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

Author(s):

  • Kevin Forehand1 (American Public University System, USA)
  • Juan Roman1 (Embry-Riddle Aeronautical University, USA)
  • Thomas Schaefer1 (American Public University System, USA)

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.

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