Supply Chain Efficiency in the Discount Store Industry Post COVID-19: Applying the Supply Chain Efficiency Ratio

Abstract

Over the course of calendar year 2019, businesses around the globe have experienced supply chain disruption due to the COVID-19 global pandemic. The strategic significance of the supply chain has been thrust into the forefront for businesses, economies, and society at large. It has become recognized by researchers and industry that there is a need for higher efficiency within the supply chain while remaining responsive to consumer needs. However, the fragmented and diverse nature of supply chain management, coupled with the complex accountancy and financial outputs of the supply chain, has resulted in limited development of a theoretical foundation specific to supply chain management. The aim of this investigation was to develop a new model (the Supply Chain Efficiency Ratio) that measures supply chain efficiency using financial ratios and by extending the Efficiency Model. Data for this investigation were obtained from U.S.-based public discount stores in the United States. The results of the multiple regression performed indicated that the Supply Chain Efficiency Ratio holds predictive value of an organization's supply chain efficiency p<.0005. From the study it was found that the Supply Chain Efficiency Ratio can be used as an indicator of supply chain efficiency in discount stores.

COVID-19, Supply Chain, and Profitability: A Survey Based on an Emerging Economy

“…As a unique crisis with colossal threat, COVID-19 should be dealt with holistic strategies. Forehand et al, (2021) have focused on efficiency in supply chain to combat the pandemic. They have developed a model for supply chain efficiency ratio that can be applied by the firms to achieve efficiency.…”

Strategies to Mitigate Supply Chain Disruptions During COVID-19: The Lived Experience of SC Professionals

“…Biswas and Das (2020) revealed manpower shortages, transport restrictions, and raw material scarcity. Due to inefficiency as proven by the supply chain efficiency ratio, the COVID-19 outbreak in China caused inventory shortages and cost increases to discount stores such as Walmart, Costco and Dollar General (Forehand, Roman, & Schaefer, 2021).…”

“…Furthermore, Gunessee and Subramanian (2020) and Wilding, Dohrmann, and Wheatley (2020) suggest supply chain innovation and value chain collaboration; reconfiguration for the flexible and costeffective supply chain; re-assessment of the current supply chain with a new set of priorities; and reformation of supply with multiple sources. Forehand et al (2021) discovered that supply chain efficiency was the reason for discount store retailers, namely Dollar Tree and Target to outperform other retailers during Covid-19. Orlando, Tortora, Pezzi, and Bitbol-Saba (2022) suggest knowledge preparedness to mitigate the supply chain disruptions during COVID-19.…”