Empirical investigation on internal and external supply chain risk management of small and medium enterprises SMEs with reference to manufacturing industries

Abstract

Small and Medium Enterprises (SMEs) are playing a vibrant role in the Indian economy. The globalization, rapid growth of technology and changing customer needs, accelerate Original Equipment Manufacturers (OEMs) and Tier-I companies to equip themselves and also their stake holders to face the global competition. All over the world, the manufacturing companies are competitive in terms of world best class in quality, cost and delivery in enlightening the customers. Hence the OEMs and Tier-I companies are under pressure to compete with the local and global competitors. This scenario gradually develops the hectic pressure on SMEs, that is, Tier-II and Tier-III suppliers of OEM and Tier I companies. This pressure is very high especially on auto component manufacturers who are supplying their goods to automobile giants like Ashok Leyland, Ford, Hyundai and other automobile companies located in and around Chennai, southern part of India. newlineThe Indian SMEs are struggling to satisfy their customers due to various problems faced by them in the day-to-day business activities. Hence, the researcher studied the supply chain issues/risk/uncertainties faced by SMEs from the stake holders of supply chain, that is, from suppliers to customers. In response to this, the researcher attempts to fill some of the gaps in the current research. An exhaustive literature review of Supply Chain Management newline(SCM) and Supply chain Risk Management (SCRM) practiced by the newlinemanufacturing companies in India and abroad identified different risk types or newlinefactors or construct and related items or observed variables. Under each risk newlinefactor, some items are present representing the questions (observed variables) newline newline