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How tech can help MSMEs to compete against larger enterprises in logistics sector



The Indian logistics sector has come a long way, with technology revolutionising and reshaping its landscape, fostering a more connected and accountable ecosystem. With the steady adoption of sophisticated tracking systems, real-time data analytics, and IoT devices, the logistics sector’s visibility and transparency has increased manifold.

The technology has also significantly helped MSMEs in sustaining growth and meeting industry demands. Prasad Sreeram, CEO & Co-Founder, COGOS, says e-commerce in India thrives through the dominance of small and medium-sized enterprises (SMEs). He also highlights the crucial need to empower them for enhanced market reach and competitiveness against online brands.

Similarly, Rajesh Gowrinath, Senior Vice President Sales, Gati, says how his company’s unwavering focus on SMEs has fuelled a significant growth in this sector. “Our distributed distribution network across India serves as a catalyst for SMEs, enabling sustainable business scaling and exponential growth. We go beyond mere logistics, acting as knowledge partners for SMEs by sharing strategic market insights. Through our end-to-end service support, we empower small business owners to expand their footprint efficiently, fostering growth from Punjab to the northeastern states,” Gowrinath adds.

Mahesh Fogla, Executive Director, Patel Integrated Logistics (PILL), explains how his firm empowered SMEs to compete against larger enterprises through strategic technological integration: “Technology becomes the equaliser, enabling SMEs to establish global connectivity for their goods, overcoming resource constraints. PILL facilitates this by providing logistics solutions that ensure just-in-time inventory, a crucial factor in reducing working capital requirements for SMEs. By leveraging technology, PILL not only enhances the competitiveness of SMEs on a global scale but also contributes to efficient inventory management, aligning with the specific needs and challenges faced by smaller enterprises.”

Logistics sector outlook
The logistics landscape in the country heavily relies on operational methods, with multiple moving parts. However, for it to compete effectively on the global stage, greater integration of technology is crucial, says Sreeram.

“Anticipating a significant surge in technological adoption by 2024, an expected increase of 20 to 30% across the logistics spectrum will be pivotal in enhancing efficiency and competitiveness,” adds Sreeram.

Gowrinath anticipates a year-over-year expansion of 20%. “With the rise of e-commerce, global trade, and our dedication to technical innovation, the logistics industry has reason to be hopeful about the future. While there may be obstacles in our way, we will continue to be adaptable and focused on providing value to our clients through robust logistical solutions,” he notes.

Fogla anticipates a highly positive outlook for the logistics sector in 2024, aligned with the overall global economic growth. “Climate change awareness is expected to drive efforts to reduce carbon emissions in the logistics industry. PILL is committed to taking all necessary steps in this regard in the coming year, in order to align with sustainability goals and contribute to a more environmentally responsible and efficient logistics landscape,” he adds.

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