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An investigation of the challenges of supply chain integration in the FMCG industry: A case study of Unilever Nigeria in Kwara State

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Background of the study

Supply chain integration refers to the coordination and collaboration between various stakeholders in a supply chain to ensure seamless operations, from suppliers to consumers. In the Fast-Moving Consumer Goods (FMCG) industry, supply chain integration is particularly important due to the rapid movement of products, high demand variability, and the need for effective communication and information sharing (Nwachukwu et al., 2023). Unilever Nigeria, a major player in the FMCG sector, relies on an integrated supply chain to maintain product availability and customer satisfaction, especially in regions like Kwara State, where the market is rapidly expanding and competition is intensifying.

Supply chain integration in the FMCG industry can be complex due to several factors such as technological challenges, lack of standardized processes, and communication barriers between different supply chain partners. In Kwara State, Unilever faces challenges related to infrastructure limitations, regional distribution complexities, and the need for real-time data sharing between suppliers, manufacturers, and retailers. The effectiveness of Unilever’s supply chain integration strategies is vital to improving efficiency, reducing costs, and maintaining customer loyalty in this dynamic market.

This study aims to investigate the challenges Unilever Nigeria faces in integrating its supply chain in Kwara State, focusing on operational issues and strategies for improving coordination and collaboration across the supply chain.

Statement of the problem

Supply chain integration is essential for FMCG companies like Unilever Nigeria, as it helps to improve the overall efficiency of the supply chain, reduce operational costs, and ensure timely product delivery. However, Unilever Nigeria faces several challenges in achieving full integration of its supply chain in Kwara State. These challenges include inconsistent data sharing, communication barriers between supply chain partners, and difficulties in aligning supply chain objectives with business goals. Without effective integration, Unilever risks facing inefficiencies in inventory management, delays in product delivery, and higher operational costs. This study seeks to examine the specific challenges Unilever Nigeria faces in integrating its supply chain in Kwara State and propose strategies for overcoming these challenges.

Objectives of the study

  1. To identify the challenges Unilever Nigeria faces in supply chain integration in Kwara State.

  2. To examine the impact of these challenges on the efficiency and effectiveness of Unilever Nigeria’s supply chain operations.

  3. To explore strategies that Unilever Nigeria can implement to improve supply chain integration in Kwara State.

Research questions

  1. What are the key challenges Unilever Nigeria faces in supply chain integration in Kwara State?

  2. How do these challenges affect the efficiency and effectiveness of Unilever Nigeria’s supply chain operations?

  3. What strategies can Unilever Nigeria implement to improve supply chain integration in Kwara State?

Research hypotheses

  1. Unilever Nigeria faces significant challenges in integrating its supply chain in Kwara State.

  2. The challenges in supply chain integration negatively affect the efficiency and effectiveness of Unilever Nigeria’s supply chain operations in Kwara State.

  3. Implementing effective strategies for supply chain integration will improve Unilever Nigeria’s supply chain performance in Kwara State.

Scope and limitations of the study

This study will focus on Unilever Nigeria’s supply chain integration practices in Kwara State. Data will be collected from interviews with Unilever managers, suppliers, and logistics partners operating in the region. The study is limited by the geographic focus on Kwara State, which may not reflect the broader challenges or strategies employed by Unilever in other regions of Nigeria.

Definitions of terms

  • Supply chain integration: The process of coordinating and aligning activities and information across the supply chain to optimize overall performance and efficiency.

  • Fast-Moving Consumer Goods (FMCG): Products that are sold quickly at relatively low prices, such as food, beverages, toiletries, and other household products.

  • Operational efficiency: The ability of a company to deliver products or services effectively and with minimal resource usage, ensuring customer satisfaction while controlling costs.


 





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