Supply chain design dimensions for supply chain resilience in the South African fast-moving consumer goods retail industry

Abstract

ABSTRACT This paper intends to empirically establish the supply chain design dimensions that influence the ability of retailers in South Africa’s fast-moving consumer goods (FMCG) industry to perform effectively with resilience. It further examines the extent of supply chain design dimensions impacting the variance on resilience in this industry. The study surveyed managers and supervisors of major South African supermarkets within the FMCG industry and employed univariate and multivariate methods to analyze the data collected. The paper established that technology advancement, economic influence, environmental changes, desired supply chain outcomes, and transport networks are the supply chain design dimensions with the most impact on the capability of the retail industry to perform efficiently and effectively with resilience. Furthermore, the paper revealed that transport networks, as an integral part of retail industry, impact the most on the variance of resilience for product availability. The findings imply that, despite the susceptibility to external and internal disruptions, performance and operations with resilience resonate with proper investments in technology, the available capacity under turbulent economic behavior, and a transport network for better customer experience. The paper further acknowledges the disruptive environmental changes, desired supply chain outcomes, and the need for a supply chain design for resilience in the retail industry.