Asian Journal of Management and Commerce 2020; 1(1): 22-25

E-ISSN: 2708-4523
P-ISSN: 2708-4515
AJMC 2020; 1(1): 22-25 A study on the supply chain management practices
© 2020 AJMC
[Link] with special reference to Coimbatore & Tiruppur
Received: 14-11-2019
Accepted: 16-12-2019
districts
Arthi S
Student of II MCom IB, Arthi S
Sri Krishna Arts & Science
College, Coimbatore, Tamil
Nadu, India. Abstract
The cosmetics industry is a great example of the move to a demand market that most supply chains are
experiencing. Product development is completely driven by consumer demand and quickly changing
trends. The changes that occur are very dynamic as, one can see a new trend arising every minute in
this industry. Thus, the cosmetic industry’s supply chain management is challenging as well as
rewarding. The main aim of this study is to determine the supply chain practices followed by the
cosmetic product sellers scattered across the districts of Coimbatore and Tiruppur and also about the
supply chain challenges that are emerging while encountering the process of delivering quality
cosmetic products to consumers. This paper also explores about the current trend of using herbal
cosmetic products. The findings revealed that 96.7% of the cosmetic product sellers sell herbal
cosmetic products and increasing expectation of customers to want to buy high quality products at a
lesser rate pose as a challenge to the sellers. Also, the study has shown that the cosmetic product sellers
in Coimbatore and Tiruppur districts are into selling herbal cosmetic products due to the pressure of
competitors.

Keywords: Changing trends, supply chain challenges, herbal cosmetic products

Introduction
The cosmetics industry is a great example of the move to a demand market that most supply
chains are experiencing. Product development is completely driven by consumer demand and
quickly changing trends. This study is framed to understand the supply chain management
practices and challenges faced by the cosmetic products sellers in Coimbatore and Tiruppur
districts. It is an attempt to draw out results regarding the usage of herbal cosmetic products
in Coimbatore and Tiruppur districts. This study aims to find out whether the outlets are
ready to adapt themselves to the current scenario of this green revolution.

Statement of the problem

The statement of the problem can be summarized by the following question,
 To which extent herbal cosmetics products are sold by the cosmetic products sellers in
Coimbatore and Tiruppur districts?
 What are the best supply chain practices that the sellers adopt to effectively serve the
customers?

Objectives of the study

 To determine the supply chain practices adopted by cosmetic products sellers in
Coimbatore & Tiruppur districts.
 To establish the challenges faced in adopting the supply chain practices by cosmetic
products sellers in Coimbatore & Tiruppur districts.
 To study about the usage of herbal cosmetic products purchased by customers in
cosmetic product outlets in Coimbatore & Tiruppur districts.

Correspondence Research Methodology

Arthi S The research design used for this study is descriptive research, as the view of the cosmetic
Student of II MCom IB,
Sri Krishna Arts & Science
sellers are collected and analyse thereafter to arrive at solutions. The survey research was
College, Coimbatore, Tamil done in the form of personal interviews with the help of questionnaire. Convenience
Nadu, India. sampling method is chosen to collect data form the cosmetic product sellers.

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A total of 150 respondents has been taken for the study. is important to the cosmetic industry. The previous
researches have somewhat less significance because the
 Statistical tools used: Percentage Analysis, Annova consumer buying behavior has changed in the recent years
test, Chi-Square Test and Weighted Average Method. due to a lot of factors, like consumer buying capacity and
lifestyle, etc and thus impacting on the supply chain of the
Research Gap cosmetics industry.
The major gap is the regional aspect as no research has been
carried out pertaining to Coimbatore and Tiruppur districts. Data analysis
Secondly, the previous researchers have provided a detailed Annova Test
analysis of how sustainable supply chain works and how it

