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 aboutturn 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.