The impact of supply chain networks and logistics service quality on supply chain effectiveness in retail industry in the Gauteng province

Abstract

The retail business in South Africa contributes significantly to national GDP and has undergone fast changes in logistics and supply chain processes, making effective logistics management critical to cost reduction and profitability.  This study investigates the impact of reverse logistics, warehousing, and supply chain networks on logistics service quality, as well as how logistics service quality influences overall supply chain effectiveness in the retail sector.  A quantitative study design was used, with data collected from 300 respondents in Gauteng, including managers, departmental personnel, and supply chain professionals.  To validate the hypothesised associations, the data were analysed with descriptive statistics, exploratory factor analysis, and structural equation modelling. The study found that reverse logistics (β = 0.71) and supply chain networks (β = 0.20) have a considerable favourable impact on logistics service quality, while warehousing had a minor effect (β = 0.08).  Logistics service quality significantly predicts supply chain effectiveness (β = 0.94), highlighting its importance in improving retail logistics performance.  These findings imply that the efficacy of reverse logistics systems and the strength of supply chain networks are critical variables in obtaining higher service quality and, eventually, supply chain effectiveness.  The report suggests that South African retailers must improve reverse logistics and optimise supply chain network integration to remain competitive, as well as solve warehousing inefficiencies. In practice, retailers should undertake focused training programs, pursue strategic recruitment to improve leadership ability, and invest in modernised storage infrastructure.  Furthermore, the implementation of enterprise resource planning (ERP) systems is suggested to increase information flow, coordination, and operational efficiency across logistics functions.