ROLE OF TRUST AND RELATIONSHIP STRUCTURE IN IMPROVING SUPPLY CHAIN RESPONSIVENESS IN FMCG SECTOR

Abstract

Purpose: The current study is about supply chain network responsiveness in context of FMCG sector Pakistan. This sector has still not been studied in detail. The demand for raw material in this sector is very high because the products are used in day to day life and their demand is constantly increasing. Organizations cannot rely on poor quality goods because it will affect their goodwill in the long run. Therefore, the current study reflects on the importance of supplier trust, treating supplier as partners and supplier involvement in product development. If the supplier is treated as partner, their commitment will increase, and they will do more efforts to do their jobs. Also, if suppliers are treated as partner and they are involved in product development, they will be able to play their role in meeting organizational objectives. Methodology/sample: The current research is based on deductive approach. There is ample of literature on supplier trust and relationship and thus, the existing theory will be used to test on FMCG sector of Pakistan, to meet research objectives, the researcher has selected cross sectional and descriptive research design. The current research is based on FMCG sector and the population include all purchase officers working for same, the current research uses 100 sample size. The respondents will comprise of purchase officers working in FMCG of Pakistan, the current research uses 100 sample size. The respondents will comprise of purchase officers working in FMCG of Pakistan. Findings: Results of regression analysis revealed that supplier partnership is a significant predictor of trust. Regression analysis has also revealed that supplier timeline is a significant predictor of trust in FMCG sector. Moreover, it has been also found that supplier involvement in production process is also a significant predictor of the trust. It is an important and worthwhile finding of this study. Practical Implications: This study is very useful for the stakeholders of the industry, the study revealed that suppliers are very important for the organization and they should be given a status of partner so that the organization could attain competitive advantage.