Innovative Procurement Practices in FMCG: Harnessing Data Analytics for Enhanced Supplier Collaboration and Risk Management

Abstract

In the fast-moving consumer goods (FMCG) industry, procurement functions have become increasingly critical, with a need to enhance supplier collaboration, reduce costs, and proactively manage risks. This study investigates the impact of innovative, data-driven procurement practices, emphasizing the use of data analytics in supplier performance monitoring, predictive risk assessment, and collaborative demand forecasting. Through statistical analyses, including regression and cluster analysis, the findings demonstrate that data-centric procurement approaches significantly improve key performance indicators such as on-time delivery, quality compliance, cost savings, and risk mitigation. By leveraging data analytics, FMCG companies can build agile, resilient supply chains that respond effectively to disruptions and optimize resource allocation. This research contributes actionable insights for FMCG companies looking to integrate analytics into procurement processes, paving the way for sustainable growth and competitive advantage in an evolving market landscape.