Moglix Founder Shares Insights with CNBC TV-18 on B2B Portals During Festive Demand
Moglix Founder Shares Insights with CNBC TV-18 on B2B Portals During Festive Demand
Moglix Founder shares his insights with CNBC TV-18 on B2B portals during festive demand. He speaks of the new consumer trends and business trends observed during the ongoing crises, and how these trends will shape the future solutions in the supply chains and procurement processes.
Rahul also highlights how more and more enterprises are now looking at tech solutions for their way of doing business, he says that biggest shift being noted is the agility in coming online from offline, showcasing the increasing demand for tech in business.
Read MoreAdd to cart: Digital Procurement for B2B is the New Normal
Add to cart: Digital Procurement for B2B is the New Normal
Digital procurement for B2B is on the cusp of a significant transformation. Supply chain disruptions through the pandemic are causing CPOs to look at B2B procurement in a new light. While the KRAs of quality, cost, and delivery continue to be relevant, there is an increasing demand for spend analysis, transparency, data, supplier reliability, and risk management. In the near future enterprises will get a more personalized customer experience similar to what individuals get from B2C e-commerce.
What is Digital Procurement for B2B?
Digital procurement for B2B migrates enterprises from ad-hoc and offline buying to a digitized source-to-pay platform. It replicates the customer experience of a B2C e-commerce marketplace.
Like a B2C e-commerce marketplace, a B2B online marketplace offers a catalog of line items spread across product categories. Users can browse through the catalog to compare suppliers, brands, and products. They can compare costs, volume discounts, expected time of arrival (ETA), and inventory availability to place orders.
However, B2B e-commerce offers several advantages, and therefore enterprises have been drawn to it for a long time now.
Reasons for Adopting Digital Procurement Before the Pandemic
The following reasons had been driving enterprises’ adoption of digital procurement before the pandemic:
- Faster Delivery: Agility is a significant challenge in enterprise procurement. B2B online marketplaces offer quicker and cheaper delivery than their offline counterparts and are an enabler of value.
- Cost Control and Compliance: Cost efficiency is a critical KPI for procurement teams. B2B e-commerce platforms enable inter-supplier comparisons and thus augment ease of spending control and compliance.
- Scale: In manufacturing, order sizes surpass the scope of a piece-meal approach and is critical to procurement officers. B2B marketplaces can fulfill large scale industrial purchase orders.
- Quality: The quality of industrial supplies determines the quality of industrial output. B2B marketplaces deploy internal quality control procedures that foster trust creation for enterprises.
Reasons for Upswing in Digital Procurement Through the Pandemic
While online shopping benefits in the B2B segment were visible long back, the pandemic has fastened the move towards digital procurement.
- Risk Management: Supply chain disruptions have been a significant challenge for enterprises. B2B marketplaces have responded with better data analytics, cloud computing, and the internet of things capabilities to augment supplier visibility.
- Reliability: B2B marketplaces with diverse and inclusive supplier ecosystems are less prone to supply chain disruptions than their offline counterparts.
- Safety: The pandemic has pushed the need for ensuring people’s health and safety. The online workflow supports collaboration across the supply chain and is safer than offline models of procurement.
Integrated Solutions: B2B procurement platforms allow enterprises to track, control, negotiate with suppliers, and report from a single platform. It will enable industrial buyers to get a B2C-like customer experience.
How Will Digital Procurement Make Life Easier for CPOs in the Future?
B2B marketplaces have seen a large scale adoption for some time now. Before the pandemic, the procurement officer’s responsibilities were those of negotiation and compliance. Beyond the pandemic, these responsibilities are likely to give way to supplier relationship building and risk management.
B2B procurement automation will soon upgrade to include artificial intelligence and machine learning capabilities. This will lead to a more personalized customer experience, share product recommendations, and set reminders to prevent inventory stock-out situations.
Podcast: Moglix Founder on growth, future plans, and more
Podcast: Moglix Founder on growth, future plans, and more
Moglix CEO & Founder, Rahul Garg, interacts with VC Circle on the company’s future plans. He said that Moglix is well-capitalized and planning for another equity fundraise before floating an initial public offering.
