Abstract
The Internet-of-Things (IoT) has the opportunity to revolutionise the Fast Moving Consumer Goods (FMCG) industry, allowing for unparalleled data collection, analysis and subsequently action driven insights. The underlying enabler of IoT, Radio Frequency Identification (RFID) technology, has long been the subject supply chain management literature as the technology to provide the ability to deliver supply chain efficiencies through improved visibility throughout the supply chain, raw material / inventory management or shrinkage management. While these are true, the delivery of these benefits often do not deliver a sustainable return on investment (ROI) for all stakeholders involved across the full supply chain.
This thesis reviews the current state of the FMCG industry and its relationship with IoT, proposing an alternative business model to the traditional brick and mortar models we have seen for the past 100 years. A model is proposed that leverages both RFID and IoT technologies to deliver an intelligent household platform managed by a centralised group of FMCG manufacturers to meet demands of their customers without the retailer support.
Two studies were conducted. First, a design science research (DSR) study consisting of high profile, senior and c-suite FMCG industry professionals, who provided iterative feedback over two rounds on the proposed model, until a final model was developed. Second, a consumer acceptance model was developed to measure consumer adoption of the proposed model. Using existing IoT adoption theory as a basis, a survey of 306 consumers was undertaken and analysed with PLS-SEM to evaluate the relationship of key points raised in the literature review & by the professionals in the evaluation of the earlier DSR model.
The outcome of the research finds that FMCG manufacturers would need to overcome retailer pushback of the proposed model, as well as likely inter-organisational politics surrounding a co-operative based model, but participants agreed that the FMCG industry would be interested in the data collection and financial benefits of the proposed model. From a consumer acceptance perspective, consumers would be willing to accept the proposed model if they were to gain sufficient benefits from its use.