Supply chain disruptions in the fast-moving consumer goods industry

Abstract

Background: The fast-moving consumer goods (FMCG) industry is a key sector in the South African economy. In this context, designing disruption-management strategies for a robust supply chain has become a critical worldwide issue that is still under-explored in the FMCG industry.

Objectives: The study investigated the supply-chain disruptions in the South African FMCG industry

Setting: The study was conducted mainly among the supermarket chains, hypermarkets or super stores, department stores, pharmacy chains, general dealers and speciality stores across South Africa.

Method: This was an exploratory qualitative study that employed interviews as the data-collection method. Twenty supply chain professionals were purposely selected on the basis of their experience and expertise in supply chain management within the FMCG industry. Thematic analysis was used as a method for data analysis.

Results: Six main themes emerged from the primary data and these included competitive market environment, geopolitics, automated distribution centres, natural disasters, rise of nationalistic sentiments and acute skills shortages.

Conclusion: The findings pointed to many uncertainties in the South African FMCG and retail industry and the study proposed possible resilient strategies to counter these disruptions.

Contribution: The first of the study’s suggested practical contributions is a framework for supply chain disruptions in the FMCG industry.