ESSAY 1

JOHN CARLOS M. CRITICA, MSIEM

2022

Despite having 99% of the total number of businesses in the Philippines, most MSMEs or the
Micro, Small, and Medium Enterprise fail to upgrade or survive for more than five years. Because of this
unfavorable situation of our local businesses, I decided to research on their operations. In particular,
with their supply chain management (SCM). I focus the research on industrial manufacturers at
Meycauayan Bulacan that can fall under MSMEs. Some of which produces junctions for batteries,
motorcycle helmet, plastic container, jewelry polishing, metal fabrication, and others.

This research is formulated to increase the competitiveness of MSMEs in accordance with how
they manage their supply chain. The result of the research will help them achieve their potential and
develop the capabilities that will help them enter the global market.

The study assessed the SCM of the participants which was framed to the eight key SCM business
processes set by The International Journal of Logistics Management and is published through “The
Supply Chain Management Processes Vol. 12 No. 2 2001” by Lambert et al.

The findings of this research may serve as basis in formulating action plans that could be used by
the government in globalizing MSMEs. This study gave light to the query, “what is the extent of
implementation of different practices in the supply chain of selected micro, small and medium
manufacturing industries at Meycauayan, Bulacan?”

The Magna Carta for MSME or RA 9501 describes MSMEs as any business enterprise in any field
producing goods or offering services. They can be categorized as either single proprietorship,
partnership, cooperative, or corporation. The law distinguished them as a business with total assets of
less than one hundred million.

At the end of the research the author recommended the following. First, the local government
should create policies and activities that will reach more of the local entrepreneurs because most of the
micro businesses participated in the survey have no knowledge on different programs of the
government. Second, it is found out based on the interview that these local entrepreneurs are hesitant
to coordinate with outside personnel because they are afraid to jeopardize their business by disclosing
information. This mindset can be changed by a culture of active collaboration among different
institutions and the MSMEs. DTI and BSME should spearhead the creation of culture of strong
relationship within the local manufacturers. This will enable them to view each other not just as
competitor but as a group elevating the economy of the nation. Third, the primary target of the local
government should be to change the mindset of the entrepreneurs by mandatorily setting their vision
higher and creating systematic management of their business process. Fourth, MSMEs should give
priority in upgrading their product and innovating their management because these will set as their
stepping stone in transforming their business into large enterprise. Fifth, standards, benchmarks, and
key performance index for the local manufacturers should be established to help them track the
performance of their business, because it is found out that local enterprise rarely monitors nor measure
their performance. Sixth, future studies on the extent of implementation of the supply chain practices of
small business should be done with fewer and simpler questionnaires with more respondents to better
validate this study. An interview-type study is highly recommendable.