FMCG Supply Chains Under Pressure: Building Resilience Amid Global Disruption
FMCG companies are sharpening their focus on supply chain resilience as continued geopolitical tensions, climate change, and economic uncertainty expose vulnerabilities across global networks.
Australia’s FMCG sector has experienced substantial disruption in recent years—from the fallout of the COVID-19 pandemic to the effects of extreme weather events, inflationary pressures, and global conflict. As a result, companies are rethinking procurement strategies, diversifying suppliers, accelerating digital transformation, and prioritising local sourcing where possible.
“Visibility is key,” noted Tony Simmonds, executive general manager of e-commerce and supply chain at Metcash, in a recent industry summit. “We need real-time data and seamless communication across the value chain to respond quickly to shocks.”
Advanced analytics, machine learning, and AI are being increasingly adopted in supply chain planning to enhance forecasting accuracy and improve demand planning—critical areas in the FMCG space where speed and precision are non-negotiable.
Localising supply chains is gaining traction as companies seek to lower risk exposure and reduce transit times. However, balancing cost-efficiency with resilience remains a top challenge. Sourcing closer to home can mitigate disruption but often comes at a premium, particularly in Australia’s vast geography and with its relatively smaller manufacturing base.
Another shift is in internal collaboration. Cross-functional alignment between procurement, logistics, marketing, and operations is being elevated as companies realise resilience cannot be siloed. This holistic approach is helping drive more agile decision-making in response to disruption, from packaging delays to ingredient shortages.
Global events, including the Russia-Ukraine conflict and recent shipping bottlenecks in the Red Sea and Panama Canal, are also prompting companies to reassess just-in-time models in favour of building risk-buffer stock and more secure supplier relationships.
While there’s no one-size-fits-all formula for supply chain resilience, the consensus is clear: investment in technology, strategic partnerships, and local capabilities will be essential for FMCG businesses aiming to protect margins and keep shelves stocked in a volatile environment.
With disruption now a permanent feature of the global landscape, the competitive edge increasingly belongs to those brands that can anticipate, adapt, and respond to supply chain pressure at speed and scale.