Supply Chain Strategy in 2024: New-age Solutions in B2B and D2C

While innovations in this industry have been mainly attributed to E-commerce giants, the incremental development of contract logistics and logistics tech start-ups has opened up the scope of novel business models. Precedence Research values the global logistics market size at USD 7.98 trillion in 2022 and expects it to grow with a CAGR of 10.7% from 2023 to 2030.[i] This mammoth of a market is bound to step into a new era soon. Y Combinator funding of 85 logistics start-ups is evidence for this.[ii]

The orchestration of such services and tech can potentially eliminate the need for multi-tier procurement and distribution channels.

In 2024, many manufacturing processes hav been turned into turnkey operations with IOT-based automation. And the focus of factory owners have shifted to scale across multiple regions and develop additional product-lines. Having a distributor that can sell your products to a nation-wide network of retailers can surely help with the first challenge.

A Kenya-based start-up, Duhqa, has implemented a similar model as a service where they connect manufacturers to 11,000+ ready-to-buy vetted retailers, monitor the performance of the brand, and handle the last-mile logistics to increase reach[iii].

B2B Logistics

When going by the D2C route or combined retailer–d2C route, fulfilment services become essential for reducing shipping time and overheads. While Duhqa provides marketing services as well, others depend on the client to generate demand.

Flexport provides Amazon FBA-like fulfilment service where you are not restricted to selling on Amazon but on any platform, and anywhere in the world. Available for both B2B Wholesale[iv] and D2C[v] services, it provides its full suite of services in a pay-as-you-go pricing that reduces the barrier to entry and enhances scalability. It has operations in 89 nations currently.

Indian players, Delhivery and Shiprocket, provide similar services for Indian enterprises. Both have traditional logistics as well as end-to-end supply chain solutions at B2B[vi], D2C[vii], and Hyperlocal[viii] levels. Shiprocket RocketFuel and ShiprocketX[ix] is export an export-oriented solution giving similar services internationally, with added features like LaunchX that help market products to a vast number of countries.

Special Goods

While these players might provide insurance coverage for high-value goods[x], restriction strict apply to the type of good. One such type is Jewellery, where Sequel Logistics provides logistics for Diamonds and Precious Jewellery with armoured transportation[xi] to clients like CaratLane - A Tanishq Partnership and Titan Company Limited.

Blue Dart and A.P. Moller - Maersk[xii] can similarly handle end-to-end cold storage logistics.

Procurement

Logistics is only one of the pain points of an organisation, the other is procurement. Vendor selection, price negotiation, and product assortment can now be outsourced.

Genpact[xiii] offers procurement as a service that can help contribute to ESG goals and Point One International, Ltd.[xiv] provides an end-to-end procurement process. Infosys BPM is a Leader in this segment providing access to an extensive network of vendors and suppliers.

Mitigate Payment Risks with Escrow

Escrow is essentially a third party that handles payments for a buyer and seller. The goal is to ensure that buyers get the right goods and services and that the seller is paid the right amount in a timely fashion.

Escrow.com is a leading provider that can handle both goods and contracted services that could be relevant for agencies and freelancers. PayPal offers escrow-like services integrated into its payment platform as buyer protection[xv] and Fraud Protection[xvi] while Alibaba Group brands its escrow as an added service called Trade assurance[xvii]

Vouch and Castler are two Indian players in this segment, and both of them provide API integration to suit the newer business models.

Castler's Escrow Service Workflow Snippet

Conclusion

The landscape of supply-chain solutions has improved drastically in the past decade. A combination of services like Shiprocket and Castler can solve the challenges of selling to the demand being generated overseas. Such was the case with one of my connects for Adiflow Consulting, who is a gym equipment manufacturer in the United States that has a large volume of enquiries coming from overseas but is unable to fulfil them.

If you have managed to read till here then I have a completely free warm lead for you. If you think you can solve the problem of my connection, comment on this article.

Bibliography

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[i] (“Logistics Market Size to be Worth Around USD 18.23 Trillion By 2030,” n.d.)

[ii] (“Logistics Startups funded by Y Combinator (YC) 2024,” n.d.)

[iii] (“Manufacturers,” n.d.)

[iv] (“Flexport Wholesale Fulfillment,” n.d.)

[v] (“Revolution | Flexport,” n.d.)

[vi] (“delhivery-website-2023,” n.d.)

[vii] (“Best Shipping Platform for Ecommerce Businesses in India,” n.d.)

[viii] (“Hyperlocal Delivery of Grocery, Pharma, and Food in India,” n.d.)

[ix] (“Shiprocket X - Cross-Border Shipping for eCommerce Businesses,” n.d.)

[x] (“Secure Your High Value Shipments Against Damage and Theft,” n.d.)

[xi] (“Sequel Global,” n.d.)

[xii] (“Cold Chain Logistics,” n.d.)

[xiii] (“Sourcing and Procurement Services | Genpact,” n.d.)

[xiv] (“Procurement Services,” n.d.)

[xv] (“Buyer Protection - PayPal India,” n.d.)

[xvi] (“Manage Risk | Fraud Protection | PayPal IN,” n.d.)

[xvii] (“Trade Assurance,” n.d.)