Supply chain collaboration and organisational performance in the fast moving consumer goods industry

Abstract: This study investigated supply chain collaboration, which is a topic of high interest in the field of supply chain management. Purpose: The purpose of this study was to investigate how collaborative relationships with international suppliers enhance supply chain efficiencies, ultimately improving the organisational performance of imported goods in the Fast Moving Consumer Goods (FMCG) industry. Methodology: A case study approach was adopted in this research, and an online survey was conducted with the international suppliers of NHM-SA (fictitious name). Data was collected from 91 international suppliers; however, only 50 suppliers provided usable data. A quantitative approach was used to investigate the relevance of supply chain collaboration in attaining supply chain operational efficiencies, which ultimately enhances organisational performance. Findings: The concept of supply chain collaboration is of importance in the FMCG industry but is often limited due to operational issues with constraints such as the partners’ lack of commitment to a collaborative relationship. The results provided empirical evidence, showing that cost optimisation, communication and information sharing have a positive effect on organisational performance. The study results also proved that supply chain collaboration have indirect positive impacts on organisational performance. Limitations: This study was limited to a single case study from the FMCG industry. Therefore, caution should be exercised when generalising the results. Participants provided responses based on their experiences and perceptions and may therefore not be factual. Practical implications: The study demonstrated the various methods in which organisations form collaborative supply chains with their partners. Such collaborative relationships enhanced operational efficiencies, joint planning and knowledge sharing,..M.Com. (Business Managemen