August 9, 2022

Redefining Procurement: Everything you need to know in 3 steps

Redefining Procurement: Everything you need to know in 3 steps

Supply chain management (SCM) is significant for mid-market firms as it lowers operational costs and boosts consumption growth. And procurement forms an integral part of SCM. However, the last few years taught us that supply chains are often overlooked. As per an analysis conducted by SAP, almost 50% companies were affected due to hindered procurement leading to supply chain disruptions.  

Nevertheless, indirect procurement can be a viable solution to promote effective SCM. It is now possible with Moglix Mid-Market, an e-commerce platform managing B2B procurement of MRO and several other industrial supplies. With a pursuit to bridge the gap between B2B merchants and consumers, Moglix aims to solve the following challenges: 

Primary challenges in Procurement of MRO for mid-market firms 

  • Unfair Pricing – Mid-market organizations must be cautious as they fail to enjoy economies of scale. Large companies and Original equipment manufacturers leverage economies of scale to get cost benefits. SME businesses are at a disadvantage which increases their average production costs.  
  • Hidden costs – Proper management in procurement and operations can aid mid-market firms in achieving multiple business objectives. Procurement of MRO like packaging and raw materials, capital and IT equipment, etc., can get expensive if neglected. Though initially, MRO expenses look minimal, a mismanagement can lead to inventory pile-up or even ceasing of business operations.  
  • Labor and Budget Constraints – Shortage of skilled workers and restricted budgets force directors/entrepreneurs to single-handedly manage procurement. In the wake of handling several company functions, MRO is often sidelined. It gives rise to unexpected costs due to unnecessary buying.  

But, tackling procurement is simple if you have an established supply chain network. Moglix addresses this gap by helping businesses by digitizing their procurement process and adding visibility and traceability to buy industrial supplies.  

3 Pillars of Easy Procurement 

  • Established Network – Moglix holds an intricate supply chain network spanning nearly 16,000 suppliers serving over 5,00,000 SME businesses. Its ubiquitous presence across major industrial towns in India ensures all customers are treated equally.  
  • Inventory Management Assistance – Successful inventory management is the key to a profitable business. They provide end-to-end supply chain management services for Class A/B / C products, promoting inventory optimization. Also, Moglix provides Vendor Managed Inventory(VMI) for mid-market businesses to tap the benefits of indirect procurement. It takes the load off the buyer contributing to higher company sales.  
  • Digitization – Digitization is changing the way of doing business. Customers can access their E-Catalog for buying and tracking the supply chain movements on the Moglix website or mobile app. They have merged technology with satisfaction by providing a quotation within 30 minutes and delivering MRO supplies in 48 hours.  

The implication of innovative technological tools ushers in a new era for Procurement. Contact Moglix to tap the benefits of an optimized and all-digital procurement process.