Optimizing SMEs Inventory: A Data-Driven Framework to Address Key Challenges in the Egyptian SMEs

Inventory management is a critical aspect of business operations, presenting unique challenges for small and medium-sized enterprises (SMEs). This paper presents an empirical study on the challenges SMEs face in inventory optimization and management within the Egyptian SME sector. The study involved conducting semi-structured interviews with nine companies in Egypt, and the collected data were analyzed using content analysis tools. The results indicate that most SMEs in Egypt struggle with managing their inventory effectively due to inadequate inventory tracking systems, poor demand forecasting, and lack of access to financing. Additionally, the study highlights the importance of technology adoption and effective communication channels in overcoming these challenges. Based on these findings, this paper proposes a framework for optimizing and managing SME inventory to address the challenges facing SMEs in Egypt. The findings have significant implications for SMEs in Egypt, offering insights into the specific challenges these businesses face in inventory optimization and management.