Investigating the impact of smart supply chain technologies on operational efficiency of the fast-moving consumer goods manufacturing industry

Abstract

Background: This study investigated the impact of smart supply chain and smart technology on the operational efficiency of the fast-moving consumer goods (FMCG) manufacturing industry. Methods: A quantitative research approach was employed, and data were collected from 18 fast-moving consumer goods (FMCG) companies listed on the Nigerian Stock Exchange as of March 2024, located in Lagos and Ogun states, using a purposive sampling technique. The extent to which smart supply chain has been adopted by FMCG companies in the study area was assessed via descriptive statistics, while Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to test the proposed hypotheses. Results: The descriptive analysis indicates that ninety-four percent (94%) of the respondents' companies have adopted the use of a smart supply chain. The PLS-SEM result indicates that all eleven proposed hypotheses were accepted. This study reveals a statistically significant positive relationship between the direct and indirect effects of smart supply chain indicators (such as intelligent supply chain and interconnected supply chain) and smart technology on firm operational performance. Limitations of the investigation: The major limitation of this study is the small sample size; only the FMCG companies listed on the Nigerian Stock Exchange that are located in Lagos and Ogun state were considered. Practical implications: The study provides insight into the significant influence that the adoption of smart technology and supply chain has on operational performance of FMCG companies. Originality/Value: The study contributes to the limited literature on smart supply chain practices in emerging economies, offering empirical evidence of their influence on operational performance.