The Role of Supply Chain Management Practices on the Performance of Smallandmedium Enterprises: a Case Study of Selected Enterprises in Katwe Business Center

Abstract

The study was to examine the role of supply chain management on the performance of small and medium enterprises in Uganda: a case study of Katwe business centre. The objectives were; to find out the relationship between inventory management and the performance of small and medium enterprises in Katwe, to establish the relationship between transportation and the performance of small and medium enterprises in Katwe and to determine the relationship between distribution management and the performance of small and medium enterprises in Katwe. The study population was 65 where a sample size of 56 was selected for the study. Out of these, 48 responded making a response rate of (85.7%).

Data was collected using the questionnaire and documentary review. The findings revealed that transportation management, inventory management and distribution management were significantly associated with the productivity of SMES. The findings indicated that SMEs in Katwe had practiced transportation management at a rate of 69.7%, and practiced inventory management at a rate of 32.5% and lastly distribution management that stood at a rate of 45%.

The study recommends that enterprises need to acquire their own transport vehicles to reduce the risk and costs associated with outsourcing the transportation function. The study also recommends that inventory management practices like regular stock taking, inventory budgets, should be emphasized in all enterprises.

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