Material purchases by MSMEs…
Micro, Small & Medium Enterprises (MSMEs) spend a chunk of their monthly expenses on raw materials, consumables and the like. Requirements of equipment and tools also arise regularly.
However, unlike large companies, MSMEs are not able to afford to have full-fledged purchasing setup and due to comparatively smaller requirements, neither do they get good terms from manufacturers. Due to these factors led MSMEs mainly depend on local dealers, distributors and traders who obviously add their margin to the price and whose operations are often inefficient.
What any MSME needed was a one-stop source which offered transparent and attractive pricing, financing as well as timely supplies towards their industrial purchase needs.
B2B marketplaces serve MSMEs…
MSMEs gain many advantages by transacting through online marketplaces. Product range is wide encompassing almost the entire industrial spectrum. Bulk procurement by the platforms results in lower prices which are in turn passed on to MSMEs. Prices are also lower due to absence of middlemen. The customer does not have to deal with many different suppliers but is able to buy hundreds of different products with ease.
Challenge for the marketplaces has been to find right suppliers and cost-efficient logistics network. However, they have been succeeding as a raw material and consumables procurement marketplace for MSMEs as well as a source for equipment, machinery and tools. Since industrial products are bulkier or heavier, transporting them economically and on-time is a key issue which is being addressed.