Minimizing Inventory Waste in FMCG Industry Business Research Paper (Research Paper Sample)

Minimizing Inventory Waste in FMCG Industry
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Minimizing Inventory Waste in FMCG Industry
Fast Moving Consumer Goods (FMCG) is a significant industry in America and globally. In 2017, it recorded a value of 10,000 billion US dollars, and it will rise further $15,361.8 billion in 2030 (Kathiresan, 2019, p. 2). FMCG sector can be among the highly profitable sectors but seriously suffers from inventory waste because it involves short-life and perishable products.
FMCG supply chain faces substantial challenges resulting from environmental pressures, like climate change, industrial trends, technology, and demographics, like the global population increase. The food and beverage sub-sector, which represents 89% of the FMCG industry, faces the need to meet increasing demand as reports project a 40% rise in demand by 2050 arising from a corresponding population increase to 9 billion by the same year (Bharucha, 2018, p. 639). Albeit, the world is facing production resource constraints, such as diminishing clean water and productive land due to climate change, floods and drought, competing for land uses, and salinity. While this is the case, a significant amount of FMCG products that can reach the final consumer go to waste, with the food sub-sector reporting 40% of inventory loss (Bharucha, 2018, p. 639). There is a need to consider effective supply chain management techniques in the FMCG to minimize inventory waste, improve the businesses' performances in the industry, and meet the increasing consumer demand. This paper uses context analysis to determine ways of reducing inventory waste in the FMCG sector.