The Impact of Inventory Management Practices On Customer Satisfaction In Supermarkets

Abstract

The respective research study has introduced the critical position of inventory management within the retail sector, and particularly the supermarkets, where satisfaction is usually associated with the availability of products and proper stock control. The introduction has also delineated how appropriate inventory practices play a pivotal role in competitive advantages and also in lessening operational costs while the demands of the customer are able to be fulfilled in a timely manner. The section of Review of Literature also covers available studies on different strategies in managing inventories, such as JIT and EOQ, and the application of advanced technologies, like EPOS. In particular, it accentuates the shortcomings of literature; the scant numbers of comprehensive studies that directly link inventory management practices to customer satisfaction but within a supermarket context. This research study addresses these knowledge gaps in helping understand better how supermarkets can use effective inventory management to enhance customer satisfaction and operational improvement. The following paper also discusses how inventory management practices affect customers' satisfaction with supermarkets, and as such, it focuses on Tesco. A mono-methods approach was used in this study, wherein quantitative surveys were employed in data gathering for customers and staff of Tesco dealing with inventory management. It was observed from the results that good practices of inventory management, like an automated replenishment system and correct demand forecasting, are positively correlated with high levels of customer satisfaction. It can be gauged from the discussion that these practices reduce stockouts, and improve product availability, and overall shopping experience, thereby fostering customer loyalty. The study concludes that supermarkets have to invest in advanced inventory management technologies and staff training programs to maximize their stock control activities and meet customer expectations. Predictive analytics can further be integrated with ongoing replenishment systems to maintain optimal inventory levels and bottom-line customer satisfaction continuously.