Dynamics of supply chain distribution systems in the apparel industry

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Abstract

Expansion into new markets creates new opportunities and dynamics which could enhance a company’s growth prospects. It thus calls for scalable supply chain distribution systems in competitive marketplaces. The retail supply chain requires sustainable distribution systems to enhance cost efficiency. This study examined the influence of centralised, decentralised, or hybrid distribution systems on agile service delivery, productive human capacity and the supply chain process and technology. First, the study aimed to establish whether a centralised or decentralised supply chain distribution system supports expansion to the African marketplace. Secondly, this study assessed the challenges of inventory positioning and availability on the existing outbound and inbound product flow systems across the African continent. Thirdly, the study examined the interrelated strategic distribution centre performance level to develop the supply chain distribution value proposition model. A descriptive research design was employed using univariate and multivariate methods and data were gathered from 100 staff in an apparel company. The study found that a sound distribution centre requires efficient supply chain systems and a strong workforce. This calls for training and development of employees to improve the organisation’s productivity and efficiency. The managerial implications include the need to ensure that distribution centres support sustainable product availability.

Keywords: Centralisation, Decentralisation, Distribution, Product Availability

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: L18, L11, F18, L63

Received: 12.09.2022
Accepted: 14.04.2023
Published online: 19.04.2023

How to cite this paper: Mbhele, T. P. (2023). Dynamics of supply chain distribution systems in the apparel industry [Special issue]. Corporate Governance and Organizational Behavior Review, 7(2), 208–224. https://doi.org/10.22495/cgobrv7i2sip1