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Digital transformation and its role in FMCG supply chain resilience

Author

Listed:
  • Kudakwashe Tazvivinga

    (University of Johannesburg)

  • Alexander Samuels

    (North-West University, North-West, South Africa.)

Abstract

The main aim was to determine how the supply chains of the FMCG industry may enhance their resilience through the adoption of digital technologies. Additionally, enhancing visibility and transparency through the augmentation of operational efficiency to elevate overall performance. This analysis utilised the Uncertainty Framework theory, which provides a systematic approach for identifying, categorising, and managing uncertainties within the supply chain. Organisations can formulate strategies to effectively manage and mitigate risks by understanding the many dimensions of uncertainty within the supply chain and their interrelations. The research utilised a qualitative methodology, gathering data via semi-structured interviews with 25 supply chain specialists and senior executives possessing extensive experience in the FMCG sector. The study's findings indicate that digital transformation enhances agility, transparency, and data-driven decision-making, which is crucial for bolstering the resilience of the FMCG supply chain. Six themes emerged from the findings: data-driven decision-making, supply chain visibility and transparency, automation and robots, collaborative platforms and ecosystems, predictive analytics and forecasting, and traceability and sustainability. The research will enhance our understanding of the implementation of digital transformation initiatives throughout FMCG supply chains. This involves analysing the application of digital technologies in supply chain operations. The study may ascertain the impact of these technologies on various resilience criteria, including flexibility, agility, visibility, and responsiveness, by analysing the role of digital transformation in FMCG supply chains. The research findings can assist supply chain managers in making educated decisions on investments and strategic planning for digital transformation initiatives.Research on digital transformation in the FMCG sector is limited, particularly on these unprecedented upheavals. Moreover, there is little study connecting digital transformation with sustainability and resilience in FMCG supply chains, which is essential for comprehending how these projects might collaboratively enhance robust supply systems.

Suggested Citation

  • Kudakwashe Tazvivinga & Alexander Samuels, 2024. "Digital transformation and its role in FMCG supply chain resilience," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 6(5), pages 23-38, October.
    • Handle: RePEc:adi:ijbess:v:6:y:2024:i:5:p:23-38
    DOI: 10.36096/ijbes.v6i5.606
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    References listed on IDEAS

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