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The Need Of Fulfilment Centers For SMEs And MSMEs

Tech equipped fulfilment centers can mitigate the challenge, and businesses can send out shipments quickly, improve customer experience, and enhance revenue with the right warehousing solution.

In 2020, Statista recorded 63.3 million MSMEs in India. From these, 32.49 million MSMEs serve the rural area and rest in the urban domain. These businesses are a definitive marker of entrepreneurial success, an indicator of GDP (Gross Domestic Product) transformation and future economic growth.

Many of these MSMEs offer products through online and offline markets on demand. However, delivery times affect growth verticals and reduce customers satisfaction levels. Depending on the distance, any shipment from a warehouse of one city takes a minimum of 5-10 days and sometimes more to deliver to the customer based in another.

Tech equipped fulfilment centers can mitigate the challenge, and businesses can send out shipments quickly, improve customer experience, and enhance revenue with the right warehousing solution. In this competitive world, Micro, Small, and Medium Enterprises are increasingly adopting fulfilment facilities to serve their customers better. Some of the reasons driving this change are:

Customized Fulfilment Facilities

Fulfilment facilities and warehousing solutions offer customized options to brands. These customizations are implemented using smart warehousing management systems backed by advanced technology. For instance, a customized palletized outflow and inflow of orders are fully equipped with technology and machine which sorts the orders automatically. Other customizations include tailor-made packaging, bulk order sorting, refrigeration capabilities, etc.

Quick Order Deliveries

With the right warehousing solution, it is possible to create an inventory nearest to users’ locations. These fulfilment centers ensure quick deliveries and reduce shipment costs. The brands can improve profit margins and revenue per order.

Since the pandemic, the e-commerce market has experienced a massive inflow of demand. This demand comes at the cost of increasing user expectations. Now they require a seamless, hassle-free fulfilment experience. When you are stocking your inventory in a fulfilment center nearest to your customer’s location, you can deliver products quickly and at minimal costs (or no costs). Also, this improves customers experience.

Take lockdown, for example. When we were experiencing lockdown, goods movement was mainly affected. Using the local fulfilment hubs and stacked inventory would have been more accessible for MSMEs to reduce challenges, such as interstate shipments, late deliveries, etc.

Further, now there are advanced fulfilment and warehousing solutions that automate your orders and inventory management. Your shipments reach the customer in 24-48 hours, inventory is changed, and details are automatically updated. When the consignments are not delivered in time, the brands can also experience a high number of Return to Origin (RTO). These RTOs cost more and reduce the efficiency of shipment. A streamlined fulfilment facility can help deliver products quickly and return to the source optimally. The RTOs are streamlined, and their cost is also minimized.

Demand Forecasting and Cost-Effective Logistics

For MSMEs to succeed and gain a competitive edge in the industry, they need to improve user experience. More than 55% of your visitors leave the cart because of the shipping costs. When you are able to reduce shipment and RTO costs, offer 24-48 hour deliveries, the user experience improves, providing a competitive edge in the market.

Many fulfilment and warehousing solutions are also equipped with Amazon Multi-Seller Flex. It is a state-of-art offering by Amazon delivered through third-party warehousing solutions. These MSF allow sellers to create a warehouse in several regions that improve order shipments and management in Tier-II cities. Pickrr Plus Fulfilment centers across the country is another example that is designed to reduce operational costs. Here, MSMEs can get storage in the local region to serve remote areas in Tier II and Tier III cities.

Additionally, the technology being used at Pickrr’s fulfillment facilities comes with a comprehensive suite enabling demand forecasting, SKU placements replenishments, logistics operations, etc. Advanced AI-powered systems can help analyze the demand and understand the future needs of a specific product. For instance, inventory usage statistics can be extracted with past data, and demand forecasting further simplifies our replenishment, logistics movement, etc.


Owing to the recent developments and technology enablement, MSMEs understand the importance of using the nearest warehousing solutions for every region or state. Setting up a fully functional and advanced logistics center in several areas may reduce operational efficiency. Pre-designed, driven warehousing fulfilment services can offer quality infrastructures leading to improved efficiency, customer experience, and quick deliveries. Combined, these efforts lead to cost-efficient logistics and advanced MSME experience.

In times of pandemic, customers’ requirements have evolved. Today’s user utilizes online e-commerce for swift deliveries. Warehousing solutions, like Pickrr Plus Fulfilment, can drive companies to improve effectiveness and enhance user satisfaction.

Source: Business World

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