Factors Sum of Squares DF Mean Square F Significant value

Supply chain practice of jointly Between Groups 8.925 3 2.975 2.531 .059
solving problems regularly with Within Groups 171.615 146 1.175
suppliers Total 180.540 149
Between Groups 1.228 3 .409 2.439 .067
Supply chain challenge of increasing
Within Groups 24.512 146 .168
changes in customer demand
Total 25.740 149
Supply chain challenge of increasing Between Groups 5.627 3 1.876 2.019 .114
customer expectation about Within Groups 135.633 146 .929
cosmetics product quality Total 141.260 149
Supply chain challenge of increasing Between Groups 4.633 3 1.544 1.412 .242
customers shift towards online Within Groups 159.660 146 1.094
shopping Total 164.293 149
Supply chain challenge of lack of Between Groups 5.515 2 2.757 1.716 .183
co-operation among the concern and Within Groups 236.245 147 1.607
its suppliers Total 241.760 149
Between Groups 7.769 2 3.885 2.540 .082
Supply chain challenge of raw
Within Groups 224.824 147 1.529
material scarcity
Total 232.593 149
Supply chain challenge of poor Between Groups 10.018 2 5.009 3.019 .052
transportation and warehouse Within Groups 243.875 147 1.659
facilities Total 253.893 149

Chi-Square Test

Supply Chain Practices Demographic factors Table value Significant value

Age of the concern 0.05 0.058
i) Frequent contact with supply chain members is established
Capital invested 0.05 0.122
ii) Greater level of trust with key suppliers is created by the concern Nature of the concern 0.05 0.39
Supply Chain Challenges Demographic factors Table value Significant value
Age of the concern 0.05 0.067
Increasing changes in customer demand
Nature of the concern 0.05 0.144

Weighted Average Method

Weight (Rank)
Factors Weighted Average
1 2 3 4 5
Better quality 70 15 5 45 15 2.1
Concerned towards customers well-being 42 36 48 14 10 2.42
Due to competitions from many outlets selling herbal products 38 35 27 35 15 2.69
Higher prices for herbal products than the non-herbal products 8 30 14 20 78 3.86
To keep up with the current trend of herbal based cosmetic products 16 32 20 35 47 1.56

Findings the concern and the challenge of increasing customers

Annova Test shift towards online shopping.
 There exists a significant relationship between age of  There exists a significant relationship between nature
the concern and practice of jointly solving problems of the concern and the challenge of increasing changes
regularly with suppliers. in customer demand.
 There exists a significant relationship between age of  There exists a significant relationship between nature
the concern and the challenge of increasing changes in of the concern and the challenge of lack of co-
customer demand. operation among the concern and its suppliers.
 There exists a significant relationship between age of  There exists a significant relationship between age of
the concern and the challenge of increasing customer the concern and the challenge of shorter product life
expectation about cosmetics products quality. cycle.
 There exists a significant relationship between age of  There exists a significant relationship between nature

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of the concern and the challenge of raw material  There is a strong brand loyalty among the consumers.
scarcity. Though it is a right of consumers to buy particular
 There exists a significant relationship between nature brand of cosmetics, they must go for alternative brand
of the concern and the challenge of poor transportation if particular brand is not available. Then only the
and warehouse facilities. demand for cosmetics will be boosted.

Chi-Square Test Conclusion

 There exists a significant relationship between frequent The Indian cosmetic industry is booming and holds a
contact with supply chain members and the distinct position compared to other industries. This industry
demographic factors, age and capital invested craves for innovation. The cosmetic industry has come a
respectively. long way and the market is set to achieve tremendous
 There exists a significant relationship between greater growth in near future. Among the customers, the grade of
level of trust with key suppliers is created by the cosmetic products will continue to rise as long as improving
concern and the demographic factor, nature of the physical appearance remains a top social priority. It is
concern. evident from the study that supply chain challenges faced by
 There exists a significant relationship between the cosmetic products sellers of Coimbatore & Tiruppur
increasing changes in customer demand and the districts have a long way to go in order to have a smooth
demographic factors, age of the concern and nature of and issues free products to the consumers.
the concern.
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