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Logistics and Supply Chain Related Issues Faced by Malaysian SMEs: A Case Study

Author

Listed:
  • Nik Ab Halim Nik Abdullah

    (Department of International Business, University Utara Malaysia, Sintok, Kedah, Malaysia,)

  • Sabariah Yaakub

    (Department of International Business, University Utara Malaysia, Sintok, Kedah, Malaysia,)

  • Muhammad Subhan

    (Department of International Business, University Utara Malaysia, Sintok, Kedah, Malaysia.)

Abstract

This study uses a case study approach in order to identify the logistics and supply chain related issues faced by small and medium enterprises (SMEs) in Malaysia. Previous study revealed that the causes of the failure of SMEs are both internal and external and one of the external factors identified are non-availability or deficiency in logistics and supply chain management. Based on these findings, this study is conducted in order to further focus on the logistics and supply chain related issues. Thus, the objective of this study is to identify the logistics and supply chain issues faced by SMEs in Malaysia. Data were collected through case study interviews with five SMEs. The case study interviews reveal two most common issues confronted by these firms, namely customer service and inventory management issues. These two issues are related to one another as lack of inventory will lead to SMEs inability to fulfil their customer needs. Firms themselves need to rectify these issues as they may result in loss of sales, which will eventually result in loss of customers. The finding also indicates the important role of external supply chain members such as the supplier, carrier or third-party logistics service providers as they directly influence the level of customer services provided by SMEs.

Suggested Citation

  • Nik Ab Halim Nik Abdullah & Sabariah Yaakub & Muhammad Subhan, 2016. "Logistics and Supply Chain Related Issues Faced by Malaysian SMEs: A Case Study," International Review of Management and Marketing, Econjournals, vol. 6(3), pages 432-435.
    • Handle: RePEc:eco:journ3:2016-03-3
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    References listed on IDEAS

    as
    1. Daisy Kee Mui Hung & Azura Abdullah Effendi & Lilis Suriety Abdul Talib & Noor Afiza Binti Abdul Rani, 2011. "A PRELIMINARY STUDY OF TOP SMEs IN MALAYSIA: KEY SUCCESS FACTOR VS GOVERNMENT SUPPORT PROGRAM," Journal of Global Business and Economics, Global Research Agency, vol. 2(1), pages 48-58, January.
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    More about this item

    Keywords

    Small and Medium Enterprises; Logistics; Supply Chain Management; Malaysia;
    All these keywords.

    JEL classification:

    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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