Implementing Blockchain in the supply chain of FMCG companies for better demand forecasting and logistics operation.

Abstract

Purpose- This study aims to enact Blockchain in the corporate supply chain sector of FMCG companies to ensure better demand forecasting and logistics operation in Bangladesh. It aims to explore the problem of product shortage and demand fluctuation in any particular area.

Methodology- The primary data related to the study has been collected through surveys. Data related to the product sales and product demand is collected through a survey of 700 retail outlets situated in 7 major cities in Bangladesh. To find the facts regarding the problem of actual demand forecasting, an interview session has been taken with 40 Territory Officers in this field. Also, a questionnaire session has been taken for the study.

Findings- Results demonstrated that there is a problem with real-time data collection regarding the consumption of the products. For this, the management of the company cannot be able to predict the sales accurately. Management became misguided to produce the products. For this reason, the problem of product shortage arose.

Practical Implication- Blockchain can ensure real-time or end-to-end data for the company in the department of the supply chain. Implementing blockchain in the distribution chain sector can ensure better demand forecasting for the company. Also, the logistics operations can be furnished by accurate end-to-end tracking.

Originality- This study is the first attempt to identify the problem relating to demand forecasting and product shortage in the FMCG sector in Bangladesh. Also, this study is the first to implement Blockchain in the field of distribution to collect real-time sales data for the company.