Strategic Planning on Problems in Coordinating Supply Chain of Indian SMEs:A Multi Sector Study

The purpose of this paper is to study the problems faced by Indian small and medium enterprises (SMEs) while forming coordination strategies for effective supply chain management. In modern time Indian SMEs are facing open global competition which give them ample opportunities and simultaneously lot of problems. To stay competitive in this scenario, Indian SMEs have to break isolation and improve coordination in supply chain. For collecting data from Indian SMEs of different sectors, a questionnaire-based survey was conducted. In total, 159 valid responses were received. Statistical analysis of data acquired from survey is done by one sample t-test and correlation analysis. Top five problems faced by Indian SME's of auto components sector are uncertainty of customer orders/demand, over dependence on bigger supply chain partner(s), insufficient knowledge of SCM, nonavailability of right information at right time and lack of committed resources. Problems have significant negative correlation with coordination strategies of all sectors of SMEs. Major implication of finding of study are that if Indian SMEs of different sectors works strategically on problems of SCM implementation then supply chain (SC) coordination will improve. This study can be further explored by considering other aspects of strategy development such as new product development, human resource, global organizational culture; etc. Outcome of present study will be useful for SMEs of different sectors in identifying problems and framing their strategies for improving coordination in supply chain, and academia for further research in the context of changing market scenario.