Bhavuk Chawla
The fast-moving consumer goods industry requires efficient procurement and supply chain systems to maintain product availability, control costs, manage suppliers, and respond rapidly to changing market demand. This study evaluated the effectiveness of key performance indicators in assessing strategic procurement and supply chain performance in FMCG organisations. A quantitative explanatory design was employed by integrating cross-sectional survey responses with retrospective company performance records. Data were collected from 248 procurement, supply chain, logistics, inventory, production, quality-control, and finance professionals representing 38 FMCG firms, while 214 responses were matched with objective organisational records. Strategic procurement effectiveness was assessed through cost management, strategic sourcing, supplier relationships, process efficiency, risk and resilience, sustainability and compliance, and digital procurement. Descriptive statistics, reliability and validity tests, regression analysis, importance–performance analysis, and structural equation modelling were applied. The results showed that KPI effectiveness was the strongest predictor of supply chain effectiveness, followed by strategic sourcing, procurement-process efficiency, and cost management. Strategic procurement significantly improved supplier performance, process efficiency, and KPI effectiveness, while supplier performance and process efficiency partially mediated its relationship with overall supply chain outcomes. KPI effectiveness also strengthened the contribution of process efficiency to supply chain performance. The comparison between survey assessments and company records demonstrated strong agreement, confirming the practical relevance of the proposed KPI framework. Although cost management and strategic sourcing were comparatively well developed, implementation gaps remained in digital procurement, risk management, sustainability, compliance, and process automation. The study concludes that FMCG firms should adopt an integrated performance-measurement framework combining financial, operational, supplier-related, digital, risk, sustainability, inventory, logistics, and customer-service indicators to improve decision-making, resilience, and long-term competitiveness.