Challenges and opportunities of Tanzanian SMEs in adapting supply chain management

Abstract

Around the globe, Small and Medium Enterprises (SMEs) have acquired a significant and pivotal position in the entire economic development process. Over the years, this sector had played a critical role in developing Tanzanian economy through creation of employment opportunities, income generation, equitable distribution of income whence contributing towards poverty alleviation. However, this sector suffers a number of challenges in domestic and global market competition, though, varieties of opportunities in adapting supply chain management exists. In today’s context of fast changing and dynamic economy and dominance of global supply chain systems, the SMEs in Tanzania, besides facing traditional hardships in finance, they misalliance the phenomenon of supply chain management thus fails to find proper place in the domestic and global supply chain leaving TNCs and MNCs to have a greater dominance. As Tanzania’s economic policy is about-turn from socialism and self-reliance towards capitalism, SMEs are strangled in a ‘wait and see’ position as global supply chain bandwagon continue to wheel with supersonic speed leaving them fragmented and wither day after day, without participatory confidence and assistance. A particular concern of this paper is to identify challenges and opportunities for Tanzanian SMEs in adapting supply chain management. Key words: Small and Medium Enterprises (SMEs), supply chain, Supply Chain Management (SCM), competitive advantage.