Managing Product Allocation in a Scarce and Uncertain Supply Chain : Activities in a FMCG Company

Abstract: This case study is investigating the challenge of managing product scarcity in the supply chain by allocating scarce products to customers while maintaining customer relationships in the Fast-Moving Consumer Goods (FMCG) sector. Previous solutions on how to manage the situation of allocating scarce products have been inadequate, highly manual, and timeconsumingwork for all stakeholders. The purpose of this study is to investigate the challenges of achieving an effective supply chain during scarce and uncertain conditions and delivering a developed Business Continuity Plan (BCP) to cope with these challenges, by answering the research question: How should a Business Continuity Plan be set up to handle the allocation of scarce products to remain relevant and keep customers satisfied? A thematic literature review combined with unstructured and semi-structured interviews provided data showing that product scarcity is extra critical in categories such as electronics with highly seasonal demand combined with longer lead times and higher profitability. The most important factors to handle product allocation toward customer is the need for a more structured process, a high level of automation, and increased visibility. To make sure that the new process is anchored in the organization, raising awareness, having extensive onboarding sessions, and having good documentation on the processes were highlighted. The developed solution is a highly automated process in KNIME generating the allocation and visualizing it combined with other data in a Power BI report, increasing visibility and enhancing communication, answering the needs explained in the interviews which are highly aligned with the literature.