Revealing FMCG Success in Pakistan: The Nexus of Supply Chain Practices and Competitive Advantage

In the current volatile corporate landscape, characterized by pandemics, technology innovations and market fluctuations, efficient supply chain management practices (SCMPs) are essential for improving organizational performance. Despite their significance, there is a paucity of research examining the distinct influence of SCMPs on firm operational and financial performance (FOFP) within Pakistan’s fast-moving consumer goods (FMCG) sector, especially with competitive advantage (CA) serving as a mediator. This study investigates four SCMPs: strategic supplier partnerships (SSPs), information sharing (INF), customer relationship management (CRM), and postponement (PPT) and their impact on FOFP, mediated by CA. Data from 386 FMCG employees in Pakistan were gathered through a questionnaire and analyzed utilizing structural equation modelling with SMART PLS software (version 4.0). Findings demonstrate that SSP, INF and CRM substantially improve FOFP, reducing cost, enhancing delivery times, and increasing market share and profitability. Nonetheless, PPT demonstrates no substantial direct or mediated influence on FOFP, indicating its restricted relevance in FMCG settings absent strategic planning. CA positively influences the link among SSP, INF, CRM and FOFP, strengthening cost leadership and differentiation. These findings direct managers to emphasize SSPs, INF and CRM over conventional methods, perhaps using CRM-driven loyalty programmes to enhance market share.