‘We continue to look for acquisitions where we feel there are good entrepreneurs building valuable companies and want to become part of Moglix – both in terms of synergy and their ability to scale faster.’
The company is also moving towards profitability. Rahul says that Moglix’s business never fell much below pre-pandemic levels. It has added a new packaging vertical and strengthened its core business. In the last three months, Moglix’s business has been above pre-crisis levels.
Read MoreVendor Consolidation Vs. Diversification: What is the Best Supply Chain Strategy?
Vendor Consolidation Vs. Diversification: What is the Best Supply Chain Strategy?
The pandemic brings the focus back on the classic debate: vendor consolidation or vendor diversification? Which of the two is the right supply chain management strategy. If your sourcing managers are searching for an answer to the question, we have got you covered. The truth is that your supply chain’s digital readiness can make all the difference to the answer.
What is Vendor Consolidation and What are its Benefits?
Vendor consolidation is a strategy to rightsize the existing supplier base and make it more cost-efficient, quality-centric, and stable. A vendor consolidation strategy will require you to map the value and category of procurement against each supplier and procure more industrial supplies from a chosen few suppliers. You can now reduce the number of vendors and reap the following benefits:
- Reduced Purchase Costs: When you purchase higher volumes of industrial supplies from handpicked suppliers, you will have higher bargaining power and ask for discounted prices. You can also explore the option of annual rate contracts to seek effective insulation against price increases.
- Reduced Process Costs: Once you reduce the number of suppliers, you will reduce the number of purchase orders and invoices. You will reduce the turnaround time for placing orders by integrating more line items in each order. You will reduce your process costs.
- Reduced Mismatches in Supplies: One of the hurdles of a large supplier base is many supplier codes, material codes, and supplier catalogs. Vendor consolidation allows your sourcing managers to work with fewer supplier codes, material codes, and catalogs. You will reduce the scope of mismatches between items that you order and those that you receive.
- Improved Supplier Relationships: When you increase your purchase orders’ value, suppliers will undoubtedly accord greater attention to your requirements. You can look forward to stable and reliable supplier relationships over the long term.
What is Vendor Diversification and What are its Benefits?
A vendor diversification strategy will require you to spread out your supplier base and work with many suppliers. Following are the benefits of vendor diversification:
- Opens Multiple Channels of Sourcing: Vendor diversification opens up multiple sourcing channels for your enterprise. It spreads out the procurement risks across a large number of suppliers and reduces your dependence on each supplier.
- Promotes Innovation and New Product Development: Vendor diversification augments innovation and new product development. You can engage with multiple suppliers, browse through their offerings, and select the one that fulfills your requirements.
- Promotes Competition among Suppliers: One of the benefits of diversifying your vendor base is that you have greater flexibility to choose your suppliers for each purchase order. It allows you to create an environment for competitive bidding and opt for the lowest price to get a competitive advantage.
What is the Best Supply Chain Strategy?
The best strategy depends on product category, procurement processes, and technology maturity. In the long run, for large and growing businesses, vendor consolidation provides the scale with reduced costs. The pandemic experience has shown that effective supply chain risk management calls for visibility into procurement.
Digital procurement solutions allow you to leverage analytics, map supplier performance, and make purchasing decisions. You can lean on an integrated platform with an inclusive supplier ecosystem and a single catalog managed by a single point of contact. This way, you can consolidate your supplier base, re-engineer your procurement process, and de-risk your supply chain.
Embracing Self-Care During the Pandemic
Embracing Self-Care During the Pandemic
If you’ve developed productive and healthy habits during the lockdown, you might not be prepared to go back to exactly how things were before. Piyush Malviya, Senior Director – International Ops at Moglix, shares how 2020 has served as a great enabler of self-improvement, health, and wellness.
During this pandemic, Piyush saw a new and improved version of himself. The 21-day challenge that he took up, transformed his life, giving him a crystal vision of organizational tasks. And now, it has become a habit to eat clean, workout, and live an enriched life.
