mpact of Logistics Management in Enhancing the Performance of Small and Medium Enterprises (Islamabad)

Abstract

Logistics plays a dominant role in this vibrant business world today. The simplest way to describe supply chain management is to say that it is all about ways and means of meeting the demand for materials .That is, satisfying the customer with what he wants, when he wants, where he wants, etc .Logistics concentrates on the dynamic process related to the flow of materials and the relationship between the materials and their use at. The most widespread definition of logistics comes from the Council of Logistics Management, which says that "Logistics is that part of the supply chain process that plans, implements and controls the efficient, effective flow and storage of goods and services and related information from the point of origin to the point of consumption in order to meet customers' requirements."

In companies processes are becoming increasingly complex due to which demand for new logistical concepts are increasing in order to generate more profit and creating goodwill by enhancing the performance of the businesses. In the industrial development of a country the importance of the small and medium enterprises sector cannot be overemphasized. SMEs constitute nearly 90% of all the enterprises in Pakistan and their share in the annual GDP is 40%, approximately. Combined transport and modern technology are playing greater and greater role in enhancing the performance of these small and medium enterprises.