Automation isn’t a corporate indulgence – it’s a survival strategy for SMEs ready to grow without chaos.
A few months ago, I met Arvind, the owner of a thriving textile export business in Thane. His company had grown rapidly, but his team was drowning in repetitive paperwork— orders, invoices, and inventory tracking were all manually managed. Every time I visited, his desk was buried under files, and he was spending more time approving purchase orders than strategising for growth. "Automation sounds great, but it's for big corporations with deep pockets," he sighed.
Halfway across the world, in North Carolina, we at PPS Consulting encountered a similar story. Lisa, who runs a midsized logistics company, was grappling with inefficiencies in dispatching and tracking shipments. Her team relied on spreadsheets, phone calls, and manual logs, leading to missed deliveries and frustrated customers. Like Arvind, she assumed automation was too complex and expensive for her business.
These aren’t isolated cases. Across industries and geographies, small and medium enterprises (SMEs) hesitate to embrace automation, thinking it's a luxury meant for large corporations. But the reality? Smart automation is the tool that allows SMEs to scale without chaos.
The Cost of “Manual Everything”
For many SMEs, the fear of automation is rooted in misconceptions –cost, complexity, and job displacement. But what they don’t often calculate is the hidden cost of staying manual:
1. Time Drain – Employees spend hours on repetitive tasks instead of focussing on value-driven work.
2.Errors and Inefficiencies – Manual processes lead to miscommunication, delays, and costly mistakes.
3.Inconsistent Growth – When businesses grow, manual methods buckle under pressure, leading to bottlenecks.
Arvind’s textile firm, for instance, lost orders due to delayed invoicing. Lisa’s logistics company had customers walk away because of shipment errors. Ironically, the very thing they feared—change—was the one thing that could save them.
Automation That Works for SMEs
What changed their perspectives? They stopped seeing automation as a replacement for people and started seeing it as a way to empower them. Unlike large-scale enterprise solutions, SME-focused automation doesn’t require multi-million-dollar investments. It’s about identifying specific pain points and applying simple, cost-effective tools.
Order Processing and Invoicing: Arvind’s company adopted a cloud-based invoicing system. It reduced billing errors, cut down processing time by 60%, and freed up his evenings for actual business planning.
Logistics and Tracking: Lisa’s firm integrated an automated shipment tracking system. Instead of calling drivers manually, customers received real-time updates. Complaints dropped, and repeat customers increased.
Customer Queries and Engagement: A small café chain in Maine (USA) I worked with set up an AI chatbot for reservations and FAQs. Within a month, customer response time improved, and staff could focus on in-store service instead of answering the same questions all day.
The Shift That Needs to Happen
The biggest shift is not technological, but mental. SMEs need to move from viewing automation as a luxury to seeing it as a necessity.
1.Start Small – Automation doesn’t mean overhauling everything overnight. Begin with one or two problem areas—invoice processing, customer enquiries, or inventory tracking.
2.Use What’s Available – Low-cost, no-code tools like Zapier, Power Automate, and AI-driven assistants allow businesses to streamline operations without hiring a tech team.
3.Focus on Efficiency, Not Job Cuts – Employees who no longer have to chase invoices or manually enter data can focus on higher-value tasks, such as customer service and strategic planning.
The Road Ahead
When I last spoke with Arvind, he laughed about how much time he had wasted avoiding automation. "I thought I was saving money by not investing in tech. Turns out, I was losing money by staying manual." Lisa shared a similar sentiment—her logistics company is now growing faster than ever, thanks to a few simple process automations.
SMEs that continue to rely on manual processes will find themselves struggling to keep up. But those who embrace automation—not as a threat but as a tool for smarter scaling—will unlock new levels of efficiency, growth, and success.
The question is no longer if SMEs should automate but how soon can they start.
(The author is Co-founder at PPS Consulting and a business operations advisor. She helps businesses across sectors and geographies improve execution through global best practices. She could be reached at rashmi@ppsconsulting.biz)
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