The Urgent need for Digital Transformation of MSME Sector

In India we have there are about 63.05 million micro industries, 0.33 million small, and about 5,000 medium enterprises in the country and all of them catering to variety of Requirements and providing employment opportunities to Millions of people.

One of the major takeaway from the Covid Situation is India has a chance to become the alternate manufacturing destination for the World. A Refocused and Rebooted MakeInIndia Program can help create new Product developments, build new Manufacturing/Processing capabilities, develop supporting infra-structure and can help India become a viable alternative to China.

 While the MakeInIndia program takes shape, MSMEs which are the backbone of the Manufacturing Industry , they need to aggressively shift towards the Digital World. All related parties Governing Bodies, Industry bodies, the companies are still lagging behind when it comes to Digital Transformation.

What are the Major issues

1. Many companies including large and small are still dependent on manual processes , age old practices, offline mode of working, legacy systems in work  place. To improve competitiveness, to improve speed, to eliminate middle men it is time they make the leap forward towards the digital world. We need to shift from Unorganized  Sector to an  Organized Sector.
2. Most MSMEs especially in the Small and Micro sector find it difficult to market their products or capabilities to the external environment and vice versa it is difficult to know where is the supply base and their capabilities and how well they function and what kind of certifications or accreditations they have.

What is needed in terms of Digital Transformation of the MSME Sector in India

1. Customer Focused B2B Catalog /Ecommerce Marketplace of the all Manufacturers, Product Details, Pricing , Factory Setup, Quality Policy, Contact Details, Capabilities, Videos,  Photographs  and certifications and accreditation they have received.
   

2. Online Verified Ratings & Review System of the Suppliers and Manufacturers will provide clarity to the Customer while making a purchase decision.

3. Complete integration of the Supply Chain Network and digitally managing the procurement process from Supplier Selection to Last mile Delivery.

4. Adopting the latest Digital Tools & Practices across all aspects of the Business from Business Process Management, Accounting, Inventory management, Order Processing, Order  management, Order Fulfillment and Payments. Going Digital helps in eliminating waste and improving communication & enables using analytics

5. Shift from Offline to Online Procurement Process – Even larger companies are hesitating in adopting digital catalogs or digital procurement and prefer an offline sourcing process for obvious reasons. Moving Digital ensures efficiency in process and improves transparency in the process.

Benefits of adopting Digital Tools & Practices

Going Digital and Online brings customer and supplier together at one  Location, it showcases of all the Capabilities in India, Brings in Price Transparency, Brings in Process Efficiency, Improves Speed, brings in accountability, Eliminates the middle man and makes the whole process seamless and transition from an unorganized sector to Organized Sector.

To showcase the capabilities of the Small & Micro Sectors of Manufacturing to the whole world and improving their overall capabilities and provide them a equal opportunity.

And if we need to be the Manufacturing Alternative to China of Commodity Products – To support the Manufacturing Ecosystem,  we need a Indian version of the Alibaba to showcase the Supplier Network and A Fully Digital Approach  for making the processes efficient and provide seamless experience.

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