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B2B e-commerce platforms reduce inventory costs by 40% for SMEs

The platforms are also offering multiple choices to SMEs to source raw material from across India and the globe

platforms inventory management services is gaining popularity among small and medium enterprises (SMEs). This has resulted in reducing inventory costs by 40 per cent for SMEs.

who would earlier procure raw material from various sources and stock it for one month to three months, are now opting for players like Power2 SME, and are offering inventory on behalf of SMEs, thereby reducing the former's inventory costs by over 40 per cent. According to SMEs, this has reduced their stock maintenance cost drastically and also supplying has become easy.

"Because of technology, new kind of traders have emerged in past few years which known as marketers. They have strong domain knowledge. are now not creating inventory as 'just in time' sourcing has increased in India," said Dinesh Agarwal, founder and chief executive officer of IndiaMART.com.

Moreover, platforms are providing multiple choices to the to source their requirement from across India and across the globe.

Agarwal said, "can get local catchment in offline procurement while in online, are offering multiple choice for to source any materials from online. It connects them with the world where gets best of their requirements."

According to companies, as the availability of information is easy, many who stock raw material for a month or three months are now storing their required goods for a week only. Moreover, online procurements is also quite cheaper then offline.

Anil Gupta, executive director of Delhi based said, "Two years back we had stored raw materials for a month which cost us something about Rs 16 crore but after sourcing materials online, we have stopped to create inventory as we get it any time. Supply becomes easy so we need not to stock it."

R Narayan, founder and chief executive officer, said, "Direct procurement from large may costlier for the as their order size is small. But as platform we sources different types of raw materials from big suppliers in a bulk and procure it from us as per their requirements. Sourcing goods from platforms is almost 5-7 per cent cheaper than open markets."

The way 'just in time' sourcing trend is increasing, platforms are also providing working capital fund and marketing support to the SMEs. ecommerce players, by offering various services are trying to tap more and more from across India.

"ecommerce platforms also assist in marketing. Moreover, we are offering easy funding for working capital to the SMEs. All this things attracting the to the platforms," said Narayan.

has close to 40,000 registered users. The company raised foreign direct investment (FDI) from Inventus Capital, and in three rounds of funding. raised Rs 42 crore in its third round of funding from its existing investors. A total of $15 million have been raised in the three rounds.

Akash Domadiya, founder chairman of tradohub.com said, "We have observed that by sourcing industrial raw material from platforms, inventory related costs of have reduced by 60 per cent."

also now comfortable with the new channel of sourcing and it has helped them to manage their cash deployment and reduction in production costs.

Siddhartha Agrawal, managing director of Surat based said, "provides raw materials on credit which helps us manage our cash deployment better. Also The production cost has been reduced due to better pricing of raw material that we buy online."

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Business Standard
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Business Standard

B2B e-commerce platforms reduce inventory costs by 40% for SMEs

The platforms are also offering multiple choices to SMEs to source raw material from across India and the globe

Vimukt Dave  |  Ahmedabad 

B2B e-commerce platforms reduce inventory costs by 40% for SMEs

platforms inventory management services is gaining popularity among small and medium enterprises (SMEs). This has resulted in reducing inventory costs by 40 per cent for SMEs.

who would earlier procure raw material from various sources and stock it for one month to three months, are now opting for players like Power2 SME, and are offering inventory on behalf of SMEs, thereby reducing the former's inventory costs by over 40 per cent. According to SMEs, this has reduced their stock maintenance cost drastically and also supplying has become easy.

"Because of technology, new kind of traders have emerged in past few years which known as marketers. They have strong domain knowledge. are now not creating inventory as 'just in time' sourcing has increased in India," said Dinesh Agarwal, founder and chief executive officer of IndiaMART.com.

Moreover, platforms are providing multiple choices to the to source their requirement from across India and across the globe.

Agarwal said, "can get local catchment in offline procurement while in online, are offering multiple choice for to source any materials from online. It connects them with the world where gets best of their requirements."

According to companies, as the availability of information is easy, many who stock raw material for a month or three months are now storing their required goods for a week only. Moreover, online procurements is also quite cheaper then offline.

Anil Gupta, executive director of Delhi based said, "Two years back we had stored raw materials for a month which cost us something about Rs 16 crore but after sourcing materials online, we have stopped to create inventory as we get it any time. Supply becomes easy so we need not to stock it."

