India has been known for its traditional offline trade. A customer’s buying decision largely depends on first-hand product experience. But in case of SMEs or B2B market, a distributor or wholesaler visits the manufacturer to check the options available before making purchases.
This leads to increase in travel time, cost and several other factors.
However, in the internet era online channel has been on the top of every Indian customer due to the extreme conveniences it offers. But same is not the case with SMEs.
Listed below are some of the reasons why distribution channels are inefficient for SMEs in India.
Reluctant nature of manufactures and distributors to let go the traditional process and adapt the change. Lack of professional service for warehousing. Incompetent supply chain and logistics has been one of the major problems in India. It is estimated that the infrastructure costs 10 to 15X higher than the developed countries like US & China. Ultimately, it’s a burden for the end users and affects greatly affects the sale.
The Efficient Solution
To start with, these manufacturers and merchants need to deploy digital solutions to make the system more efficient and seamless.
So, far they were planning according to their hunch, but now there is a need to have data-based planning, as numbers play a key role in making things right for your business. Although, there is not much that people in the supply chain can do about it, but having a logical plan well in advance helps save a lot of time. Keeping a track over stock and inventories with the help of software will greatly help manage your warehouse.
Thus, there is a need of complete data transparency to manage inventories better and plan production cycle. This will help bring down the cost of production and distribution and perhaps then manufacturers will enjoy top-line sales. There is a need for b2b wholesale distribution software that connects the entire supply chain and promotes seamless trade in their network.