MSME or Startups – Is Logistics a constant challenge for you ? Some Key considerations !

At the growth rate between 7-7.5%  India’s GDP is at $2.5tr  and is expected to double within the next 10 years. Over 40.5mn registered and unregistered firms, including over a 1mn Private Limited firms and clutch of MSME firms are the torch bearers of this explosive growth, along with the favourable demographic dividend. MSMEs including Startups are growing at a 10% CAGR. It employs over 100mn people (40% of India’s workforce), produces over 45% of India’s industrial output, accounts for 17% of Bank lending in the country and contributes 6.5% to India’s GDP.

 Over 7000 products are manufactured by MSME’s and Startups and these needs to be transported to the end customer and often the Logistics pose a huge challenge and burden for these enterprises.

From Agricultural to E-commerce, all these firms completely rely on logistics and transportation. Logistics is a significant component of cost add-on to the final price for the discerning consumer. The hugely unstructured and fragmented logistics market and opaque counterparty risks presents a daunting challenge for MSME or startups who are trying to build their businesses up who are very concious of the costs but are let down by their limited domain knowledge in Logistics.

With proper planning these challenges could be overcome by aligning with Digital Multimodal Logistics platforms like VALUESHIPR ( which offers both domestic and International Transportation solution from Parcels to Goods to Oversized Cargo movement.

By partnering, MSME’s and startups could reduce their cost drastically, increase efficiency with increase in productivity, reliability and effectively complete its distribution, procurement, first/last mile deliveries hasslefree. Some of the key considerations are:

Clear thought-through Strategy

Since MSMEs and startups are constrained by experience in dealing with logistics providers and comparing competitive freight quote prices, it is important that they forecast and project their logistics volume for their current financial year. Thereafter they could partner with digital Logistics solutions platform like VALUESHIPR, give a sense of minimum volumes and get a feel of the overall Logistics costs. Further they could also seek measures to plan and reduce the freight cost. With good networking of the platform like ValueShipr (, there are plenty of opportunities for getting best price, better efficiency and overall visibility of the transportation.

Load – Truck / Vessel optimisation

Both the logistics team in a MSME or startup and the Logistics platform have a greater challenge of matching the demand with supply. This would involve the Asset (Truck, trailer or Vessel /aircraft) space , the lanes they operate, the optimised route and the best freight prices for decision making. Using transformative technologies incorporating IOT, algorithms and AI logistics platforms such as VALUESHIPR matches demand with supply in a smart, simple manner and provides you with the best alternatives with freight-quotes efficiently. This saves a lot of time and MSMEs get professional help in getting competitive rates as what a Large player in the market would obtain.

The Pricing (Freight Quotes)

With high emphasis on transparency and customer centricity the neutral VALUESHIPR Platform offers the best Freight Quotes whether it’s for Spot Rates, contractual Engagement or To-Pay with no hidden charges. The Platform offers Online RFQ methodology for large scale project requirement and protection against price fluctuations. It also offers Spot Rates using Machine Learning and Data Sciences augmented with real time Bid Rates from Transport partners, Freight Forwarders and Clearing agent partners on VALUESHIPR platform. All this is ably supported by a dedicated Logistics team which supports the decision making for MSMEs and Startups.  The payment terms are clear and precise and comprehensive with all possible solutions, required.

Visibility and Tracking

End to End throughput tracking using GPS- IOT framework is one of the key control aspects provided by digital platforms for discerning customers, choosing to transact. The customers can also be on top of their shipment movement with the information being conveyed at regular intervals by SMS or notifications as also real time via the Mobile APP, desktop or a Phone Call to 865501225. With the automated updates, reporting and tracking facilities provided by the VALUESHIPR application, it is very convenient for the companies to let their customers know the status of the shipment at any point of time and provide hassle free experience throughout the transportation. Apart from the technology aspect, a good customer support team is also forms the backbone to support and help at all times to ensure hasslefree transactions.

Performance metrics

There are many important metrics that MSMEs and Startups could discuss with their digital partner to measure delivery of their engagements. This could be carrier performance, vehicle placements, Freight Costs for domestic and EXIM, on-time pickup and on-time delivery, LR, BL and invoice accuracy, POD  and data availability. Ensuring that there is clear understanding in these parameters will ensure better service and efficiency.

Inventory Control Management

MSMEs and Startups often mis-calculates and stock excess inventory because they lack supply chain visibility. To effectively reduce excess inventory, you have to gain reliable information on future orders. It is important to stock-up only the products which are fast moving and at higher demand and if not this will cost huge wastage thereby increasing overall cost to the company. MSMEs and startups could get a general sense of the Logistics demand and supply in partnership with digital platforms and plan their manufacturing and dispatch schedules in the most optimal manner.

Consolidation of Shipments

Shipment Consolidation is a logistics methodology that combines two or more orders or shipments so that a larger quantity can be dispatched on the same vehicle or container to the same market region. They can combine small shipments from more than one company that need to go to the same destination.

It is important to address the consolidation issues in a shipment and proper determination of how much to consolidate and what kind of goods could be consolidated before shipping the aggregate volume. For MSMEs and startups partnering with a Logistics platform could save a lot of time and money.

ValueAdded Services

Transportation of Goods may also call for other ancillary services like Transit Insurance, Packaging, Loading or Unloading, short term warehousing and Clearing services. The ValueShipr Digital Platform has stake holders across all these requirements aggregated on the platform who can offer their services in an efficient manner at optimal costs to MSMEs and Startups.

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