Operational Excellence in the Footwear Industry in Eastern Zone of India through Integrated Distribution, and Inventory Strategies: An Analysis of Innovations and Their Effects on Non-Moving Stock

Abstract

The footwear industry in India, particularly in the Eastern Zone, is experiencing rapid growth but continues to face significant operational challenges linked to distribution inefficiencies and the management of non-moving stocks. Demand fluctuations, seasonality, fragmented distribution channels, and limited adoption of advanced technologies often result in unsold inventory that locks capital and reduces responsiveness to consumer needs. Against this backdrop, achieving operational excellence requires an integrated approach to distribution and inventory strategies that not only improve efficiency but also minimize the risks associated with stagnant stock.

This study explores how innovations in distribution and inventory management contribute to operational excellence in the footwear industry of Eastern India.  The research aims to identify key bottlenecks in current practices, assess the causes of non-moving inventory, and examine innovative solutions—ranging from demand-driven replenishment and zone-specific distribution hubs to cloud-based ERP systems, real-time tracking, and data-driven forecasting models. Particular emphasis is placed on the integration of offline retail networks with digital platforms, enabling better stock visibility and faster liquidation strategies through discounting, bundling, and online clearance channels.

The findings highlight that non-moving stock primarily stems from inadequate demand forecasting, inefficient logistics routing, and poor alignment between manufacturing, warehousing, and retail functions. Firms that exhibit operational excellence are those that adopt leaner, technology-enabled systems, leverage regional consumer insights, and create agile, responsive supply chains. Such innovations not only reduce working capital tied up in slow-moving goods but also enhance profitability and resilience in a competitive and dynamic market.

The study contributes to both theory and practice by contextualizing supply chain and inventory challenges within an underexplored region of India while offering practical recommendations for manufacturers, distributors, and retailers. It demonstrates that operational excellence in the footwear sector can be achieved through the synergy of integrated distribution networks, advanced inventory management tools, and innovative stock liquidation practices. Ultimately, these strategies build a foundation for sustainable growth, improved customer satisfaction, and long-term competitiveness in the footwear industry.