Supply chain practitioners' perceptions of supply chain integration in FMCG manufacturing firms

Abstract

Supply chain integration (SCI) is a phenomenon that has received growing attention from academia and industry practitioners alike. Studies suggest that firms with highly integrated supply chains can positively influence firm performance from both an operational and financial standpoint. The literature emphasizes three distinct dimensions of SCI; internal integration, supplier integration and customer integration. However, the scarcity of highly integrated supply chains could be widespread in South Africa due to the SCI perception gaps prevalent among supply chain practitioners in South Africa. The literature reveals that there are countless inconsistencies pertaining to the interpretation and execution of supply chain management practices among supply chain practitioners, across myriads of industries. This study aimed to investigate the various perceptions of the SCI construct harboured by supply chain practitioners in fast-moving consumer goods (FMCG) manufacturing firms. A generic qualitative research strategy was used as the method of inquiry in this research. Five FMCG manufacturing firms were sampled and a total of fifteen participants were interviewed though semi-structured interviews. The main findings of the study reveal that supply chain practitioners in FMCG manufacturing firms interpret the SCI construct differently. While some supply chain practitioners interpret the SCI construct in line with what is documented in the literature, others have misaligned interpretations of the construct. These differences in interpretation span across all tiers (strategic, tactical and operational) within FMCG manufacturing firms. The findings also reveal that supply chain practitioners in South African FMCG manufacturing firms, to a significant extent, identify with all the supply chain integrative practices relating to supply chain collaboration, intra/inter firm interaction and information sharing, as documented in the literature. The study’s findings contribute to the supply chain discipline by helping researchers as well as supply chain practitioners develop a complete understanding of the SCI construct which deliberately elaborates on the associated SCI dimensions, and explicitly articulates the integrative practices associated with the phenomenon. Managerial implications emanating from this study suggest that supply chain functions should strive to create awareness around the focal firm’s end-to-end supply chain activities, and how these activities impact each other. This can be done through building a culture of frequent inter- and intra- organisational interaction, as well as implementing relevant organisational learning interventions across all tiers within the focal firm. In addition, focal firms should also adopt and leverage off new technologies to ensure more reliable and real-time data, thus enabling more effective decision-making.