Smart Warehousing in FMCG Sector: Challenges and Remedies

Smart warehousing represents a transformative advancement in supply chain management, integrating advanced technologies such as IoT, AI, and robotics to optimize operations and enhance efficiency. However, its adoption in developing economies, particularly in sectors like FMCG, faces significant challenges that require detailed exploration. This study aims to identify and prioritize the barriers to smart warehousing adoption, providing actionable insights for overcoming these obstacles. Focusing on Pakistan’s FMCG sector, a critical industry characterized by high product diversity and rapid turnover, the research offers a unique perspective on adoption challenges in a developing market context. Data were collected from 49 experts in the FMCG sector through a three-point Likert scale questionnaire, capturing perceptions on various barriers. The mean priority value (MPV) approach was employed to quantify these challenges, calculating their relative importance and determining a cut-off value to distinguish high-priority barriers. The analysis revealed key obstacles, including economic uncertainty, integration with legacy systems, skill gaps, workforce resistance, lack of infrastructure, and high capital investment costs. Other significant challenges include cybersecurity concerns, insufficient training programs, and data management complexities. These findings contribute to the literature on smart supply chains by highlighting the unique interplay of technological, organizational, and contextual factors in a developing economy.