Implementing forward-integrated supply chain strategy to improve operational efficiency in South African FMCG manufacturers

Abstract

Research Purpose: Customer focus has become increasing critical in order for organisations to effectively compete. Organisations operate in continuously changing environments, with dynamic customer needs requiring that organisations frequently revisit their strategic objectives. Supply chain integration provides organisations with an opportunity to keep up with these changing environments, offering a platform for collaboration with external partners. This research explores three of the customer-focused supply chain capabilities and their relationship with organisation’s operational efficiency and overall performance Research Methodology: A quantitative and descriptive correlational research approach was conducted, with a self-administered online survey questionnaire sent to selected employees of FMCG organisations. A basis of the research was formed through a literature review focused on supply chain integration, in particular on the three forward-integration capabilities of customer-closeness, use of integrative technologies, and information and knowledge sharing. The research carried out descriptive analysis and correlational testing between the forward-integrated supply chain capabilities, and operational efficiency and overall organisational performance effects. Research Findings: analysis carried out suggests that the three forward-integration capabilities contribute positively to process improvement of supply chain integration efficiency and organisational performance. Organisations should increase focus on their relationship with customers, embrace the use of technology and employ information as a strategic resource.