SMEs and Logistics

Sertrans Blog - Logistics for SMEs

Logistics management occupies a large place in operational costs. Global competition also involves SMEs in their own gear, especially in online shopping. This means that such companies show the sensitivity they show in manufacturing primarily in logistics, and as demand increases, in storage. It is of great importance that the logistics management of small and medium-sized enterprises are at the appropriate quality, cost and conditions in material handling and storage processes.

Logistics Management in SME

It is difficult in terms of time and cost to establish transportation and storage systems suitable for supply, production and distribution structures within SMEs. The losses of each step, detailed in itself and predicted depending on time, are experienced, which may vary from company to company. For this reason, giving logistics management jobs to third party companies saves cost and time.

Scale Based Different Strategies

According to the data of the Social Security Institution in January 2020, there are approximately 2 million workplaces throughout Turkey. According to the data of the Turkish Statistical Institute, 99.7% of the total number of workplaces has less than 250 employees. In a more detailed study, it is seen that most of the SME-scale firms have between 1 and 3 employees. For this reason, it is important to create different strategies on scale when determining the road map in the logistics management of SMEs.

Logistics Management Needs of SMEs

SMEs need logistics management due to transportation distances and increasing costs. The widespread use of just-in-time supply type systems in stock tracking and control also pushes SMEs to digital technology in logistics management. In addition, the need for digital technology has increased to meet the indispensable needs of global competition such as communication with computer systems. Demands in production have reached the saturation point in many areas and consumer demands have been further elaborated. Since this situation requires SME to make a breakthrough in production, enterprises can subcontract the logistics side of the operation.

What SMEs Should Do to Grow?

In today's competitive market, SMEs must first transition to digital automation. For this, an infrastructure can be created with less cost by adhering to the number of employees and the need. There are differences in the budget allocated for technology according to the sector. In the production sector, all technology is production-based and independent of the number of employees. For this reason, the company should create a digital automation infrastructure in line with the needs of the sector in parallel with its own size. At least, it should not be overlooked that digital technologies are actively used in transactions such as telecommunications and banking services.

Sertrans Logistics always stands by SMEs with its expert support and professional solutions in logistics and stock management processes.