Supply Chain Conceptual Model in Logistic Operation Strategies for Best Practice Performance


Business actors, ranging from national to global levels, seek to capitalize on competitive advantages, and modern supply chains often adopt a globally distributed manufacturing system by outsourcing logistics processes to service providers. In the FMCG (Fast- Moving Consumer Goods) industry, companies must effectively control the supply chain through the establishment of a robust logistics and SCM (Supply Chain Management) management system. This study aims to analyze and describe an efficient logistics management model in the FMCG industry to enhance company performance. The research employs a qualitative descriptive method, utilizing a narrative literature study and conducting case studies on FMCG companies in Indonesia. The study’s findings demonstrate that building and implementing an effective logistics model, particularly through the integration of information technology, service quality, and communication, along with optimizing delivery methods, can significantly improve company performance in the FMCG industry. Moreover, the study highlights the impact of commitment and trust on loyalty, attitudes, and behavior concerning logistics management within the FMCG sector.

Keywords: business, FMCG, logistics, operations management, supply chain management

[1] Al-Shboul MA, Barber KD, Garza-Reyes JA, Kumar V, Abdi MR. The effect of supply chain management practices on supply chain and manufacturing firms’ performance. Journal of Manufacturing Technology Management. 2017;28(5):577–609.

[2] Felea M, Albastroiu I. “Defining the concept of supply chain management and its relevance to romanian academics and practitioners,” Amfiteatru Economic Journal. 2013;15(33):74–88.

[3] Saeed MA, Kersten W. Drivers of sustainable supply chain management: identification and classification. Sustainability (Basel). 2019;11(4):1–23.

[4] Zulkarnain D, Wahyudi E, Sasongko S; Holding Company. Integration Strategy of Marketing and Supply Chain PT Semen Indonesia (Persero) Tbk. Holding Company. Regional Dynamic: Journal of Policy and Business Science. 2020;1(1):48.

[5] Manders JH, Caniels MC, Ghijsen PW. Exploring supply chain flexibility in a FMCG food supply chain. Journal of Purchasing and Supply Management. 2016;22(3):181– 195.

[6] Balakrishnan A, Geunes J. Collaboration and coordination in supply chain management and e-commerce. Production and Operations Management. 2004;13(1):1–2.

[7] Elfawal A, Ragheb MA, Adel R. Supply chain management practices, innovation capabilities and operational performance: An empirical evidence from the FMCG sector. The Business and Management Review. 2021;12(1):70–81.

[8] Delfmann W, Albers S. “Supply chain management in the global context.” 2000.

[9] Hilletofth P, Ericsson D, Hilmola O, Ujvari S. “Differentiated supply chains strategies based on customer insights,” Flexible Automation and Intelligent Manufacturing, vol. 46, 2008.

[10] Chang CH. A study of global logistics management strategies: Based on the bicycle manufacturing. Journal of Statistics and Management Systems. 2009;12(3):543–559.

[11] Liu C, Feng Y, Lin D, Wu L, Guo M. Iot based laundry services: An application of big data analytics, intelligent logistics management, and machine learning techniques. International Journal of Production Research. 2020;58(17):5113–5131.

[12] Hussein Ali A, Gruchmann T, Melkonyan A. Assessing the impact of sustainable logistics service quality on relationship quality: Survey-based evidence in Egypt. Cleaner Logistics and Supply Chain. 2022;4:1–12.

[13] Madanhire I, Mbohwa C. “Enterprise Resource Planning (ERP) in improving operational efficiency: Case study,” Procedia CIRP. 2016;40(2001):225–229.

[14] Gattiker TF, Goodhue DL. What happens after ERP implementation: understanding the impact of interdependence and differentiation on plant-level outcomes. Management Information Systems Quarterly. 2005;29(3):559–585.

[15] Dowlatshahi S. Strategic success factors in enterprise resource-planning design and implementation: A case-study approach. Int J Prod Res. 2005;43(18):3745–3771.

[16] Permana RMT, Hamidah SF. “Analyze the marketer activity in digital era with implemented digital ethic,” Jurnal Manajemen dan Bisnis Performa. 2022 Nov;19(2):45–49.

[17] Baha H. An introduction of descrptive analysis its advantage and disadvantages. Research Methods in Comparative Politics; 2016.

[18] Team CF. “Fast-Moving Consumer Goods (FMCG), ” Apr. 28, 2022. goods-fmcg/ (accessed Sep. 15, 2022).

[19] Kenton W. “Fast-Moving Consumer Goods (FMCG) industry: Definition, types, and profitability.” 2021 Dec. fmcg.asp (accessed Sep. 15, 2022).

[20] Pahwa A. “What is FMCG? - Characteristics, types, examples,” May 08, 2022. (accessed Sep. 15, 2022).

[21] Adhikresna M. “Kantar Rilis Merek FMCG Favorit Lewat Ajang Brand Footprint 2022,” Marketeers, May 31, 2022. favorit-lewat-ajang-brand-footprint-2022 (accessed Sep. 15, 2022).

[22] Alonso E, Gregory J, Field F, Kirchain R. Material availability and the supply chain: Risks, effects, and responses. Environmental Science & Technology. 2007 Oct;41(19):6649–6656.

[23] Fernie J, Sparks L. Logistics and Retail Management. 5th ed. United Kingdom: Kogan Page Limited; 2019.

[24] Waters D. Logistics: An introduction to supply chain management. New York: Palgrave Macmillan, 2003.