Chasing Efficiency without a Map: The Supply Chain Knowledge Crisis in Pakistani SMEs

Abstract

Small and Medium Enterprises (SMEs) play vital role in contributing the Pakistan’s economy and comprised on their share in the GDP more than 40% and engaging around 80% of workforce other than agriculture. Although SMEs are integral part of the business ecosystem, many of them still have no aligned supply chain management (SCM) at international standards to manage and perform feats of managing complex logistics and procurement puzzles. This fence-sitting on the SCM literacy curve fast represents operational inefficiencies, unnecessary costs, and a loss of competitiveness for the business in the local and global arenas. This work examines the value of describing the supply chain knowledge limitations of Pakistani SMEs in operational performance SME case studies. Using selected literature and SME case studies, the study reveals significant knowledge gaps in critical SCM areas, including inventory management, procurement, logistics alignment, and SCM technology convergence. Findings indicated the gaps in SCM training, SCM systems, and SCM business model in the value chains and business niches of the targeted sectors, like textiles, food processing, and retail, are clear. The work outlines steps to incorporate SCM training gaps, SCM systems, and support models in the value chains and business niches of the targeted sectors, like textiles, food processing, and retail, which is clear. The work outlines steps to incorporate SCM training gaps, systems, and structured support models into the SCM business model of value chains and business niches targeted to the identified sectors, e.g., textiles, food processing, and retail. For Pakistani SMEs, closing the gap in their understanding of supply chain management can help improve operational efficiency, enhance sustainability, and boost global competitiveness.