Supply Chain Optimization and Inventory Control Practices in Small and Medium Enterprises (SMEs) in Vijayapura District: An Empirical Analysis

Abstract: The research article investigates the supply chain optimization and inventory control practices of SMEs in Vijayapura District, Karnataka, India, aiming to identify the challenges and strategies employed by these enterprises to enhance operational efficiency and competitiveness; the study employs a mixed-methods approach, combining quantitative surveys and qualitative interviews with 50 SME owners and managers across various sectors, including manufacturing, retail, and services, to gather comprehensive data on their supply chain and inventory management practices; the findings reveal that while a majority of SMEs utilize basic inventory control methods, such as periodic stock checks and manual record-keeping, there is a significant lack of advanced techniques like Just-In-Time (JIT) inventory, Economic Order Quantity (EOQ), and demand forecasting models, leading to issues such as overstocking, stockouts, and increased holding costs; additionally, the research identifies several challenges faced by SMEs, including limited access to technology, inadequate skilled labor, financial constraints, and a lack of awareness regarding modern supply chain practices; the study also highlights the role of digital technologies in improving inventory management, noting that SMEs that have adopted Enterprise Resource Planning (ERP) systems and other digital tools report better inventory accuracy and reduced operational costs; based on these findings, the research recommends that SMEs in Vijayapura District invest in training programs to enhance the skills of their workforce, adopt affordable technological solutions to automate inventory processes, and collaborate with industry associations and government bodies to access resources and support for implementing best practices in supply chain management; the study concludes that addressing these challenges and adopting modern inventory control practices can significantly improve the operational efficiency and competitiveness of SMEs in the region.