ARTICLES

The supply chain is a critical component of any manufacturing business, and it becomes even more important for small and medium enterprises (SMEs). These types of factories often face unique challenges in managing their supply chain, which can negatively impact their productivity, profitability, and customer satisfaction. In this article, we will discuss some of the possible problems with the supply chain especially in micro and small factories.

·        Lack of visibility:

 One of the most significant challenges for SMEs is the lack of visibility into their supply chain. These factories often have limited resources and technology, which makes it difficult to track their inventory levels, supplier performance, and delivery times. This lack of visibility can result in stockouts, delays in production, and missed customer deadlines.

·        Dependence on a single supplier:

 Many SMEs rely on a single supplier for their raw materials or components. While this may initially seem like a cost-effective solution, it can be a significant risk for the factory. A disruption in the supply of raw materials from the supplier can lead to a halt in production, resulting in lost revenue and dissatisfied customers.

·        Poor supplier performance:

SMEs may not have the resources to effectively evaluate their suppliers' performance, which can result in poor quality raw materials, missed delivery times, and inconsistent pricing. These issues can lead to increased costs for the factory and lower customer satisfaction.

·        Limited transportation options:

 Some factories may have limited transportation options available to them, which can impact their ability to deliver products to customers on time.

·        Inefficient inventory management:

SMEs may struggle with inventory management, which can lead to excess inventory, stockouts, and increased costs. These factories may not have the technology or resources to effectively track their inventory levels, leading to inaccurate forecasting and ordering.