Informal Retail Digitization and Last-Mile Stockout Mitigation of FMCG Companies in Rivers State

The persistent incidence of last-mile stockouts within the informal fast-moving consumer goods retail channel of Rivers State, Nigeria, manifested through recurrent shelf shortages, lost sales, and sluggish restocking, constitutes a structural constraint on firm competitiveness and consumer welfare. This study examined the relationship between informal retail digitization and last-mile stockout mitigation of FMCG companies in Rivers State, with informal retail digitization operationalised through B2B app procurement and real-time inventory tracking, and last-mile stockout mitigation operationalised through stockout frequency reduction and replenishment cycle velocity. Anchored on the Expectancy Disconfirmation Theory and the General Systems Theory, the study adopted a cross-sectional explanatory survey design. Primary data were obtained through a structured questionnaire administered to FMCG distributors in Rivers State, of which 210 copies were valid and usable, and the four hypotheses were tested at the 0.05 level of significance using Partial Least Squares-Structural Equation Modelling via SmartPLS. The measurement model satisfied all reliability and validity thresholds. The structural results revealed that B2B app procurement had a significant positive relationship with replenishment cycle velocity but a non-significant relationship with stockout frequency reduction, whereas real-time inventory tracking had a strong significant positive relationship with stockout frequency reduction but a non-significant relationship with replenishment cycle velocity. The study concludes that the two digital capabilities operate through distinct, non-substitutable pathways, with procurement digitization governing the speed of replenishment and real-time tracking governing the availability of stock. It recommends that FMCG firms deploy both capabilities in an integrated manner, coupling digital procurement with real-time visibility, automated reordering, and responsive last-mile logistics, to achieve comprehensive last-mile stockout mitigation across the informal retail channel of Rivers State.