The COVID-19 pandemic hit industries and business across the board. MSMEs, however, may have been hit the hardest on account of their low financial resilience. At the outset of the outbreak in early 2020, thousands of small businesses came to a grinding halt due to massive supply chain disruptions occasioned by the nationwide lockdown. More than anything else, this highlighted the significance of a forward looking logistics industry which could help businesses stay afloat during such a crisis.
Contributing approximately 30% of the country’s GDP and 48% of India’s exports, SMEs and MSMEs are undoubtedly the backbones of the country’s economy. Moreover, SMEs and MSMEs are integral sectors that generate employment, offer multiple opportunities for entrepreneurial development, and assist in the holistic development of society, facilitating a socio-economic transformation in the nation. However, MSMEs often have limited capital and other resources such as manpower, making it essential for businesses to run without any glitches as disruptions will take a toll on operational efficiency, resulting in potential losses. This is where logistics players come into the picture.
With the advent of technology and rapid digitization, several SMEs and MSMEs benefit from logistics players in ensuring smooth, efficient operations and expanding their services to reach remote pockets of the country. This is made possible through logistics platforms’ vast network and PAN India reach. When it comes to operational efficiency, logistics platforms act as a catalyst in facilitating the same.
For MSMEs, warehousing can often prove to be expensive given that they have limited capital and resources. Demand generally fluctuates and by offering flexible warehousing facilities, logistics platforms enable MSMEs to optimize costs. Besides, they also provide tech-powered solutions to give MSMEs an edge over competitors through best-in-class customer service.
Small and medium enterprises cannot afford to have their own logistics teams due to resource constraints. Logistics players offer end-to-end solutions comprising of a wide array of features such as warehouse management, inventory management, in-transit visibility, real-time updates, load optimization, reduction in damages, safe packaging of shipments, etc., thereby relieving MSMEs of investing additional capital in various supply chain resources.
Furthermore, as touched upon earlier, logistics platforms have a countrywide reach and offer a plethora of services even in remote locations. With such vast networks, logistics players can reach MSMEs throughout India and in turn, allow them to reach their customers without any hassle. Apart from this, one of the most important, recently introduced features, is contactless logistics.
With the pandemic leaving large-scale destruction in its wake and raising safety concerns of physical contact amongst people, contactless logistics driven by leading-edge technology has proven to be the most efficient and innovative development in the industry so far. Right from when indents are received and goods are delivered everything is done and stored digitally, reducing dependability on manpower and optimizing time and cost whilst making end-to-end operations tech-driven and more efficient.
With substantial changes in consumer behaviour, expectations, and preferences, the logistics industry has also evolved and adapted to these, setting high standards of credible shipping, warehousing, inventory management, etc. Today, logistics players are enabling SMEs and MSMEs of the country to become more efficient, reduce costs, and provide customers impeccable service delivery by leveraging technology. All in all, logistics platforms and SMEs/MSMEs working hand-in-hand will contribute to holistic socio-economic development throughout the country while ensuring that their businesses run smoothly.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house
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