Relationship between cost and logistic practices in small and medium enterprises: A case study of Queretaro, Mexico

Abstract

Small and medium enterprises are the main employment source throughout the world; consequently
they have a great influence on national economies. For these reasons, to study the logistics of small
and medium enterprises is important. The objective of this research is to understand the logistics
practices of small and medium enterprises in the state of Queretaro in Mexico, and also to ascertain if a
relationship between logistics practices and logistics costs exists. A total of 99 small and medium
enterprises were surveyed. The survey consisted of two parts; the first part was about logistics costs
and the second about logistics practices, which was further divided into: purchases, sales, production,
storages and transport. Data analysis was carried out using commercial statistical software. Results
show a positive relation between logistics practices and logistics costs and how logistics practices can
dramatically affect the final costs in small and medium enterprises