Can Supply Chain Management Practices Influence Customer Satisfaction and Loyalty?

Supply chain management (SCM) practices and responsiveness have gained importance in recent years, as they have a great impact on customer satisfaction and loyalty. This study aims to determine the effects of SCM practices and responsiveness on customer satisfaction and loyalty in specific business units in Chennai. 300 purchase managers at supermarkets were selected on convenience basis and assessed using the structured questionnaire. Reliability and validity tests were conducted. Factor analysis involving EFA, CFA, and structural equation modeling has been used to identify the impact of SCM practices and supply chain responsiveness (SCR) on customer satisfaction and loyalty. Second-order structural equation modeling was used to test the hypotheses. The results indicated that SCM practices and SCR are said to be positively related to customer satisfaction and loyalty. The study concludes that SCM practices enhance customer satisfaction and loyalty in supermarkets. The study endorses that customer satisfaction and customer loyalty can be enhanced by the joint efforts of suppliers and procurement managers.