Phygital Mismatch: Navigating Inventory Discrepancies and Demand Uncertainty in the Automotive Supply chain

Abstract : This case study examines the “Phygital Mismatch” in the Indian automotive supply chain, where discrepancies between physical inventory levels and digitally projected demand create operational and financial challenges. Using secondary data from industry reports, newspapers, and published sources, the study investigates the causes and implications of inventory mismatches between automobile manufacturers and dealers. The findings reveal that information asymmetry, inaccurate demand forecasting, and inadequate coordination contribute to excess inventory, increased holding costs, reduced profitability, and declining customer satisfaction. The mismatch also affects manufacturers through production inefficiencies, delays in revenue realization, and weakened supply chain resilience, while generating broader economic implications. The study recommends strengthening real-time data integration, improving collaboration between stakeholders, adopting advanced inventory management practices, and leveraging digital technologies such as AI and predictive analytics. These measures can enhance supply chain synchronization, improve operational efficiency, support sustainable growth, and strengthen the competitiveness of the Indian automotive industry.