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Simplifying Logistic for D2C MSMEs

By Darsh Jain --
Wednesday, 11 Oct, 2023

Agile Supply Chain is necessary to fulfill these ever-increasing consumer demands. For swift business operations, a robust warehousing and distribution strategy is vital. Choosing the right channel to store and distribute the goods is equally important to grow.

Two type of Logistics Methods for D2C MSMEs

Third Party Delivery- Business Partners with external Companies which handles all the logistics activities.
In-House Delivery- Business controls and supervise end to end logistics process in this method.

Factors to contemplate to curate Right In-House Logistics Method

Supporting Business Goal: To reduce the cost of logistics, distribution centers must be placed strategically to reduce the distance between the MSMEs and potential clients. It should be adaptable to different routes and look for shortcuts for quicker delivery.
Leveraging Scalable Facilities: Secondly, In order to scale up the supply chains, it is very important to choose an efficient distribution centre. Leveraging these facilities results in faster shipping delivery times and ultimately in efficient inventory management without incurring heavy costs.
Getting Warehousing and Distribution Right: Warehousing and distribution is fundamental to scaling up a MSME. Investing too much in the process can affect profit margins, and limit the capital for further growth. So, it has to be decided judiciously in consultation with experts and experienced professionals.

Inclination towards Third Party Logistics companies

Partnering with an integrated logistics provider can make it easier for businesses to scale. The owner will be able to focus on Core activities and Decision making of the enterprise, by paying small sum of fee to logistics providers. There can be different logistics partners for each domestic and international orders.

After reaching the scale, the enterprise must look for its in-house logistics solutions as at a point business needs to have control over its operations, this can be achieved by developing own distribution channel partners.

Simplifying Logistic for D2C MSMEs. Agile Supply Chain is necessary to fulfill these ever-increasing consumer demands. For swift business operations, a robust warehousing and distribution strategy is vital. Choosing the right channel to store and distribute the goods is equally important to grow.

<h3>Two type of Logistics Methods for D2C MSMEs</h3>

<ol>
 <li>Third Party Delivery- Business Partners with external Companies which handles all the logistics activities.</li>
 <li>In-House Delivery- Business controls and supervise end to end logistics process in this method.</li>
</ol>

<h3>Factors to contemplate to curate Right In-House Logistics Method</h3>

<ul>
 <li>Supporting Business Goal: To reduce the cost of logistics, distribution centers must be placed strategically to reduce the distance between the MSMEs and potential clients. It should be adaptable to different routes and look for shortcuts for quicker delivery.</li>
 <li>Leveraging Scalable Facilities: Secondly, In order to scale up the supply chains, it is very important to choose an efficient distribution centre. Leveraging these facilities results in faster shipping delivery times and ultimately in efficient inventory management without incurring heavy costs.</li>
 <li>Getting Warehousing and Distribution Right: Warehousing and distribution is fundamental to scaling up a MSME. Investing too much in the process can affect profit margins, and limit the capital for further growth. So, it has to be decided judiciously in consultation with experts and experienced professionals.</li>
</ul>

<h3>Inclination towards Third Party Logistics companies</h3>

Partnering with an integrated logistics provider can make it easier for businesses to scale. The owner will be able to focus on Core activities and Decision making of the enterprise, by paying small sum of fee to logistics providers. There can be different logistics partners for each domestic and international orders.

After reaching the scale, the enterprise must look for its in-house logistics solutions as at a point business needs to have control over its operations, this can be achieved by developing own distribution channel partners.