supply Chain Management among medium and large-scale retailers in Coimbatore shows that SCM significantly improves retail performance and operational efficiency. Most retailers have adopted SCM at moderate to high levels, with large-scale retailers demonstrating better integration, higher technology adoption, and more structured systems than medium-scale retailers. However, many retailers still rely on manual and semi-automated systems, indicating scope for further digital transformation.

References

[1] Government of India. (2022). Retail sector and trade reports. Ministry of Commerce and Industry. [2] Retailers Association of India (RAI). (2023). Indian retail industry reports. [3] Mentzer, J. T., DeWitt, W., Keebler, J. S., et al. (2001). Defining supply chain management. Journal of Business Logistics, 22(2), 1–25. [4] Gunasekaran, A., Patel, C., & Tirtiroglu, E. (2001). Performance measures and metrics in a supply chain environment. International Journal of Operations & Production Management, 21(1/2), 71–87.

Copyright

Copyright © 2026 Ms. Caroline Lakshaya R, Dr. B. Devipriya. 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.