Industry 4.0 Technologies and Operational Performance of Fast Moving Consumer Goods Manufacturers in Kenya: a Case Study of Unilever Kenya and L’oreal East Africa.

Abstract

The purpose of the study was to investigate the impact of Industry 4.0 technologies and applications on FMCGs manufacturers in Kenya, with specific reference to L’Oréal East Africa and Unilever. The two companies were selected for the study because they are among the largest FMCGs manufacturers in Kenya, thus the size of their operations is almost equal. Therefore, the study was conducted through a case-study design. Data was collected using an interview guide and the information interpreted through descriptive statistics. The study established that Industry 4.0 technologies improve operational performance in various ways. Types of Industry 4.0 in the organizations are autonomous robots, big data and analytics, augmented reality, cloud computing, and operations. The industry 4.0 technologies help FMCGs to predict demand, understand consumer behavioral patterns, minimize errors and enhance flexibility for effective decision making. The adoption of these technologies improve operational performance by positively impacting product quality, delivery lead-time, volume flexibility, delivery dependability, production lead time, and productivity levels. The study findings show that Industry 4.0 helps in enhancing operational performance in FMCGs.