Logistics Diversification as a Pathway to SME Sustainability and Resilience

Small and medium-sized enterprises (SMEs) often experience significant fluctuations in revenue due to volatile demand, narrow client bases, and operational inefficiencies. This study examines logistics diversification as a strategic approach to achieving revenue stability and sustainable business performance. Using a case study of Company A, a mid-sized trading firm in Taiwan, the research investigates the feasibility and financial implications of transforming idle fleet capacity into a dedicated logistics subsidiary. The study employs a mixed methods approach, combining qualitative SWOT analysis with quantitative financial forecasting using Holt–Winters exponential smoothing, to evaluate the benefits of diversification. The results demonstrate that logistics diversification enhances asset utilization, reduces dependency on core customers, and improves profit margins. This research contributes to the literature on SME strategy and logistics management by providing a replicable model for business transformation and long-term resilience in dynamic markets.