Financial implication of Inventory Wastage on the performance of Fast-Moving Consumer Goods (FMCG) Industry in Nigeria

Abstract

This study explores the financial impact of inventory waste on the operational performance of Fast-Moving Consumer Goods (FMCG) companies in Nigeria, focusing on three firms: Dangote Sugar Plc, Guinness Nigeria Plc, and Dansa Foods. A correlational descriptive survey method was employed, targeting 276 experienced, full-time employees involved in inventory-related functions across procurement, sales, production, and quality control departments. Data were gathered through an online questionnaire and analyzed using descriptive statistics, including frequencies, percentages, and pie charts. The findings reveal that inventory waste significantly influences all examined performance indicators, with over 50% of respondents acknowledging its effect across variables. Correlation analysis indicated a moderate negative relationship between inventory waste and company performance (r = 0.613, p = 0.015). The study concludes that inventory waste poses a considerable threat to the sustainability of FMCG businesses and recommends that firms implement effective strategies to minimize waste and safeguard long-term performance.