Operational Challenges and Efficiency Improvement in Cross-Border logistics for Indian SMEs

Small and Medium Enterprises (SMEs) are vital to the Indian economic growth pattern. These enterprises are crucial to employment, production, and exports. In this context, Indian SMEs are actively engaging in cross-border trade to capture emerging business opportunities in the global market. This is in response to the changing global trade environment characterized by rapid globalization and the emergence of cross-border electronic commerce. However, this is accompanied by a series of complexities that have profound implications for Indian SMEs. These complexities include intricate international shipping logistics, customs and regulatory compliance, documentation procedures, and warehousing. Indian SMEs are adversely impacted by such complexities due to their inherent financial constraints, poor technological uptake, and critical infrastructural limitations. These complexities have profoundly impacted Indian SMEs in terms of trade-related inefficiencies. These inefficiencies are characterized by highly inflated logistics costs and a lack of end-to-end supply chain visibility. Therefore, this study aims to systematically identify the complexities associated with cross-border trade that impact Indian SMEs. Additionally, this study identifies various strategies that can enhance trade efficiency. This chapter is based on a descriptive research approach that exclusively incorporates secondary research methodologies. This chapter offers a rigorous framework for improving Indian SMEs’ performance in cross-border trade. By systematically analysing industry reports, policy frameworks, and academic datasets, this chapter offers critical insights into how Indian SMEs can effectively engage in efficient and coordinated supply chain management to address existing complexities.