STRATEGIC OPERATIONS MANAGEMENT IN FMCG: A COMPREHENSIVE REVIEW OF BEST PRACTICES AND INNOVATIONS

STRATEGIC OPERATIONS MANAGEMENT IN FMCG: A COMPREHENSIVE REVIEW OF BEST PRACTICES AND INNOVATIONS

22-03-24 | David Olanrewaju Olutimehin¹, Ekene Ezinwa Nwankwo², Onyeka Chrisanctus Ofodile³, & Chinonye Esther Ugochukwu⁴
Strategic Operations Management (SOM) in the Fast-Moving Consumer Goods (FMCG) industry is vital for driving efficiency, quality, and customer satisfaction. This review explores best practices and innovations in SOM within the FMCG sector, focusing on challenges such as demand volatility, short product life cycles, and complex supply chains. Key areas include inventory management, production planning, and scheduling, with an emphasis on demand forecasting, lean inventory principles, and just-in-time (JIT) systems. Advanced planning tools, enterprise resource planning (ERP) systems, and analytics are highlighted for optimizing production processes. Technology and innovation, including automation, AI, and IoT, are transforming FMCG operations, enhancing efficiency and sustainability. Collaboration and partnerships with suppliers, distributors, and stakeholders are crucial for supply chain optimization. Case studies of Procter & Gamble and Unilever demonstrate the impact of effective SOM practices on business performance. Future trends include emerging technologies like AI, robotics, and blockchain, which will further drive innovation and sustainability in the FMCG industry. The review underscores the importance of adopting a holistic approach to SOM, integrating people, processes, and technology to achieve competitive advantage and sustainable growth in the dynamic FMCG industry.Strategic Operations Management (SOM) in the Fast-Moving Consumer Goods (FMCG) industry is vital for driving efficiency, quality, and customer satisfaction. This review explores best practices and innovations in SOM within the FMCG sector, focusing on challenges such as demand volatility, short product life cycles, and complex supply chains. Key areas include inventory management, production planning, and scheduling, with an emphasis on demand forecasting, lean inventory principles, and just-in-time (JIT) systems. Advanced planning tools, enterprise resource planning (ERP) systems, and analytics are highlighted for optimizing production processes. Technology and innovation, including automation, AI, and IoT, are transforming FMCG operations, enhancing efficiency and sustainability. Collaboration and partnerships with suppliers, distributors, and stakeholders are crucial for supply chain optimization. Case studies of Procter & Gamble and Unilever demonstrate the impact of effective SOM practices on business performance. Future trends include emerging technologies like AI, robotics, and blockchain, which will further drive innovation and sustainability in the FMCG industry. The review underscores the importance of adopting a holistic approach to SOM, integrating people, processes, and technology to achieve competitive advantage and sustainable growth in the dynamic FMCG industry.
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