Enhancing Supply Chain Efficiency through Inventory and Distribution Coordination: A Statistical and Comparative Study

"Enhancing Supply Chain Efficiency through Inventory and Distribution Coordination: A Statistical and Comparative Study"

Dr. Kailash Rai, Assistant Professor, I.P.E. Department, SGSITS, Indore

Sandeep Kashyap, Assistant Professor, Mechanical Engineering Department, BGIEM, Jabalpur

Abstract

In today’s globally connected market, supply chain management plays a vital role due to rising globalization and intense competition. Businesses face constant pressure to use their resources wisely while still meeting the high expectations of customers in terms of service quality and product satisfaction. With consumers becoming more aware of both prices and service levels, companies must carefully balance cost efficiency with delivering excellent service. To stay profitable, supply chains need to optimize costs without lowering the quality of service. One of the biggest challenges in achieving this is the lack of coordination between key areas, especially inventory management and distribution. These two functions have often been managed separately, causing delays, waste, and higher costs. However, today’s successful supply chains focus on integrating these functions to work more efficiently together. This study explores how better coordination between inventory and distribution affects supply chain performance. A descriptive survey was conducted among leading companies, revealing that four main performance measures improved significantly with strong coordination between these functions. A statistical comparison using t-tests also showed that companies that align inventory and distribution efforts perform much better than those that don’t. These results highlight the clear advantages of an integrated approach, showing that better coordination not only reduces costs but also boosts overall supply chain effectiveness. In a competitive business world, this kind of smart integration is essential for companies aiming to stay ahead.