Effect of supply chain management practices on supply chain profitability: an empirical investigation using structural equation modelling in Indian retail sector

Abstract

Supply chain management (SCM) is one of the tools used by organisations to improve their business performances. This research aims to investigate the relationships between supply chain management practices and organisations performance using structural equation modelling (SEM) in Indian retail sector. This research conceptualises and develops six supply chain practices viz. strategic supply partnership (SSP), customer relationship practice (CRP), lean retailing practice (LRP), information sharing (IS), information quality (IQ) and postponement practices (PP) and tests the relationship between SCM practises and SC profitability. Data for the study were collected from 162 operations and supply chain heads from leading retail store outlets in India. The results indicate that SCM practices and its impact on SC profitability were investigated and it was found that SCM practice have positive impact on SC profitability. Statistically the relationship between the second orders constructs SCMP and SCP was also found to be significant. Overall, the model has a satisfactory fit.