The Role of Supply Chain Management in Enchancing the Competiveness of Local Products

Abstract

This study aims to examine the role of supply chain management in enhancing the competitiveness of local products by using a qualitative approach and a case study of a micro, small, and medium enterprise (MSME) in Indonesia. The main focus of the research is how supply chain management strategies—from raw material procurement, production, and distribution, to partnerships—can influence the success of local products in competing in both domestic and international markets. Data were collected through in-depth interviews, direct observation, and documentation involving business actors and related stakeholders. Data analysis was conducted using a descriptive-qualitative method, referring to theories of supply chain management and competitiveness. The results show that optimally implemented supply chain management has a significant impact on improving the competitiveness of local products, especially in the MSME sector. The findings indicate that operational efficiency, improved product quality, quick market adaptability, and strong strategic partnerships are key components derived from effective supply chain management. However, the study also finds that MSMEs continue to face several challenges, such as limitations in technology, funding, human resources, and risk management capabilities. Therefore, strengthening supply chain management capacity among MSMEs is a crucial agenda that requires serious attention from the government, business actors, and other stakeholders to ensure sustainable growth and broader competitiveness of MSMEs.