Understanding Organized Retail Supply Chain Performance Indicators for Business Growth

The socio-economic developments in India have pushed the demand for fresh farm products at the doorsteps. This is good for organized non-livestock retailing (NLR) which is retailing of agriculture and horticulture products. Expecting the better return, many national and international retailers are in the arena. The intense market competition has changed the scenario to supply chain vs. supply chain competition. This has prompted to understand key performance indicators (KPI) for this industry. In this research, the KPI are classified using factor analysis (FA) as: inventory metrics, customer metrics, flexibility metrics, and growth and learning metrics. Structural Equation Modelling (SEM) approach has been applied to test the hypothesis. The results support the hypothesis; (1) firms with more focus on inventory need more focus on flexibility; (2) firms with more focus on flexibility shall have higher level of growth and learning; and (3) firms with more focus on inventory shall have higher level of growth and learning. The primary data was collected from top 10 organized NLR players operating in Punjab, Chandigarh, New Delhi, and Gurgaon in India. Finally, 401 questionnaires were received. The results were tested and validated by rigorous statistical analysis.