The Benefits of Smart Connected Commerce for MSMEs in APAC – NBCNEWS

  • Whatsapp

FedEx Ship More, Save More and FedEx International Connect Plus Service (FICP) logistics solutions provide optimal logistics efficiency for SMEs.

Read More

SINGAPORE, Aug 2, 2022 /PRNewswire/ — The contributions of micro, small and medium-sized enterprises (SMEs) to the economy and exports have steadily increased in recent years as a result of technological advances, government policies and increasing entrepreneurship in Asia-Pacific (APAC). MSMEs contribute an impressive amount ($15 trillion in 2021) to APAC’s gross domestic product (GDP), and about 20% to 30% of this contribution goes to industry’s GDP. In the Association of Southeast Asian Nations (ASEAN), Indonesian MSMEs contribute the largest percentage (61%) to their country’s GDP. In South Asia, Indias SMEs have one of the highest shares (49% in 2020) in exports. The number of MSMEs in the region is about 170 million, according to the World Bank. They outnumber the large corporations and therefore employ a significant portion of their country’s workforce. In APAC, MSME exports accounted for about $896 billion in 2020.

MSMEs contribute significantly to APAC countries’ exports ranging from 15% to 49% of total exports. As commerce became smarter and more connected, MSMEs turned to electronic commerce (e-commerce) to access a wider network and regional and international consumer base. MSMEs contribute significantly to their GDP, making them a driving force in the development of APAC markets. Countries are encouraging and supporting MSMEs to strengthen and expand their activities inside and outside the region, and MSMEs in APAC with access to international markets have challenged their expansion. However, with the COVID-19 pandemic changing market dynamics, the rise of e-commerce solved the problem. MSME companies need digitization because they are growing fast.

To download Frost & Sullivan’s free executive letter, Smarter Connected Commerce, please access here.

“MSME suppliers have experienced an increase in customer base both locally and internationally during the pandemic as a result of the boom in e-commerce and mobile commerce. MSMEs in APAC will focus more on export opportunities and trade barriers between countries will decrease to create high intra-regional trade growth as regional integration comes from free trade agreements (FTAs). The adoption of technology trends has boosted last-mile operations and raised new customer expectations,” explains Janesh JanardhananPractice Leader – Advice, Supply Chain & Logistics, Asia-PacificBee Frost & Sullivan.

To take advantage of smarter connected commerce and thrive in this market, MSMEs need to:

  • Use digital tools to expand their customer base into international markets and offer digitally advanced services to acquire and retain a customer base.
  • Partner with strong logistics companies for seamless logistics operations, resulting in greater customer satisfaction. The partnerships also minimize the risks and challenges associated with potential supply chain disruptions, enabling business continuity.
  • Choose smart business logistics solutions as e-commerce grows and the number of parcels increases.
  • Leverage technologies, such as Big Data, AI, and Internet of Things (IoT), to predict supply chain disruptions and take actions to eradicate them for a smoother logistics experience.
  • Take a technology-driven approach to logistics based on route optimization and delivery automation to enable efficient and fast shipping and delivery times to meet customer expectations and improve the customer experience.
  • Implement paperless digital commerce solutions and customs clearance solutions to improve SME logistics efficiency and competitiveness, enabling cross-border trade.

“Digital platforms will help SMBs to recover and grow their business in the post-COVID-19 era. With the shift in consumer behavior and the surge in online shopping, cross-border purchases will gain in importance between 2022 and 2025.” Salil CharicSenior Vice President Marketing & Customer Experience, FedEx Express AMEA (Asia-Pacific, Middle Eastand Africa). “Smarter, more connected logistics services – such as FedEx International Connect Plus Services (FICP) – will help address cross-border logistics challenges, including greater flexibility and control over the delivery process, and navigating diverse shipping regulations and customs in different countries, to improve customer experience and support business growth. Through solutions such as FICP, FedEx helps to facilitate and nurture cross-border trade so that SMBs can extend their reach at greater value.”

Digital tools improve the efficiency of logistics operations to help SMEs gain a competitive advantage, with optimized efficiency, productivity and flexibility for their customers through smart connected commerce. FedEx adjusts the location and timeline of deliveries to extend delivery flexibility for customers and support the development of MSMEs. Some advantages of smarter digitized logistics solutions are:

  • Improved efficiency and reduced costs associated with administrative delays, such as customs clearance and cross-border movement of freight, enabling on-time delivery of goods and no cross-border delays.
  • Fast and more accurate monitoring and forecasting of logistics delays in real time, enabling SMEs to take appropriate measures to manage risk. This prevents delays that could lead to customers canceling orders.
  • More efficient last-mile operations, making failures and errors negligible and preventing loss of business.
  • Increased trust and long-term customer relationships for SMEs thanks to the ability to track and trace goods via sensors

Watch the latest Analyst Insight video from Frost & Sullivan to learn more about how digitalization is enabling smarter connected commerce, Ensuring smarter connected commerce, by clicking here.

About Frost & Sullivan

Frost & Sullivan has been world-renowned for six decades for its role in helping investors, business leaders and governments navigate economic change and identify disruptive technologies, megatrends, new business models and companies to take action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.

About FedEx Express

FedEx Express is one of the world’s largest express shipping companies, providing fast and reliable deliveries to more than 220 countries and territories. FedEx Express uses a global air and ground network to accelerate the delivery of time-sensitive shipments, at a specified time and date.

Media contact:

Sol Curet
Corporate communication
E: [email protected]
https://www.frost.com/


The content is from PR NewsWire. DKODING Media is not responsible for the content offered or any links related to this content. DKODING Media is not responsible for the accuracy, timeliness or quality of the content.

Related posts

Leave a Reply