The fast-moving consumer goods (FMCG) segment is the fourth largest sector in the Indian economy. The market size of FMCG in India is estimated to grow from US$ 30 billion in 2011 to US$ 74 billion in 2018.
Food products is the leading segment, accounting for 43 per cent of the overall market. Personal care (22 per cent) and fabric care (12 per cent) come next in terms of market share.
Growing awareness, easier access, and changing lifestyles have been the key growth drivers for the sector.
Enterprise Resources Planning Systems (ERP) are implemented in organizations to optimize the supply chain to improve the overall performance. Yet, it is observed that many organizations have not achieved the desired level of performance through this strategic move. Literature suggest that the implementation barriers can be a main reason for this. Hence the problem cantered in this study is to identify the success factors and challenges of ERP systems implementation in the FMCG industry in Sri Lanka. This study uses the case study approach for four companies in the FMCG industry. Focus group interviews were used to gather data and the participants of the focus group interviews were key users who had an important role during the implementation. Semi-structured interviews were conducted by an experienced interviewer using an interview guide with semi-structured questions.
Success factors included the technological know-how, high management commitment, lesser government regulations, and experience of the process re-engineering. Challenges included investment in resources, information management, changing the organization culture to the best practices of the system, lack of the user training and limitation of the proper consultancy services. Findings of the study can be used as a framework to understand the ERP implementation success factors and the potential challenges faced by organizations in the FMCG industry