Comparative analysis and implementation of a transformative business and supply chain model for the FMCG sector in Africa and the USA

In the fast-moving consumer goods (FMCG) industry, inventory management is a critical component of supply chain management because it directly impacts cost efficiency and customer satisfaction. For instance, effective inventory management can minimize overstocking and reduce replenishment delays, which are particularly important in multi-echelon supply chain systems characterized by high complexity and dynamic demand. This study proposes a method based on deep reinforcement learning (DRL) aimed at optimizing replenishment decisions in multi-echelon inventory systems for FMCG industries. We designed a Dynamic Replenishment FMCG Multi-Echelon Optimization (ME-DRFO) model and incorporated a Markov Decision Process (MDP) to model the multi-echelon inventory system. By applying an improved Soft Actor–Critic with an adaptive alpha and learning rate (SAC-AlphaLR) algorithm, which introduces adaptive temperature parameters and adaptive learning rate mechanisms, our approach not only dynamically adapts to environmental changes but also effectively balances exploration and exploitation, ultimately achieving global replenishment cost minimization while ensuring supply chain stability. Through numerical experiments, our method demonstrates excellent performance by reducing replenishment costs by 12.31% and decreasing inventory shortages to 2.21%, significantly outperforming traditional methods such as overstocking, Particle Swarm Optimization (PSO), and the standard Soft Actor–Critic (SAC). This research provides new theoretical insights into multi-echelon inventory optimization and practical solutions for effectively managing complex supply chains under uncertain and dynamic conditions.

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Digital transformation and its role in FMCG supply chain resilience

Tazvivinga,

Samuels

2024

IJBES

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The main aim was to determine how the supply chains of the FMCG industry may enhance their resilience through the adoption of digital technologies. Additionally, enhancing visibility and transparency through the augmentation of operational efficiency to elevate overall performance. This analysis utilised the Uncertainty Framework theory, which provides a systematic approach for identifying, categorising, and managing uncertainties within the supply chain. Organisations can formulate strategies to effectively manage and mitigate risks by understanding the many dimensions of uncertainty within the supply chain and their interrelations. The research utilised a qualitative methodology, gathering data via semi-structured interviews with 25 supply chain specialists and senior executives possessing extensive experience in the FMCG sector. The study's findings indicate that digital transformation enhances agility, transparency, and data-driven decision-making, which is crucial for bolstering the resilience of the FMCG supply chain. Six themes emerged from the findings: data-driven decision-making, supply chain visibility and transparency, automation and robots, collaborative platforms and ecosystems, predictive analytics and forecasting, and traceability and sustainability. The research will enhance our understanding of the implementation of digital transformation initiatives throughout FMCG supply chains. This involves analysing the application of digital technologies in supply chain operations. The study may ascertain the impact of these technologies on various resilience criteria, including flexibility, agility, visibility, and responsiveness, by analysing the role of digital transformation in FMCG supply chains. The research findings can assist supply chain managers in making educated decisions on investments and strategic planning for digital transformation initiatives.Research on digital transformation in the FMCG sector is limited, particularly on these unprecedented upheavals. Moreover, there is little study connecting digital transformation with sustainability and resilience in FMCG supply chains, which is essential for comprehending how these projects might collaboratively enhance robust supply systems.

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Comparative analysis and implementation of a transformative business and supply chain model for the FMCG sector in Africa and the USA

Cited by 3 publications

References 23 publications

Quality Culture in Advertising Agencies and Creativity for Campaign Effectiveness: Analysis of Six Sigma Practices

Quality Culture in Advertising Agencies and Creativity for Campaign Effectiveness: Analysis of Six Sigma Practices

A Deep Reinforcement Learning-Based Dynamic Replenishment Approach for Multi-Echelon Inventory Considering Cost Optimization

Digital transformation and its role in FMCG supply chain resilience

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