The Role of Supply Chain Management in Creating Sme's Competitive Advatage

Supply Chain Management is a concept or mechanism to increase the total productivity of a company in the supply chain through optimization of time, location and quantity flow of materials. Both large companies and SMEs in SCM implementation are required to satisfy customers, develop products in a timely manner, spend low cost in the field of inventory and product delivery, manage the industry carefully and flexibly. Today, consumers are more critical and request products with fast delivery. SCM becomes one of the best solutions to improve productivity through inter-company effectiveness and efficiency. This study was conducted to look at the factors that influence supply chain management implementation in SMEs in creating competitiveness. SMEs demonstrate the form of cooperation in their business activities, involving parties such as workers, co-workers, suppliers, and consumers, so it is interesting to do research on how to apply the supply chain in SMEs in order to implement supply chain management, maintain the smoothness of the production process, until the delivery of SME products. Based on the results of the research, to ensure supply chain management performance reflected through the flexibility of delivery and storage cost management is achieved, managers must optimize the supply flow of raw materials. This is because supply flows have the greatest effect on the smoothness of supply chain management; further the smooth flow of supply can increase sales through the ability to provide products according to customer demand. With Supplier partnership strategy, a supplier partnership or strategic alliance model should be developed through certain forms of cooperation so as to ensure smooth movement of goods in the production process. Efforts to implement Customer Relationship, planning should be made as much as possible, in addition must be created integration between SMEs with the needs of consumers. On other side, problem solving is not centralized but must share information about marketing, sales and service. In order to compete, SMEs should increase the use of information technology. Using of information technology can solve various problems such as cost savings, speed up operation time, increase productivity, accelerate delivery of products or services to customers. Lena Ellitan | Dominicus Wahyu Pradana"The Role of Supply Chain Management in Creating Sme' Competitive Advatage" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-5 , August 2018, URL: http://www.ijtsrd.com/papers/ijtsrd15949.pdf http://www.ijtsrd.com/management/strategic-management/15949/the-role-of-supply-chain-management-in-creating-sme's-competitive-advatage/lena-ellitan