Improving Lead Times from Distribution Centre to Retail Stores: A Case Study of the Retail Industry
Abstract
This study aims to explore the main factors contributing to long lead time from the distribution centre to retail stores and propose the best practices contributing to lead time reduction from retailers’ perspectives. A multiple case study research methodology was adopted. The case study involved two firms in the retail industry in Malaysia. Data were collected through semi-structured interviews and analysed using thematic analysis. The results identified six main factors that contribute to long lead time which include a lack of DC readiness, manual processes, SC uncertainty, lack of system integration, lack of performance measurement, and manpower issues. These could be enhanced by adopting agile practices, having better integration and communication, and implementing automation in distribution centre process. This research contributes to supply chain management theory by examining the best practices for lead time reduction in the retail industry, specifically from distribution centres to retail stores. Future research should explore the best practices from different retail industries such as food, and electronics. This study provides retailers with a comprehensive understanding on how to overcome the factors that contribute to long lead time from the distribution centre to retail stores by discussing the best practices and their potential value of implementing such practices. Previous studies mainly focus on reducing lead time in the manufacturing industry. This study further explores and provides empirical insights into lead time reduction in retail industry by focusing on the best practices that can help improve lead time from the retailers’ lens.
References
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Miles, M. B., & Huberman, A. M. (1994). Qualitative Data Analysis. SAGE.
Schmenner, R. W. (2015). The pursuit of productivity. Production and Operations Management, 24(2), 341–350. https://doi.org/10.1111/poms.12230
Simangunsong, E., Hendry, L. C., & Stevenson, M. (2012). Supply Chain Uncertainty: A Review and Theoretical Foundation for Future Research. International Journal of Production Research, 50(16), 4493–4523. http://mc.manuscriptcentral.com/tprs
Slack, N., & Brandon-Jones, A. (2019). Operations Management. In Pearson Education Limited (Ninth Edition). Pearson Education Limited.
Van Der Vorst, J. G. A. J., & Beulens, A. J. M. (2002). Identifying sources of uncertainty to generate supply chain redesign strategies. International Journal of Physical Distribution & Logistics Management, 32(6), 409–430. https://doi.org/10.1108/09600030210437951
Van Der Vorst, J. G. A. J., Beulens, A. J. M., De Wit, W., & Van Beek, P. (1997). Supply Chain Management in Food Chains: Improving Performance by Reducing Uncertainty. Information Systems in Logistics and Transportation.
Wong, C. Y., Boon-Itt, S., & Wong, C. W. Y. (2011). The contingency effects of environmental uncertainty on the relationship between supply chain integration and operational performance. Journal of Operations Management, 29(6), 604–615. https://doi.org/10.1016/j.jom.2011.01.003
Yin, R. K. (2018). Case Study Research and Applications (Sixth Edit). SAGE Publications Ltd.
Baker, P., & Halim, Z. (2007). An exploration of warehouse automation implementations: cost, service and flexibility issues. Supply Chain Management: An International Journal, 12(2), 129–138.
Bechtsis, D., Tsolakis, N., Vlachos, D., & Iakovou, E. (2017). Sustainable supply chain management in the digitalisation era: The impact of Automated Guided Vehicles. Journal of Cleaner Production, 142, 3970–3984. https://doi.org/10.1016/ j.jclepro.2016.10.057
Chen, J. C., Cheng, C.-H., Huang, P. B., Wang, K.-J., Huang, C.-J., & Ting, T.-C. (2013). Warehouse management with lean and RFID application: A case study. International Journal of Advanced Manufacturing Technology, 69(1–4), 531–542. https://doi.org/10.1007/s00170-013-5016-8
Christopher, M., & Peck, H. (2004). Building the Resilient Supply Chain. The International Journal of Logistics Management, 15(2), 1–14. https://doi.org/10.1108/0957409 0410700275/FULL/PDF
Cichosz, M., Wallenburg, C. M., & Knemeyer, A. M. (2020). Digital transformation at logistics service providers: barriers, success factors and leading practices. International Journal of Logistics Management, 31(2), 209–238. https://doi.org/10.1108/IJLM-08-2019-0229
Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. (2021). Supply Chain Management: A Logistics Perspective (10th ed.). Cengage Learning.
Creswell, J. W. (2009). Research Design - Qualitative, Quantitative, and Mixed Methods Approaches (Third edit). SAGE Publications Ltd.
Danese, P., & Bortolotti, T. (2014). Supply chain integration patterns and operational performance: A plant-level survey-based analysis. International Journal of Production Research, 52(23), 7062–7083. https://doi.org/10.1080/00207543. 2014.935515
De Treville, S., Shapiro, R. D., & Hameri, A. P. (2004). From supply chain to demand chain: The role of lead time reduction in improving demand chain performance. Journal of Operations Management, 21(6), 613–627. https://doi.org/10.1016/j.jom.2003.10.001
Dekhne, A., Hastings, G., Murnane, J., & Neuhaus, F. (2019). Automation in logistics: Big opportunity, bigger uncertainty.
Easterby-Smith, M., Thorpe, R., & Lowe, A. (2002). Management Research: An Introduction. In R. Thorpe & M. E asterby-Smith (Eds.), Annals of Physics (2nd ed., Vol. 54). SAGE Publications.
