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Supply chain management for SME cluster

Author

Listed:
  • Rajkumar Babanrao Chadge
  • Surendra Dashrathrao Kshirsagar
  • Rakesh L. Shrivastava

Abstract

The supply chain management plays an important role in SME cluster. It creates an integrated relationship with suppliers, customers and all other stakeholders. Managing the supply chain is vital for improving the productivity and competitiveness by reducing uncertainty. It also enhances the customer satisfaction. The concept of value chain management (VCM) has become quite common in industries. Value chain is a mechanism that allows producers, processors, buyers, sellers, and consumers to add values to the products and services as they pass from one link to the next. Michael Porter popularised the concept of value chain. He analysed firms' competitiveness in a context where products are transformed adding value, step-by-step, until they finally reach the customer. Value chain approach constitutes an important concept for development of industrial cluster. This paper analyses the merits and limitations of SCM and provides broader awareness of VCM for industrial cluster.

Suggested Citation

  • Rajkumar Babanrao Chadge & Surendra Dashrathrao Kshirsagar & Rakesh L. Shrivastava, 2014. "Supply chain management for SME cluster," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 7(4), pages 407-417.
    • Handle: RePEc:ids:ijpman:v:7:y:2014:i:4:p:407-417
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