Supply chain visibility tools usage and their impact on on-time delivery: a case study of a fast moving consumer goods small, medium enterprise in London

Abstract

The strategic importance of FMCG SME’s supply chains makes it paramount that their performances are measured. Performance measurement in the context of on-time delivery is of high importance to SME’s. SME’s compete with large companies within the FMCG sector, as such gaining a competitive advantage is an extremely difficult task for these small and medium companies.There is an everincreasing interest toward the field of supply chain management and much attention has been deemed towards the importance of information sharing in gaining competitive advantage for SMEs. The integration of the chain both internally and externally through information sharing ( visibility) can lead to increase supply chain performance such as on-time delivery, therefore increasing competitive advantage for the SME’s. The study aim to develop a conceptual framework and a model to evaluate the impact of visibility tools usage in FMCG SME’s. This research highlights some visibility tools such as ERP systems, Sage software that influences the level of information shared among the parties within the SME supply chain.This research examined the potential of information technology based tools and visibility factors and aims to provide factors that may influence the sharing of information between suppliers and customers along the supply chain, thus meeting on time delivery schedules. This research employed both quantitative and qualitative approaches, with regression and correlation tests also conducted. Two questionnaires were administered, one at the case study company, the other at 100 SME’s across London, 63 valid questionnaires were received and analyzed using SPSS software (manufactured by IBM, version 20). The findings of this research revealed that having shared values among SME’s influenced the level of information that is shared and thus the level of visibility achieved within the supply chain. Further, it was revealed that large companies are able to utilize more in depth IT based systems, while small and medium sized companies had a tendency to utilize informal means for their visibility tools. In addition, the analysis of the research model indicated that supplier lead time and supplier chain reliability greatly influenced the ICT infrastructure of a FMCG SME. The model analysis also indicated that the delivery lead time influenced on-time delivery. In addition supply chain responsiveness was found to explain 30.9% of the variances found in supply chain visibility.