Not just product delivery, logistics companies helping SMEs bring efficiency in supply chain, technology

From procurement to doorstep delivery, everything is transparent in logistics companies.

Logistics for MSMEs: The Micro, Small and Medium Entrepreneurs (MSMEs) often have limited capital and workforce that makes the work hectic for them. They have to manage the entire process with limited resources and all this requires ample time and effort. Today several MSMEs are being benefited from the logistics companies to expand their businesses in rural areas or tier-III and IV cities. Knowing the importance of Logistics companies, the government is trying to push the sector. The government is optimistic that the transport infrastructure in the country will improve with the help of government schemes such as Sagarmala, BharatMala, and UDAN. All these are helping the MSMEs in their expansion. MSMEs primarily get extremely benefited by logistics companies in the following ways.

Better Reach: Logistics companies usually have a pan India reach. They cover even the hinterlands of the country and are helpful to the MSMEs in these areas. They deliver products and services to tier-III and IV cities and help the companies flourish.

Last-mile delivery: Logistic companies pledge by the motto of last-mile delivery. Their state-of-the-art technology enables PAN India product delivery flawlessly. Most of them ensure full rural coverage where there is no proper functional connectivity through roads. The logistics companies connect well with MSMEs in the rural sectors of the country. They also have several operational warehouses which help them to fulfil their objectives.

Robust technology: Technology is indeed changing the landscape of the logistic market segment today. From procurement to doorstep delivery, everything is transparent in these logistics companies. The development of technology in the logistics sector helps trace the products from dispatch to delivery. The supply chain management system is fully tech-enabled with efficient route planning, even in remote areas which help MSMEs in delivering their orders.

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CRM solutions: Majority of the logistics companies offer tailormade channel-specific CRM (Customer Research Module) and visibility modules that are agile and customizable. The feature enables the logistics companies to track deliveries. This CRM software allows all the operations to be carried from a single platform and hence, bring uniformity and consistency in work.

E-commerce enabler: Logistics firms are moving from a traditional setup and playing other vital roles in India. Today many logistics players have come up as an e-commerce enabler in small cities. They are collaborating with Original Equipment Manufacturers (OEM), Micro Finance Institute (MFI) and their end customers and helping MSMEs. The industry has moved from being just a service provider to an end-to-end supply chain solution provider to MSMEs. 

Employment generation: Logistics companies not only deliver product across the most remote parts of India but are also responsible for employment generation. Higher paying jobs ensure a more stable income for the community as a whole, hence, better life quality. Today the number in the logistics industry has increased. The companies are also embracing and encouraging gender diversity by providing women with equal career opportunities.

MSMEs in rural areas are expanding well and helping in the growth of the country with the assistance of logistics companies. The logistics companies, on the other hand, are enjoying the market share and profits in this sector with a considerable margin. The demand for logistic companies in rural India is touted to increase manifold in future, and it is a boon to the MSMEs. It is a significant segment in the Indian industrial sector and would continue to play an essential role in the country.

(Srinivas Lingamuthu is the Co-Founder & CEO at 72 Networks. Views expressed are the author’s own.)