Managing Supply Chain for FMCG Products : Focus in improving its Effectiveness with Special Reference to Mumbai Region

Abstract

The pandemic situation due to COVID-19 created shifts in the consumers’ expectations for various products/services across the globe. The consumers’ preferences have been changed significantly to use value based products/services. The impact of social media has educated the consumers to be aware of the current crisis prevailing in the country.  As a result of this, numerous changes have been taking place in the distribution and the consumption pattern across the world. The growing needs of the economy and the aspects of this pandemic situation created fluctuations between demand and supply for products/services. The productivity of agriculture and manufacturing has been severely affected leading to the unemployment, shortage of manpower and raw materials. The agriculture and manufacturing requires stronger network of supply chain which can deliver the products/services to the customers with comfort and convenience. There is a need to improve effectiveness of the supply chain especially for FMCG products as it is a mass production process.

 The distribution pattern of the suppliers changed from traditional to modern with digitalisation due to the innovations spearheaded through ecommerce. The shopping behaviour of the consumers have transformed primarily from offline mode to online mode. The consumers have preferred to adopt healthy lifestyle and changed their attitude by integrating their needs, want and desire to face the current pandemic situation.         

The restrictions of lockdown and norms of social distancing necessitated the suppliers to propose new methods in managing the supply chain of FMCG products. The relationship of the suppliers with consumers developed variety shopping habits leading to the new dimensions in the buying behaviour which is an absolutely a new phase of distribution process. An attempt has been made through this research paper to create structural equation modelling for managing the supply chain of FMCG products. Structural equation modelling has been developed to determine the impact of components responsible for improving effectiveness for managing supply chain of FMCG products. The research paper also highlighted on various issues in managing the supply chain of FMCG products supported over the both sources of fcollection methods.