Exploring the Challenges of Industry 4.0 Adoption in the FMCG Sector: Implications for Resilient Supply Chain in Emerging Economy

Md Shihab Shakur, Maishat Lubaba, Binoy Debnath, A. B. M. Mainul Bari and M. Azizur Rahman ()
Additional contact information
Md Shihab Shakur: Department of Industrial and Production Engineering, Bangladesh University of Engineering and Technology, Dhaka 1000, Bangladesh
Maishat Lubaba: Faculty of Science and Engineering, Macquarie University, Sydney, NSW 2109, Australia
Binoy Debnath: Department of Industrial and Production Engineering, Bangladesh University of Engineering and Technology, Dhaka 1000, Bangladesh
A. B. M. Mainul Bari: Department of Industrial and Production Engineering, Bangladesh University of Engineering and Technology, Dhaka 1000, Bangladesh
M. Azizur Rahman: Department of Mechanical and Production Engineering, Ahsanullah University of Science and Technology, Dhaka 1208, Bangladesh

Logistics, 2024, vol. 8, issue 1, 1-28

Abstract: Background: Fast-moving consumer goods (FMCG) supply chains are experiencing various challenges due to the interactions between consumers and decision-makers during physical distribution, manufacturing, wholesale and retail. One possible strategy to address these challenges for smoothing the supply chain (SC) and logistics operations is to adopt Industry 4.0 (I4.0) based technologies in the FMCG business processes. In this regard, digitalization and automation of the FMCG supply chain can be strengthened by the alluring properties of I4.0 technologies. Methods: This study identified nine significant challenges through a literature review and expert validation. Later, the challenges were evaluated using a novel multicriteria decision-making (MCDM) framework, the Bayesian best worst method (BWM). Results: The findings indicated that “requirement for substantial investment and resources”, “incompatible technological infrastructure” and “poorly structured value chain” are the most significant challenges to implementing I4.0 in the FMCG industry. Conclusions: The study is expected to significantly contribute to improving the FMCG supply chain’s resilience, sustainability, visibility, traceability and responsiveness. Additionally, the research can provide industrial practitioners valuable insights into implementing I4.0 in FMCG and similar sectors and thus promote SC sustainability and resilience in those industries.

Keywords: supply chain; FMCG business; Industry 4.0; multicriteria decision-making (MCDM); Bayesian best worst method (BWM) (search for similar items in EconPapers)
JEL-codes: L8 L80 L81 L86 L87 L9 L90 L91 L92 L93 L98 L99 M1 M10 M11 M16 M19 R4 R40 R41 R49 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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