Improving lead times from distribution centre to retail stores: A case study of the retail industry
List of Authors
  • Chutikarn Suppatvech, B. , Zakiah Syamra’ Suhaimi, A.

Keyword
  • Lead Time, Retail Industry, Logistics, Distribution, Supply Chain Integration, Agile Practices

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.

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