Read MoreThe Emergence of Contactless Customer Journey in the New Normal
The Emergence of Contactless Customer Journey in the New Normal
Jigyasa Kishore, Senior Director- Technology & Pallavi Chelluri, Director, Enterprise Marketing at Moglix Business discuss their experience with the emergence of contactless customer journey in the post-pandemic world.
As customer journey becomes contactless, transitioning from online from offline, brands are focusing on understanding the deep motivations of customers and creating experiences which fulfil the customer’s seen and unseen desires.
The pandemic has only accelerated changes in customer expectations and behaviors which were a long time coming. It is up to the brands to understand the impact of the pandemic on their customers and develop a digital first experience which provides safety, social interaction, and delight.
Read More3 Reasons Why Every Multiplant Manufacturing Business Needs a Packaging Audit
3 Reasons Why Every Multiplant Manufacturing Business Needs a Packaging Audit
If you are a manufacturer, your packaging supply chain manager is likely to list three significant packaging challenges.
- How do I reduce packaging costs?
- How do I identify and reduce the in-transit losses of my goods?
- How do I put my enterprise on track for continuous improvement?
If you face any or all of the above challenges, you are looking for a robust and periodic packaging audit program with the following benefits for your enterprise.
Explore the Cost Advantage of a Lean Supply Chain for Packaging
Optimizing the packaging inventory is a significant challenge. Holding high inventories of packaging SKUs can block your enterprise’s working capital. On the other hand, an inventory stock-out can directly affect your distribution and reduce revenue through lost sales. A packaging audit can enable you to rightsize your packaging inventory, unlock working capital, and reduce indirect costs. You can also explore EOQ levels of inventory by using artificial intelligence-enabled analytics and migrate towards a lean supply chain.
Reduce Wastage and Losses in Transit During the Supply Chain Journey
Pilferage, wear and tear, and spoilage during transit can lead to formidable losses to your enterprise. One way to reduce such wastage and losses is to re-engineer packaging as per the logistics lens. A packaging audit can enable you to map the logistical challenges across multiple modes of transportation and choose packaging solutions that provide the best fit for each stage of your supply chain journey.
Continuously Improve Through Total Quality Management in Packaging
The COVID19 pandemic has ushered in a new normal. How do you explore new avenues to stay competitive? Class C spend items like packaging cater to less than 10% of the unit costs of end products but are likely to affect more than 10X of the value of your goods if you get it wrong. A packaging audit can help you to discover the most significant opportunities to enable continuous improvement and total quality management in packaging.
Are you exploring a Packaging Audit for your Manufacturing Plant(s)? Testing and diagnosis are integral to both human and enterprise health. With a packaging audit across your plant locations, you can detect challenges early and adopt remedial measures with agility to reimagine your packaging.
If you feel that your packaging could be improved but don’t know where to start, please get in touch with us here. You can also learn more about our packaging solutions by clicking here.
NEP 2020 must focus on user experience and design thinking: Sandeep Goel
NEP 2020 must focus on user experience and design thinking: Sandeep Goel
Sandeep Goel, SVP- Tech, Moglix Business, shares his insights on the need of enabling digital transformation in the New Education Policy (NEP), not only as a learning of the ongoing crises but also to power the future human capital with the required tech skillset.
He emphasizes on how technological progress will continue to be the most significant enabler of economic growth, now and in the future, enforcing for the NEP 2020 to focus on user experience and design thinking, developing a mindset for testing and validating, and be able to develop vertical awareness to enhance the product management skills.
Read MoreMoglix CEO on Leadership in 2020 and Beyond
Moglix CEO on Leadership in 2020 and Beyond
Rahul Garg, Founder & CEO, Moglix Business talks about the changing times due to the ongoing crises. He emphasizes on the need to create better connectivity amongst teams and stakeholders in this remote world and to reimagine high-performance teams. He also speaks about how we collectively need to question the status quo and unlearn some of the old assumptions, the first step towards learning new developments is to unlearn some of the old.
Read MorePodcast E8: Now and Next in the Infrastructure Sector
Podcast E8: Now and Next in the Infrastructure Sector
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