Setbacks to IoT Implementation in the Function of FMCG Supply Chain Sustainability during COVID-19 Pandemic

Abstract

One of the basic measures of the World Health Organization (WHO) in the fight against the COVID-19 pandemic is a lockdown policy with reduced contacts and physical distance. This presents a challenge, especially for fast-moving-consumer-goods (FMCG) supply chains, which are characterized by a large number of physical contacts between employees in production, physical distribution, wholesale, and retail. One of the ways to comply with the prescribed measures with the smooth functioning of the supply chain is the complete digitalization and automation of all business activities and operations based on the application of the Internet of Things (IoT). In this regard, this paper aims to analyze the setbacks to the digitalization of business processes and the sustainability of the FMCG supply chain based on the implementation of IoT. The research has been conducted among the participants in the standardization chain in the sectors of production, physical distribution, wholesale, and retail of FMCG in the Western Balkans region during the COVID-19 pandemic. The results showed significant differences between business sectors in terms of the intensity of setbacks to successful IoT implementation. Based on the obtained results, a set of measures and incentives was proposed that the competent institutions and the management of the FMCG supply chain should apply to encourage the digitalization process. Suggestions for future research are given in the paper.