This research aimed to evaluate the effect of improvement in the logistic issues on the service quality (SQ) dimensions of SMEs operating in Saudi Arabia. The investigation followed a quantitative assessment where SEM modelling was used on primary data collected using a survey questionnaire. The sample comprised of 351 employees belonging to different industries and different cities of Saudi Arabia, Jeddah, Khobar, Dammam, and Riyadh. The research identified quality logistics personnel, inventory management, and high technology cost as critical issues in Saudi SMEs. In this research, three SQ dimensions were considered, including assurance, reliability, and responsiveness. The results inferred that the overall effect of improvement in logistic issues was significant on the SQ dimensions. However, the study was limited to Saudi SMEs and three aspects of topics and three dimensions of SQ only. Considering this, the findings of the study have both practical and theoretical implications for SMEs, academicians, and practitioners.