Challenges for Effective and Efficient Supply Chain Management for Fast Moving Electrical Goods (FMEG): A Case Study

Abstract

Fast Moving Electrical Goods (FMEG) industries are among the most dynamic industry these days. Short product life cycle, intricate supply chain, unpredictable demand, tight profit margins are major challenges for FMEG industries. Scarcity of raw material, unpredictable delay in transportation from foreign suppliers, non-availability of affordable skilled labor, changing customer demand have completely transformed the electric goods industries. Increasing demand for good-quality low-cost products is giving abundant opportunities of growth to FMEG industries if they manage issues and challenges of supply chain management (SCM). In this research paper, authors have studied the issues and challenges of FMEG supply chain using situation actor process–learning action performance (SAP–LAP) methodology. Authors have observed that Indian FMEG are facing challenges like supply chain collaboration (outsourcing of non-core operations, vertically integrating core competencies), retail integration, supply risk management (natural, terrorism, demand and supply), supply chain planning (demand-driven supply chains), reverse logistic, sustainability, and green supply chain and digital supply chain.