Micro, small, and medium enterprises (MSMEs) play a vital role in India’s economic growth. MSMEs operating in the scrap management sector encounter two main concerns about the transportation cost and scheduling of vehicles. To solve these issues, MSMEs are trying to adopt emerging technologies such as automatic scrap storage, inventory control, and retrieval systems. However, MSMEs are reluctant to implement these technologies due to their pre-assumption of high adoption costs and expected benefits. The present study focused on the effective IoT implementation in vehicle loading to reduce transportation costs and trips in MSMEs. The case study of the scrap managing company has been considered to show the benefits of IoT implementation in MSMEs. The simulation was performed using FlexSim, and the results have confirmed that the IoT implementation can improve vehicle loading by 38% and reduce transportation costs by 38.6%. The outcomes highlight the benefits of IoT deployment in MSMEs