Elizabeth Reima Kutty Krishnan, & Wahab, S. N. (2019). A Qualitative Case Study on the Adoption of Smart Warehouse Approaches in Malaysia. International Conference on Building Energy Conservation, Thermal Safety and Environmental Pollution Control (ICBTE 2019). https://doi.org/10.1051/e3sconf/2019136010
Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28(1), 58–71. https://doi.org/10.1016/j.jom.2009.06.001
Flynn, B. B., Koufteros, X., & Lu, G. (2016). On theory in supply chain uncertainty and its implications for supply chain integration.
Frohlich, M. T., & Westbrook, R. (2001). Arcs of integration: an international study of supply chain strategies. Journal of Operations Management, 19, 185–200. www.supply-chain.org.
Glock, C. H. (2012). Lead time reduction strategies in a single-vendor-single-buyer integrated inventory model with lot size-dependent lead times and stochastic demand. International Journal of Production Economics, 136(1), 37–44. https://doi.org/10.1016/j.ijpe.2011.09.007
Hill, A. V., & Khosla, I. S. (1992). Models for optimal lead time reduction*. Production and Operations Management, 1(2), 185–197.
Hsu, S.-L., & Lee, C. C. (2009). Replenishment and lead time decisions in manufacturer-retailer chains. Transportation Research Part E: Logistics and Transportation Review, 45(3), 398–408. https://doi.org/10.1016/j.tre.2008.10.005
Jessica Bruna Perussi, Fernando Gressler, & Robson Seleme. (2019). Supply Chain 4.0: Autonomous Vehicles and Equipment to Meet Demand. International Journal Supply Chain Management, 8(4), 33–41. http://excelingtech.co.uk/
Kembro, J., & Norrman, A. (2019). Exploring trends, implications and challenges for logistics information systems in omni-channels: Swedish retailers’ perception. International Journal of Retail and Distribution Management, 47(4), 384–411. https://doi.org/10.1108/IJRDM-07-2017-0141
Kembro, J., & Norrman, J. (2022). The transformation from manual to smart warehousing: an exploratory study with Swedish retailers. International Journal of Logistics Management, 33(5), 107–135. https://doi.org/10.1108/IJLM-11-2021-0525
Kraiselburd, S., Pibernik, R., & Raman, A. (2010). The Manufacturer’s Incentive to Reduce Lead Times. Production and Operations Management, 20(5), 639–653. https://doi.org/10.3401/poms.1080.01192
Leng, M., & Parlar, M. (2009). Lead-time reduction in a two-level supply chain: Non-cooperative equilibria vs. coordination with a profit-sharing contract. International Journal of Production Economics, 118(2), 521–544. https://doi.org/10.1016/j.ijpe. 2009.01.002
Meckenstock, J.-N., Schlauderer, S., & Overhage, S. (2022). Association for Information Systems Association for Information Systems AIS Electronic Library (AISeL) AIS Electronic Library (AISeL) How Do Individual Social Agile Practices Influence the How Do Individual Social Agile Practices Influence the Development Success? An Exploratory Study Development Success? An Exploratory Study. AIS Electronic Library (AISeL).https://aisel.aisnet.org/wi2022/it_strategy/it_strategy/7
Miles, M. B., & Huberman, A. M. (1994). Qualitative Data Analysis. SAGE.
Schmenner, R. W. (2015). The pursuit of productivity. Production and Operations Management, 24(2), 341–350. https://doi.org/10.1111/poms.12230
Simangunsong, E., Hendry, L. C., & Stevenson, M. (2012). Supply Chain Uncertainty: A Review and Theoretical Foundation for Future Research. International Journal of Production Research, 50(16), 4493–4523. http://mc.manuscriptcentral.com/tprs
Slack, N., & Brandon-Jones, A. (2019). Operations Management. In Pearson Education Limited (Ninth Edition). Pearson Education Limited.
Van Der Vorst, J. G. A. J., & Beulens, A. J. M. (2002). Identifying sources of uncertainty to generate supply chain redesign strategies. International Journal of Physical Distribution & Logistics Management, 32(6), 409–430. https://doi.org/10.1108/09600030210437951
Van Der Vorst, J. G. A. J., Beulens, A. J. M., De Wit, W., & Van Beek, P. (1997). Supply Chain Management in Food Chains: Improving Performance by Reducing Uncertainty. Information Systems in Logistics and Transportation.
Wong, C. Y., Boon-Itt, S., & Wong, C. W. Y. (2011). The contingency effects of environmental uncertainty on the relationship between supply chain integration and operational performance. Journal of Operations Management, 29(6), 604–615. https://doi.org/10.1016/j.jom.2011.01.003
Yin, R. K. (2018). Case Study Research and Applications (Sixth Edit). SAGE Publications Ltd.
Published
2024-12-01
How to Cite
SUHAIMI, A., Zakiah Syamra’; SUPPATVECH, B., Chutikarn.
Improving Lead Times from Distribution Centre to Retail Stores: A Case Study of the Retail Industry.
International Journal of Business and Technology Management, [S.l.], v. 6, n. 4, p. 149-161, dec. 2024.
ISSN 2682-7646.
Available at: <https://myjms.mohe.gov.my/index.php/ijbtm/article/view/28473>. Date accessed: 24 jan. 2025.
Section
English Section
