Supply chain integration with corporate strategy for selected companies in the fast moving consumer goods industry in KwaZulu-Natal, South Africa

Abstract

ABSTRACT

Supply chain management, is the active management of supply chain activities to maximise customer value and achieve sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective and efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities. Currently, supply chain management has evolved into a complex system where there is a need for redesign and integration into the corporate strategy for strategic fit.

The study focuses on:

• establishing and analysing corporate strategies used by select FMCGs in KZN South Africa; • examining the challenges impacting on achieving competitive advantage; and

• determining performance measures for ensuring consistency between customer satisfaction and the supply chain capabilities (strategic fit).

The study followed an exploratory case study design and employed a descriptive, evaluative quantitative analysis method.

The results showed that across supply chain companies, the ultimate goal of integration has still to be achieved. There is a lack of trust and companies operate in separate silos.

A major recommendation is that supply companies should revisit their supply chain designs to synchronise with intra-intercompany integration built on achieving competitiveness and sustainable profitability through incremental continuous improvement and customer satisfaction.

The study concluded that it is imperative that all the elements of McKinsey’s 7- s resource capability model stay interconnected as a web to ensure the successful implementation of integration for strategic fit and superior business performance