Assessing the Factors Affecting the Effective Implementation of Supply Chain Management (SCM) In Food Manufacturing Small And Medium Enterprsises (SMEs) In Dar Es Salaam

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Assessing the Factors Affecting the Effective Implementation of Supply Chain Management (SCM) In Food Manufacturing Small And Medium Enterprsises (SMEs) In Dar Es Salaam

ABSTRACT:- Supply chain management (SCM) involves various activities that deal with transforming raw materials into finished products. SCM focuses on maximising value to the customer through providing quality materials at a lower price. Although SCM has been in existence for over 80 years, it was mainly associated with Large Enterprises (LEs) while SMEs were ignored. Recently, however, SCM has become popular among SMEs due to the benefits it offers such as decreased lead times, improvement in customer responsiveness, increased productivity, sales and firm profitability. Despite SCM popularity, there is a shortage of literature, especially in the food manufacturing sector in Tanzania. Previous researchers mainly focused on SCM of raw agricultural products. Furthermore, the literature on SME and SCM in Tanzania remains scarce.
The main purpose of this research was to assess the factors affecting the implementation of SCM in food manufacturing SMEs in Dar es Salaam Tanzania. The study adopted a qualitative design; 13 semi-structured interviews were held with SCM experts. The findings reveal that SCM implementation within these firms needs development. The factors that limit effective SCM implementation in Tanzania are low knowledge concerning supply chain(SC), poor management, poor technologies and poor SSR. The study recommends SMEs to improve their relationship with suppliers. Also, SMEs have to invest in the latest technologies to reduce lead times, maximise productivity, and become agile. Support from the government in the form of training and financial aid is also imperative for SMEs to improve SCM implementation.

KEYWORDS:- Implementation, Food processing, SCM, SMEs, Tanzania.

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