As India’s e-commerce industry surges toward a projected market value of $200 billion by 2026, Small and Medium Enterprises (SMEs) are increasingly turning to on-demand fulfillment to enhance efficiency, reduce costs, and scale operations. This model eliminates the need for large inventory stockpiles, making it a game-changer for SMEs navigating financial and logistical challenges in an increasingly competitive market.
Driving Cost Efficiency and Cash Flow Optimization
Inventory management remains one of the biggest cost burdens for SMEs in India’s fast-growing e-commerce sector. By shifting to an on-demand fulfillment system, businesses can significantly cut down on warehousing, storage, and logistics expenses. A 2023 Deloitte study revealed that companies adopting this approach saw a 20-30% reduction in operational costs within a year, while PwC research suggests cash flow efficiency improves by up to 40% due to the elimination of large upfront inventory purchases.
“The on-demand model has empowered SMEs to scale rapidly without financial strain. By leveraging print-on-demand and fulfillment, businesses can expand product offerings, test new markets, and enhance customer experience—all while maintaining lean operations.” — Sivaraman, Founder of Qikink
Accelerating Time-to-Market and Scalability
With India’s e-commerce sector projected to grow at 28% annually over the next five years (IBEF), SMEs need agility and scalability to stay ahead. On-demand fulfillment allows businesses to quickly introduce new products, respond to market trends, and operate across multiple locations without the risks of overstocking or unsold inventory.
Technology-Driven Supply Chain Optimization
Artificial Intelligence (AI), automation, and data analytics are transforming supply chain management. Businesses using predictive analytics and automated fulfillment solutions report a 15-20% increase in efficiency and a 10-15% reduction in costs, according to McKinsey. These technologies enable SMEs to enhance demand forecasting, streamline operations, and ensure faster, more reliable deliveries.
Supplier Partnerships: The Backbone of On-Demand Success
A strong network of reliable suppliers and third-party logistics (3PL) providers is crucial for SMEs to implement on-demand fulfillment successfully.
“Our success hinges on close relationships with partners like Qikink, ensuring seamless fulfillment and timely delivery. This allows us to focus on product innovation while reducing operational overheads.” — The Banyan Tee
Sustainability Gains: Reducing Waste and Enhancing Brand Reputation
The global fashion industry generates 92 million tons of waste annually (World Economic Forum, 2022). Overproduction is a significant issue, and the on-demand inventory model directly addresses this challenge by minimizing excess stock and lowering carbon footprints, a key factor influencing modern consumer preferences.
Challenges and Risk Mitigation
Despite its advantages, on-demand fulfillment requires robust demand forecasting, reliable supply chain partners, and agile logistics solutions to prevent stockouts and delays. However, technological advancements and access to third-party fulfillment solutions are rapidly addressing these challenges, making this model more accessible and scalable.
The Future of Indian SMEs in E-Commerce
As digital commerce expands, the on-demand fulfillment model is emerging as a key growth enabler for SMEs. By reducing costs, maximizing scalability, and ensuring sustainability, Indian SMEs are well-positioned to thrive in an evolving e-commerce landscape.
For more insights on how SMEs can leverage this model, visit Qikink.
Disclaimer: No Business Standard Journalist was involved in creation of this content