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How MSMEs can fix their supply chain challenges and accelerate recovery

Logistics for MSMEs: The supply shock that began with Covid in February 2020 and the demand shock that followed due to the global economy shut down brought to the fore vulnerabilities in businesses’ production strategies and supply chains.

Logistics for MSMEs: The cascading effect of the pandemic on the supply chain and logistics industry globally has been turbulent for small businesses. The supply shock that began with Covid in February 2020 and the demand shock that followed due to the global economy shut down brought to the fore vulnerabilities in businesses’ production strategies and supply chains. As MSMEs gradually re-establish contemporary ways to meet their supply chain goals, digitisation of the supply chain is among the most critical areas to address the vulnerabilities, according to experts at the MSME Business Conclave organised by Financial Express Online last week. 

“Only around 5 per cent of supply chain digitisation is estimated currently which is very low for India,” said Neeraj Bansal, Co-Head and COO, India Global, KPMG who moderated a panel discussion on Bridging Supply Chain Gaps for MSMEs.

The challenges to poor digitisation of supply chain by small businesses have been multiple and they largely have to do with the size and capacity of an enterprise. Digitisation and technology adoption requires scale but most small businesses don’t have the scale to justify investments in technology, according to Amar Sapra, Professor, Production & Operations Management, IIM Bangalore.