The South African FMCGs Use of Green Initiatives to Maintain Competitiveness and Sustainability Under the Global Coronavirus Pandemic

Kenneth Mathu

doi:10.11648/j.jenr.20200904.14

Abstract

The adoption of supply chain management (SCM) strategy by enterprises since mid-1980s has immensely transformed the flow of products/services from supply side to the ultimate customers on the demand side. The era has also experienced innovations in technology which has continued to fast track the implementation of supply chain efficiency and effectiveness. The unfolding implementation of the fourth industrial revolution (4IR) is hoped to spike the supply chain response time and render them more resilient and competitive. The study explored how fast moving consumer goods (FMCGs) suppliers and traders, utilised green initiatives or green supply chain management (GSCM), under the ravaging global Coronavirus pandemic to retain competitiveness and sustainability. The study was grounded in the theory of sustainable development and the sustainability theory in business. An exploratory qualitative research methodology and constructivism paradigm were used and non-probability sampling process applied. The participants were senior managers of FMCGs suppliers and traders who were interviewed telephonically, as it was during the partial lockdown period to control the spread of Coronavirus in countries around the globe including South Africa. The local and international supply chain networks were covered in the interviews as these organisations also traded in imported goods. The interviews were recoded, transcribed, coded and analysed via content analysis. The study outcome indicated that GSCM improved cost-effectiveness as enterprises were more resilient and used technology intensively to enhance information and product flow in the supply chain network that spiked the turnover and margins. The transportation optimisation saved costs and reverse logistics reduced waste and increased efficiency which enhanced competitiveness and sustainability. The supply chain resilience mitigated the disruption from Coronavirus pandemic.

Highlights

The enterprises have gone through tremendous transformation in the last four decades from the emergence of supply chain management (SCM) strategy and intensification of technology application [28]
This study focused on these fast moving consumer goods (FMCGs) supply chains that source locally and internationally
This study pursued a qualitative research methodology and constructivism research paradigm to establish that green supply chain management (GSCM) enhanced competitiveness and sustainability of fast moving consumer goods (FMCGs) suppliers and traders in South Africa

Summary

Introduction

The enterprises have gone through tremendous transformation in the last four decades from the emergence of supply chain management (SCM) strategy and intensification of technology application [28]. The same period has seen the emergence of the global value chains (GVCs) from global manufacturing facilities that produce and supply products for the global markets. These manufacturing facilities receive raw materials from multiple suppliers and produce components and final outputs which are re-exported to various countries [49]. China has positioned itself as the global manufacturing epicentre for industrial and consumer products for developed and developing countries [51] These developments have transformed the consumer industry and broadened markets of goods/services as well as increased the risk factor in the supply chain. The finished products are shipped downstream to distribution centres (DCs) that supply the retailers through

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