Understanding Supply Chain Agility in the FMCG Context: An Analysis of Interactions Among Agility Enablers

Purpose This study aims to investigate how supply chain (SC) agility can be achieved in the context of the fast-moving consumer goods (FMCG) industry. It conceptualizes a set of agility enablers in the FMCG context and then analyses them by considering how they are interdependent and interrelated. Design/Methodology/Approach Interpretive structural modeling was used to analyze the enablers, evidenced by interviews with industry experts. Findings The findings indicated that flexibility and lead time reduction are key competencies for supply agility, and their directions are decided by market awareness represented by market sensitivity, change alertness, and market information sharing. Also, the results showed that several internal and external integration (i.e., SC collaboration, process integration, trust, and communication channels) are required for building market awareness, generating a large self-enhancing loop to influence each other. The ultimate driving power was found to be the willingness of SC agility by top management and employees. Research Implications This study examined characteristics of SC agility in the FMCG industry, thus enriching current knowledge of SC agility. Furthermore, since the FMCG industry has a complex SC design and faces numerous challenges, the findings of this study can help SC managers by providing fresh insight into what is required to build more agile SCs in the industry.