Enterprise e-commerce rides quick commerce wave, but credit challenges remain
Unicorn Moglix, which supplies industrial vehicles and equipment, offers more than 10,000 stock holding units (SKU) the next day a few months after the release of faster delivery. This is the founder and general manager Rahul Garg, unlike the timeline 96 hours before August 2024. All of the firm’s 5,000 -month -old orders are fulfilled the next day.
Bengaluru -centered staple and vegetable supplier Udaan also sends more orders in 24 hours in the last few months and Rented Stores and Horeca (hotels, restaurants, catering) businesses. “Supply chain intelligence and operational execution -oriented investments, rapidly ensuring that we are balanced with sustainability and scale efficiency.” He said.
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Flipkart’s wholesale marketplace has invested significantly in the delivery capabilities of the same day and the next day in recent months, and more than 6,000 products have reached customers faster. “The movement for faster delivery was directed by a combination of developing customer expectations and changing industrial dynamics. [business-to-business] Segment, customers demanded more and more faster supply cycles to respond to inventory holding and respond to market demand faster. ” Mint.
It has become very important for faster delivery, strengthening the loyalty of supply chain companies and keeping up with increasing competition in the market ecosystem. Faster deliveries compress the supply cycle and trigger billing earlier, which accelerates cash flow along the supply chain.
According to the estimates of Bessemer Venture Partners, online first and technology inter -business market places are expected to represent a market opportunity of $ 200 billion from $ 2030 billion by 2030 to 2030.
According to Madur Singhal, the executive partner (consumer and internet) at the global consulting firm Praxis Alliance, “faster delivery means that B2B customers can keep lower stocks at the end of lower stocks. This will resemble how they revolutionize them in the automobile industry in more time.”
Faster deliveries help companies respond more efficiently to changing market demands and minimize the loss to a reasonable extent.
It is an inventory management system that was led by Toyota in the 1970s and based on the aim of eliminating waste due to excessive production and reducing storage costs. Globally, it is said that supply chain management is simplified for large automobile manufacturers.
Some categories rapidly lend themselves better than others.
According to Flipkart Toptan’s Ayilavarapu, high demand, fast-moving categories, personal care and general products-general products, where the inventory turnover and fulfillment infrastructure are stronger.
Garg from Moglix, high -frequency industrial consumables, KKD (personal protective equipment) and MRO (maintenance, repair and operations) items are also suitable for fast delivery, he added.
Unlike rapid trade in consumer companies, faster deliveries in B2B do not harm a firm’s profit, as they are naturally equipped to address complexities, including higher costs and volumes. “Moglix has absorbed a 1-2% increase in the cost of fulfilling to maintain customer pricing. It helps to optimize several arms costs – Hiplocal delivery, because we are working on a 100% pre -paid model of our RTOs (Return to origin), because it helps to overcome the loan risk, and at the same time it is not over 5% of Garg.
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However, they will have to keep the costs and costs at costs lower to store materials of companies closer to customer clusters, store collective process orders on a wider customer set, and keep solid and standardized product masters and costs under control.
Companies like Moglix are eager to explore deliveries within minutes, subject to strong demand and sustainable unit economy. “Moglix plans to scaze deliveries between more geography and products.
Credit Difficulties
Faster delivery provides convenience and value, while corporate customers see the feature as a mixed bag. A pride -centered grocery retailer, which works with a big B2B initiative, said shorter delivery timelines lead to shorter credit reimbursement cycles, which makes it difficult to meet the obligations. This person said, “In some categories such as general products, our credit cycle fell from 30 days to 14 days. The products were sold faster in the festival, but at other times, he said.
Another business owner interested in industrial equipment, said he was indifferent to faster deliveries and would prefer stable repayment times. “The requirements in our business remain more or less stable throughout the year.
However, companies are trying to be careful. “If it is done in a systematic and predictable way, faster deliveries have almost no effect on credit or repayment cycles. It is unpredictable that may disturb our customer’s working capital cycles-if we deliver faster than the customer expected, they may have purchased our stocks that have not been purchased before, and they may not have more capital, and if we are slower, they may be more slow.”
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Furthermore, Flipkart assigns credit cycles according to customer profiles and business types, not the delivery speed. The company has also brought more flexibility in credit confirmations to support faster order-description cycles. According to Ayilavarapu, “Digital loan and instant credit approvals help to ensure that there is no deterioration in satisfaction.
Garg from Moglix said that the official loan conditions remained unchanged, although the internal loan and payment policies were calibrated in compatible with the faster operation speed.
According to the Singhal of Praxis Global Alliance, companies will have to negotiate smarter agreements with customers to maintain operational balance. “Credit conditions are usually linked to billing. B2B customers should accelerate their own financial processes such as purchasing order issuances in order to receive quick delivery. B2B suppliers must be efficient in billing and have solid systems.
