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13

Benefits

One of the main benefits of participation in an AEO program for an SME is the status of AEO

itself. The status comes with a reputation effect that changes the perception of potential

customers about the AEO holder SME.

Compared to larger firms, some of the benefits that seem to be more concrete for SME traders

with AEO are as follows:

Enhanced oversight of the transportation process and activities

Reduced opaqueness in organizational roles and responsibilities

Improved human resources practices such as employee hiring and laying off practices

Better intra-firm security practices

Enhanced accuracy in transportation information and accounting practices