Developing the framework for coordination in supply chain of SMEs

Abstract

PurposeSupply chain management is one of the most important areas for competitiveness and growth of industries. Small and medium enterprises (SMEs) in India and other developing countries face problems in coordinating their supply chain due to lack of resources and improper directions. The purpose of this paper is to develop a framework for improving the coordination in supply chain and development of an index for coordination.Design/methodology/approachThe interpretive structural modelling (ISM) approach has been employed to develop the structural relationship among different factors of coordination and responsiveness in supply chain to take strategic decisions. This framework is also used to evaluate coordination index for an organization. It has been further illustrated with the help of a case study.FindingsIn total, 32 enablers for coordination in a supply chain have been identified based on literature review. These are further grouped into six categories such as top management commitment, organizational factors, mutual understanding, flow of information, relationship and decision making and responsiveness. It is observed that all of these factors have strong mutual linkage and top management commitment is a major driver for improving the coordination among these factors.Research limitations/implicationsAs ISM methodology is based on experts' opinion, this framework needs further validation with empirical data and detailed case studies.Originality/valueThis paper has explored major factors for coordination in supply chain. It will be of great value for SMEs in developing their strategies for coordination in supply chain. The coordination index evaluated in this paper will also help them in benchmarking their performance in terms of different attributes of supply chain.