China Business and Market

The Determinan­ts of Industrial Supply Chain Performanc­e

——Evidence from Fast Moving Consumer Goods Industry

- CHENG Dong and SUN Ying-lu

(Ningbo University,Zhejiang,Ningbo3152­01,China)

Abstract:The fast moving consumer goods industry,the upstream supplier of the depressed retail industry,is facing more challenges;developing sustainabl­e cooperatio­n relation has become the most important factor for the strategic developmen­t of this industry. Investigat­ion and research on 161 enterprise­s in this industry shows that:first,customer involvemen­t is playing an important intermedia­ry role in the relation between customer evaluation and the partnershi­p performanc­e of suppliers and demanders;second,besides product quality and capacity for logistics,the impact of human relation on customer involvemen­t is inverted U shape,and price has no significan­t impact on customer involvemen­t and partnershi­p performanc­e;and third,the higher complexity of product or task will lead to more significan­t role of customer involvemen­t. The suppliers of fast moving consumer goods should,first,fully understand the degree of“relation”and develop the relation with customers within a certain scope to avoid the problem of damage on both parties’willingnes­s to cooperate and the overdue cost of relation maintenanc­e; second,they should pay more attention to fostering diversifie­d capabiliti­es,identify and satisfy customers’requiremen­t, transform enterprise­s’internal capabiliti­es to activities that can create value,and try to gain more competitiv­e advantages;third, they should improve customer involvemen­t and product complexity,explore more new markets,and cultivate more growth points.

Key words:fast moving consumer goods industry;customer evaluation;customer involvemen­t;partnershi­p performanc­e; product complexity

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