IMPACT OF DIGITALIZATION ON THE SUPPLY CHAIN PERFORMANCE IN INDIAN CENTRIC

Abstract

This research study explores the growing role of digitalization in reshaping supply chain performance in the Indian context. In today’s increasingly competitive and technology-driven market environment, the ability of organizations to adapt and integrate digital technologies into their supply chain operations has become a key differentiator. This project assesses the level of digital adoption, its perceived impact on performance metrics, and the challenges faced by Indian companies in this digital transition. The study begins by examining the historical development of supply chain management and how global trends like Industry 4.0 have influenced digital transformations in supply chains across the world. Special attention is given to the unique dynamics of Indian supply chains, which often suffer from infrastructure limitations, manual processes, and fragmented operations. Through an extensive literature review, the research highlights how technologies like ERP, AI, IoT, blockchain, and cloud computing are enabling better inventory visibility, cost efficiency, forecasting, and customer responsiveness. Primary data was collected using a structured questionnaire distributed among professionals and students across sectors such as manufacturing, logistics, FMCG, e-commerce, and consulting. The quantitative data was analysed using statistical tools like the Chi-square test and Spearman’s correlation via SPSS software. The sample consisted of 100–150 participants with diverse exposure to supply chain operations and digital technologies. The findings indicate that while digitalization is perceived to enhance supply chain performance—especially in areas like cost reduction and flexibility—there are still significant gaps. Not all technologies show a statistically significant association with performance improvements, particularly in inventory visibility, coordination, and customer satisfaction. However, statistically significant relationships were found between cost reduction and digital adoption, as well as between flexibility/responsiveness and digital maturity. The study also reveals that investment in digital training correlates with higher digital maturity, although the relationship is weak. Challenges such as high costs, lack of digital skills, change resistance, and insufficient infrastructure remain prevalent in many Indian businesses, particularly among SMEs. vi In conclusion, digitalization is undeniably transforming Indian supply chains by introducing agility, transparency, and resilience. Yet, to fully capitalize on these benefits, organizations must invest in workforce upskilling, infrastructure development, and scalable digital strategies. This research provides practical recommendations and identifies areas for future study to support India's transition toward globally competitive, digitally enabled supply chain networks.