A Sustainable Approach to Boost Resilience in Fast-Moving Consumer Goods: The Critical Role of Suppliers and Transportation Capacity Explored Through PLS-SEM and NCA

Supply chain resilience (SRES) is essential for firms aiming to alleviate the impact of interruptions and maintain operational continuity and sustainability in performance. In the context of the FMCG industries of Pakistan and Saudi Arabia, characterized by intricate and vulnerable supply chains, there exists an urgent necessity for solutions that bolster resilience. This study examines the influence of critical factors resilient suppliers (RS), transportation capacity (TC), flexibility (FLEX), network complexity (NC), and supply chain dynamism (SPD) on SRES. A quantitative methodology was utilized, examining survey data from 611 participants with Partial Least Squares Structural Equation Modeling (PLS-SEM) and Necessary Condition Analysis (NCA). The results indicate that RS and TC are essential for directly improving SRES, whereas FLEX and SPD facilitate increased adaptability and reactivity. The NCA emphasizes the need to control NC to avert bottlenecks that may impede resilience. This study indicates that SRES emerges from the dynamic interplay of several elements, rather than from separate enhancements. Although NC exerts a negligible direct influence, adeptly managing complexity is crucial for reducing disruptions and inefficiencies. The results underscore that fortifying RS, TC, and FLEX in unison improves resilience and adaptation to market volatility and disturbances. This study provides various theoretical and managerial insights. A systems theory approach highlights the interdependence of supply chain components, whereas the Theory of Constraints (TOC) posits that excessive NC can hinder resilience. Management should concentrate on maximizing RS and TC until declining returns are evident, thereafter redirecting efforts towards improving FLEX and minimizing NC. Furthermore, optimizing processes and facilitating swift decision-making are essential for maintaining resilience.