Supply chain management constraints in Tanzanian small and medium enterprises

Abstract

Supply chain management (SCM) has gained popularity around the globe due to its significance in relation to improving business performance. Although large enterprises have been able to successfully implement SCM, it is different in small and medium enterprises (SMEs) as they are faced with several constraints that hinder the effective implementation of SCM. Variables such as technological difficulties, poor coordination with the supplier's lack of government support, resources, funds, access to markets and top management support, issues in information sharing, inventory management, poor SCM knowledge and unskilled workforce all affect the SCM implementation in SMEs. These variables were measured in this study. A mixed method approach was used in this study where content analysis was employed through carrying out an extensive literature review to identify the SCM constraints. Descriptive statistics were then used to justify the relationship between SCM impediments and effective SCM implementation in Tanzanian SMEs. Frequency and percentages were computed to obtain the study results. The findings reveal that there is a significant relationship between effective SCM implementation in Tanzanian SMEs and constraints such as technological difficulties, poor coordination with suppliers, a lack of support from the top management and insufficient funds. This indicates that Tanzanian SMEs are mostly constrained by technological difficulties, poor coordination with their suppliers, a lack of support from top management and insufficient funds. The results also revealed that information sharing, inventory management, a lack of access to markets and poor SCM knowledge were insignificant constraints affecting SCM implementation in Tanzanian SMEs, thus indicating that there are no significant relationships between these constraints and SCM implementation in Tanzanian SMEs. The study recommends that support from the government in terms of financial assistance could help the SMEs to overcome the financial constraints and to invest more in recent technologies to help effectively implement SCM. Training from SME governing bodies such as the Small Industry Development Organisation (SIDO) in Tanzania could help to increase awareness of the importance of SCM. Furthermore, forming and maintaining long-term relationships with suppliers is critical for effective SCM implementation.

The Factors Affecting Supplier Relationship Management in the Food Manufacturing Small and Medium Enterprises (SMEs) in Dar es Salaam Tanzania

“…processing sector in Tanzania. The 13 informants were found to be suitable as has been suggested by previous researchers Nkwabi (2019) and Dai et al (2019). They also suggest that a minimum of 12 informants is sufficient for a researcher to reach saturation.…”

“…In Tanzania Katunzi and Zheng (2010) found that Tanzanian SMEs fail to effectively implement SRM due to the lack of trust among the partners. Nkwabi (2019) reported that poor coordination was a major factor impacting SRM in the Tanzanian SMEs. Although previous researchers have identified SRM issues in the SMEs, there is a dearth of literature in the Tanzanian context, particularly in the food processing sector.…”

“…In their study, Katunzi and Zheng (2010) reported that Tanzanian SMEs are reluctant to share information with their partners due to a lack of trust. Similarly, a review by Nkwabi (2019) revealed that SRM in the Tanzanian SMEs is weak due to the poor coordination between suppliers and their focal firms. These researchers have highlighted issues prevalent in SRM in Tanzania.…”

The influence of sustainable supply chain management practices on financial sustainability of food processing SMEs

“…When effectively enforced, CRM and SRM lead to a positive impact on firms' performance. Practices such as early buyer and supplier involvement in product development LBSJMR 21,2 help firms minimize product costs and shorten the time required for product design and development (Mkwabi, 2019;Uribe et al, 2019). Furthermore, improved relationships along the supply chain result in the timely delivery of better-quality materials at a cost-effective, which are the primary drivers of firms' profitability and financial sustainability.…”

“…Empirical evidence has identified a lack of awareness regarding the perceived benefits of SSCMPs, financial constraints in supporting SSCMPs, a lack of trust and poor coordination and support from top management as key barriers to the effective adoption of SSCMPs, especially in low- and middle-income countries (Mangla et al , 2018; Mkwabi, 2019). Türk and Çelik (2019) suggest that proper planning, top management support and commitment, a sound financial position and an innovative culture are necessary to overcome these barriers and promote the adoption of SSCMPs by SMEs.…”