How Virtual Marketplaces Are Revolutionizing E-commerce for MSMEs
How Virtual Marketplaces Are Revolutionizing E-commerce for MSMEs
SMEs fundamentally power the Indian economy. Of course, at the top of the tower, one finds blue-chip public & private companies, tech giants, and a handful of companies that evoke envy and admiration across the globe. However, the economy, at the rural and town level and in large pockets in the cities, relies on the resiliency and resourcefulness of SMEs.
The Digital Gulf
As can be expected, these MSMEs have traditionally been family-run units that are often, if not always, skeptical of the digital revolution underpinning the new business dynamism of the modern age.
The Future of Digital Transformation in SME Supply Chain Ecosystems.
The Future of Digital Transformation in SME Supply Chain Ecosystems.
The COVID pandemic caused large-scale suffering globally but proved to be a substantial test of the resilience of several business models. It has also had a cascading effect on already marred supply chains that have been further exacerbated due to geopolitical tensions—the dearth of human capital during lockdowns enforced by the government significantly reduced supplier capacity. As a result, essential raw materials could not move up the supply chain, leaving several gaps in between, leading to crippling bottlenecks.
In India, SMEs and MSMEs became unfortunate victims, with an average decline of 11% in their business in 2021. Many SMEs were forced to give up their margins or, worse, close for months or shut down forever.
Growth path in India: Obstructions and Opportunities in SMEs
Growth path in India: Obstructions and Opportunities in SMEs
It is a fact that the MSME sector doesn’t receive the kind of limelight and attention that listed firms and multinationals draw, despite its critical role in the Indian economy. As per the MSME ministry’s FY21 figures, over 6.33 crore MSMEs dot the landscape of India. Over the years, the contribution of the MSME sector to the GDP has remained constant at an incredible 30%. However, MSMEs in India continue to operate in obscurity while persistently underperforming.
Bottlenecks to MSME growth:
- Lack of capital
- Lack of talent
- Digital Gulf
- Information deficit
Sustainable supply chain management- The New Wave in MSMEs
Sustainable supply chain management- The New Wave in MSMEs
It is no secret that we find ourselves amidst a climate crisis that demands our attention and action. With many nations committed to attaining net zero emissions by 2030, time is of the essence. It is one of the primary reasons why there is a pressing need for organizations across the globe to prioritize their ESG Goals. Net zero goals are ambitious but possible. Among other things, organizations must strive to assess and re-imagine their supply chains. According to a research report by McKinsey, the supply chain of a company offering consumer goods is the major contributor to its aggregate environmental impact. For example, 80 per cent of an organization’s greenhouse gas emissions and 90 per cent of its overall effect on the ecosystem result from run-of-the-mill supply chains.
Digitalization: Making the Metals and Mining Industry More Agile and Efficient
Digitalization: Making the Metals and Mining Industry More Agile and Efficient
The metals & mining industry forms the core of industrial development as it provides elementary raw materials for most of the downstream industries like power, steel, cement, aluminum, etc. The metals and mining industry has been dogged by several persistent issues like geological uncertainty, market volatility, operational hazards, etc. Though miners have been one of the early adopters of technological or digital advances most of those digital efforts were on improving operations and not process-oriented areas such as procurement and supply chain. As a result, even the digital leaders of the industry are relatively 30% less digitally mature as compared to their counterparts in the chemical and automotive industries.
According to a DAI survey, manual and fragmented procurement cycles are still a norm in nearly 75% of companies.
A paradigm shift in Fashion Industry is connecting the loose ends
A paradigm shift in Fashion Industry is connecting the loose ends
How unpredictable can things get in the fashion industry supply chain? In 2019 India’s fashion and apparel industry was projected to grow to $59.3 billion by 2022. And then, the COVID19 pandemic struck. Now with the end of the pandemic in sight, the Indian fashion industry has bounced back better to reach revenues worth $87.6 billion in 2022 and is estimated to grow to $102.6 billion by 2026. What explains the roller coaster ride that the Indian fashion industry supply chain is on? Outlined below are some risks and the inherent opportunities in addressing them:
Demand Diversity Across Geographies, Cultures, and Time: Fashion choices can change depending on geography, culture, and time of the year. To elaborate, people in cool climates prefer jackets, coats, gloves, scarves, earmuffs, and warm undergarments.
Moglix expands its distribution footprint with 100 % acquisition of ADI India
Moglix expands its distribution footprint with 100 % acquisition of ADI India
India’s B2B e-commerce and digital supply chain solutions pioneer, Moglix today announced the acquisition of ADI’s India distribution business to spread its arms further into industrial goods distribution. ADI’s India business represents the Indian distribution arm of ADI Global Distribution, a leading global wholesale distributor of security, AV and low-voltage products, which is part of Resideo Technologies, Inc.
Moglix has acquired ADI’s India distribution business with an aim to strengthen its product portfolio across video surveillance, access control and fire control products. Moglix will integrate all ADI India’s offerings, sales partnerships, on-ground assets and the workforce into its global supply chain ecosystem. With this acquisition, Moglix is leveraging the capital and expertise to further scale up the assortment strength, and category depth of the company’s catalogue by 2X.
“ADI India’s addition to Moglix ecosystem enables synergies through their on- ground customer touch points and distribution footprint combined with our asset-light digital-first approach and touchless supply chain processes.”,
adds Partha
Digitalization is the next frontier for product procurement
Digitalization is the next frontier for product procurement
A silent revolution is underfoot in India, apparent in India’s expanding scope of Digitalization of MSMEs. Be it a mom-and-pop store, a hole-in-the-wall shop, or a mid-sized firm that runs factories and employs hundreds of workers, more and more business entities are starting to realize that running an agile business without embracing the new digital paradigm is impossible.
The Digitalization endeavor underway in the country in varied sectors like agriculture, education, labor, logistics, energy, financial services, and many more are likely to create economic value of anywhere between $10 to $150 billion by 2025.
“Digitization for a firm should include, within its scope, numerous operations like the purchase of goods and services, vendor shortlisting, purchase agreements, inventory management, monitoring of cash cycles,”
adds Karan
Decoding Moglix’s Success and Acquisition Strategy
Decoding Moglix’s Success and Acquisition Strategy
In the recent interaction with Rahul Garg, Mint covers Industrial goods marketplace Moglix, that counts Sequoia Capital, Tiger Global and Accel Partners among its investors. The company has earmarked $100 million (Rs 814 crore) as part of its strategy to acquire up to three companies in the next 12 months.
Moglix launched in February 2021 the digital supply chain financing platform Credlix, which acquired trade financing focused fintech startup NuPhi for an undisclosed amount in November. Last year, Moglix also bought machinery marketplace Vendaxo.
“In terms of our global expansion plans, we have entered the UAE market last year and we are looking to foray into two more emerging markets. We are also looking deeper into Indian micro markets, which comprises energy, electric vehicles, hydrogen and solar verticals,”
adds Rahul Garg
Reengineering the Automotive Supply chain
Reengineering the Automotive Supply chain
In 1982, Maruti Udyog and Suzuki signed a historical joint venture which changed the landscape of the Indian automobile sector forever. Nearly four decades later, in 2019, India is set to become the 4th largest automobile market in the world. It produces about 4.5 million vehicles annually (80% passenger and 20% commercial). The industry employs more than three crore people and contributes more than 7% to the overall GDP of India.
Cut to 2022, the industry is recovering from a torrid two-year period of material shortages, flagging customer demand and underutilized production capacity due to Covid. According to SIAM, 2021 was the worst performing year for Indian automobile sales in a decade, with only 17.51 million units sold.
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