R Narayan, founder and chief executive officer, said, "Direct procurement from large may costlier for the as their order size is small. But as platform we sources different types of raw materials from big suppliers in a bulk and procure it from us as per their requirements. Sourcing goods from platforms is almost 5-7 per cent cheaper than open markets."

The way 'just in time' sourcing trend is increasing, platforms are also providing working capital fund and marketing support to the SMEs. ecommerce players, by offering various services are trying to tap more and more from across India.

"ecommerce platforms also assist in marketing. Moreover, we are offering easy funding for working capital to the SMEs. All this things attracting the to the platforms," said Narayan.

has close to 40,000 registered users. The company raised foreign direct investment (FDI) from Inventus Capital, and in three rounds of funding. raised Rs 42 crore in its third round of funding from its existing investors. A total of $15 million have been raised in the three rounds.

Akash Domadiya, founder chairman of tradohub.com said, "We have observed that by sourcing industrial raw material from platforms, inventory related costs of have reduced by 60 per cent."

also now comfortable with the new channel of sourcing and it has helped them to manage their cash deployment and reduction in production costs.

Siddhartha Agrawal, managing director of Surat based said, "provides raw materials on credit which helps us manage our cash deployment better. Also The production cost has been reduced due to better pricing of raw material that we buy online."

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B2B e-commerce platforms reduce inventory costs by 40% for SMEs

The platforms are also offering multiple choices to SMEs to source raw material from across India and the globe

The platforms are also offering multiple choices to SMEs to source raw material from across India and the globe platforms inventory management services is gaining popularity among small and medium enterprises (SMEs). This has resulted in reducing inventory costs by 40 per cent for SMEs.

who would earlier procure raw material from various sources and stock it for one month to three months, are now opting for players like Power2 SME, and are offering inventory on behalf of SMEs, thereby reducing the former's inventory costs by over 40 per cent. According to SMEs, this has reduced their stock maintenance cost drastically and also supplying has become easy.

"Because of technology, new kind of traders have emerged in past few years which known as marketers. They have strong domain knowledge. are now not creating inventory as 'just in time' sourcing has increased in India," said Dinesh Agarwal, founder and chief executive officer of IndiaMART.com.

Moreover, platforms are providing multiple choices to the to source their requirement from across India and across the globe.

Agarwal said, "can get local catchment in offline procurement while in online, are offering multiple choice for to source any materials from online. It connects them with the world where gets best of their requirements."

According to companies, as the availability of information is easy, many who stock raw material for a month or three months are now storing their required goods for a week only. Moreover, online procurements is also quite cheaper then offline.

Anil Gupta, executive director of Delhi based said, "Two years back we had stored raw materials for a month which cost us something about Rs 16 crore but after sourcing materials online, we have stopped to create inventory as we get it any time. Supply becomes easy so we need not to stock it."

R Narayan, founder and chief executive officer, said, "Direct procurement from large may costlier for the as their order size is small. But as platform we sources different types of raw materials from big suppliers in a bulk and procure it from us as per their requirements. Sourcing goods from platforms is almost 5-7 per cent cheaper than open markets."

The way 'just in time' sourcing trend is increasing, platforms are also providing working capital fund and marketing support to the SMEs. ecommerce players, by offering various services are trying to tap more and more from across India.

"ecommerce platforms also assist in marketing. Moreover, we are offering easy funding for working capital to the SMEs. All this things attracting the to the platforms," said Narayan.

has close to 40,000 registered users. The company raised foreign direct investment (FDI) from Inventus Capital, and in three rounds of funding. raised Rs 42 crore in its third round of funding from its existing investors. A total of $15 million have been raised in the three rounds.

Akash Domadiya, founder chairman of tradohub.com said, "We have observed that by sourcing industrial raw material from platforms, inventory related costs of have reduced by 60 per cent."

also now comfortable with the new channel of sourcing and it has helped them to manage their cash deployment and reduction in production costs.

Siddhartha Agrawal, managing director of Surat based said, "provides raw materials on credit which helps us manage our cash deployment better. Also The production cost has been reduced due to better pricing of raw material that we buy online."

image
Business Standard
177 22

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