How are SMEs impacting the logistics industry? 

Small and micro enterprises plays an important role in boosting industries growth but their immense impact is on the logistics industry. Let's see how SMEs are impacting this industry.
  • BY Akshay Arora

    Feature Writer, BusinessEx

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  • Mar 08,2018
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  • 9 Mins Read

For a developing economy, small and micro enterprises (SMEs) sector has been considered the pillar of growth. The SMEs play an important role in terms of creating employment, increasing manufacturing and contributing to GDP. Being a vital part of the economy, SME sectors helps other sectors to grow be it manufacturing, transport, logistics or FMCG. The main purpose of the SMEs is to engage with the future generation and to promote the manufacturing community. In India, SME sector is opening newer channels for business across several sectors, especially for logistics.

Logistics act as the implementation of a complex operation, which consists of a detailed analysis. In order to meet the requirement of the customers, logistics control the flow of things between the points of origin to consumption. Logistics usually involves the integration of information flow, packaging, production and transportation.

SMEs impact in the logistics industry

SMEs are helping logistics industry to grow, as the demand for loading and transporting is increasing. SMEs have to implement operations and strategies in order to attain the achievable target. SMEs plays an important role in the Indian economy as transportation is the major problem, therefore SMEs tackle it and deal with it. It has the power and ability in bringing out the power and crafting a comprehensive solution. The logistics industry is highly fragmented and is run by the small and medium enterprise. SMEs can develop a position in logistics and can be used as a vital tool for sustenance. Experts view logistics as the other half of marketing, which usually maximizes customer satisfaction by minimizing the cost. SMEs can be an asset in terms of marketing, by putting more effort in the logistics industry. They are more agile and can, therefore, enter niches. SMEs formulate a good platform that serves better, with efficient technology in transportation. Transportation needs effective and appropriate technology. SMEs help and give a personal touch to the customers and handle the account effectively.

SMEs have an advantage in the logistics industry and are creating niches in the logistics sector. Small and Medium Sized Enterprises are creating an impact in the logistics industry and are facing unique challenges. SMEs in that case, need to be swift and offer a better service to the customers. Small and medium-sized enterprise is nimble enough to discover new technology and that too at a faster pace. As SMEs provides a personal touch and gets to know about the customers in depth, it is therefore mostly preferred as compared to the large business companies. Nowadays, logistics has emerged as an important part of a firm’s business strategy. Therefore, small and medium-sized enterprises need to be conscious of the modern day approach of logistics planning, in order to provide better service to the customer at a lower cost.


Logistics industry is a vibrant industry where small and medium enterprises plays crucial role. There are myriad business opportunities that one can look out for in this industry. In this industry, businesses just need to be well known with the modern approaches that the big firms are applying and manage their network in order to grow and prosper.

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