Inventory management and firm competitive advantage for online sales

Abstract

To remain competitive and to gain an advantage over competitors, companies are required to supply their goods more efficiently to the customer and streamline the process to make sure the product ordered reaches the recipient as soon as possible. However, under the ongoing COVID-19 pandemic suppliers and retailers have been forced to enter E-Commerce and online ordering which is all based on effective stock and inventory management. Existing research conducted shows a lack of sufficient information linking an effective inventory management system and process to the value it adds in gaining a competitive advantage. Notable since the advent of COVID, online sales have surged warranting that companies supply goods much faster without any delay to retain customers and to gain new customers. To make products available within the right time has become a competitive advantage for suppliers and retailers. The current study investigated how competitive advantage can be gained for online sales through identifying best practices for inventory management for distribution and logistics companies. The research implemented a cross-sectional approach, whereby information was elicited from 127 personnel comprising top management team, managers and operational workers of logistics and distribution companies in Johannesburg, South Africa. Both descriptive and inferential statistic were conducted. The partial least square structural equation modelling displayed a structural relationship between competitive advantage and inventory management practices dimensions., With COVID 19 majorly impacting operations firms are advised to manage orders more efficiently and forecast in meeting demand fluctuations