Page 2 - Al-Rashed Newsletter Sept 19

SHIPPING WORLD
HOW TECHNOLOGY HAS SOLVED

COMPLEX LOGISTICS PROBLEMS

UNIQUE TO INDIAN SMES

SMEs are considered to be the backbone of India’s economy. Until recently, their
scope of growth was limited by their non-optimal resources and inability to reach

distant markets. The rise of e-commerce and internet penetration has widened the

geographical scope of SME’s potential markets. But any commercial transaction of
physical goods involves a physical delivery of goods for the transaction to
complete. No amount of internet penetration alone can complete a physical
transaction. This is where tech-driven logistics companies have been big enablers
for SMEs to deliver in markets hitherto out of their reach. It has created a mutually
symbiotic win-win situation for the SME and logistics players, some of whom are
small and medium level logistics service providers themselves.
Before the emergence of e-commerce, traditional logistics was all about moving
goods from manufacturing hubs to consumption centres. Internet-driven
technologies have enabled logistics industry to metamorphose to be more inclusive
and provide grassroots level delivery services with ease.

Effective solutions
Adoption of new technologies like augmented reality, advanced robotics, drones are
some cost-reducing and effective solutions that ensure the competitiveness of both
the logistics player and its client (any whether SME or MLE) and ups the satisfaction
quotient of final customers. New age cloud-based arrangements are doing away
with elaborate pen and paper formalities and processes so identified with the
traditional world of logistics, and which were procedural nightmares for smaller
entrepreneurs.

Increase in last-mile delivery operations: The rise in demand for same-day
delivery has altered the last-mile delivery services. Logistic companies are
diligently managing the pickups and last-mile delivery processes to ensure an
exceptional customer experience. SMEs that opt for tech-enabled delivery
partners can satisfy their customers by meeting the promised arrival timings,
thus, ensuring service consistency, and, also keeping a tab on the distribution
process of their goods.
Acing Reverse Logistics: Reverse logistics management is vital for SMEs to
remain competitive and to keep up with customer delight. Efficient and functional
reverse logistics is crucial for businesses to keep hold of their customers.
‘Undisrupting’ the Disruptions in Supply Chain: Countless factors cause
disruptions in the supply chain which affect the production timelines, increase
costs and upset delivery deadlines. Uncontrollable factors like natural disasters,
transportation failures and unpredictable social situations adversely impact the
supply chain most. But now it is becoming much easier for SMEs to access
broader and diverse networks of potential suppliers, hence, reducing the risk
factor in supply chains.
Customer Relationship Management: With added options of delivery,
customers can now easily mould the deliveries to meet their specific needs,
which enhance the buying experience and increases overall customer
satisfaction.

Source: https://www.financialexpress.com/industry/sme/cafe-sme/msme-logi-how-
technology-has-solved-complex-logistics-problems-unique-to-indian-smes/1716984/