Unravelling the Bottlenecks: Identifying and Addressing Inefficiencies in the Logistics Distribution of Fast-Moving Consumer Goods in India
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Abstract
The Fast-Moving Consumer Goods (FMCG) sector is a cornerstone of modern economies, providing essential products for daily life. Despite its pervasive reach, the industry operates on razor-thin profit margins due to the complexities of distribution. The supply chain is at the heart of these operational challenges, where inefficiencies in logistics can lead to significant financial losses. This study primarily focussed on identifying and analyzing the root causes of inefficiencies within the FMCG supply chain. Secondly, the study suggests few most effective solutions which might help overcoming the existing inefficiencies in FMCG supply chain. A Hierarchical model containing the inefficiencies or challenges, and the proposed remedial solutions was developed and analysed empirically to visualize the relative significance of the model factors. A methodology based on Fuzzy Analytical Hierarchy Process (FAHP) has been proposed in this study to analyse the developed model empirically. Common issues such as delays, product damage, stockouts, and excess inventory erode profitability, making supply chain optimization a strategic imperative for survival and growth. By examining the most severe distribution challenges and the most effective remedial strategies to overcome them, this research seeks to provide FMCG companies with actionable insights to streamline operations, reduce costs, and enhance customer satisfaction. Finally, the study opens the window for few most potential future research opportunities in the targeted domain of FMCG supply chain.