At present, SMEs in Malaysia have informal organizational settings, lacking structure in business functions, and at times experience scarcity in resources compared to larger organizations. Further, SMEs tend to focus more on the overall operations and less on specific business functions such as procurement, in turn, getting into the inferiority complex trap. However, to scale SMEs, they need to overcome their related inferiority complex and allow themselves to actively engage with stakeholders in the value chain.
1. The Right team
Firstly, SME’s need to create a sustainable supply chain team with an innovative mindset. Supply chain and category management team bring value, most often in the form of savings, thus hiring experienced champions are imperative towards achieving a high level of cost savings and attaining operational excellence.
2. Leveraging on strategic sourcing platform
A strategic sourcing platform enables interconnectivity with stakeholders. This is where organizations analyze their vendor’s overall as well as past performance and to have oversight on supply chain networks. A strategic sourcing platform also enables companies to estimate the savings and identify who’s the best-performing vendor to avoid purchasing and logistical risks.
3. Streamlining the Procurement Process
Accountability and transparency are some of the key pillars for achieving operational excellence. Shifting from a traditional supply chain to an automated supply network creates room for growth, optimizes operations, and improves service while reducing costs and working capital.
SME’s can leverage efficient technology platforms with embedded best practices to enable better audit controls and risk mitigation functionality.
4. Building strategic relationships
Building a long-term, strategic relationship with the suppliers will help boost trust resulting in ease of doing business and adding confidence in the value chain process.
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