The technology used in logistics or logtech helps SMEs to make inventory more efficient, improve savings and extend their sales.
If you are an SME, you are part of 99.8 percent of micro, small or medium-sized enterprises in the country, according to an economic survey carried out by Inegi in 2019.
You are offering a product that even multinational companies do not produce. They can have pronounced sizes matching bras; A set of bathroom or kitchen utensils made from recycled plastic; Perhaps a candy or coffee maker, unique in its taste and presentation.
You want the world to know, so you start pages on Facebook, Instagram and TikTok. People ask about your merchandise; Attracts them.
You have everything to conquer the market, but you lack the capital to inventory, store and ship your products.
There are various businesses that an SME can turn to to digitize its logistics process.
Francisco Landa de Bernardi, General Director Ship dogsA shipping management company is recommended to rely on marketplaces like Shopify, Wix or Woocomerce that have the ability to sync with management tools (like the one they offer) that allow for automated inventory and guides.
Third parties to fulfill
Nicholas Meneses, Vice-President Ingresos de MelonOther models that work for an SME are fulfillment (compliance) and micro-fulfillment, it says.
In fulfillment, the SME leaves the storage, inventory, selection, packaging and shipping of the products in the hands of a third party.
It doesn’t matter if the company has early or moderate digitization, as orders are fulfilled from various channels such as the market or social networks such as Facebook and Instagram.
Micro-fulfillment, on the other hand, is a variation of fulfillment in which warehousing shifts, i.e., instead of keeping items in a distribution center, they are located in smaller warehouses near high-density areas to speed up delivery times. .
Who can an SME connect with to use fulfillment? In Mexico, companies like Melonn, Amazon and 99minutos offer it, while startups like Cubbo and eDarkstore offer fulfillment and micro-fulfillment.
On the other hand, mid-sized companies looking to have a global presence may turn to ‘fourth-party logistics’, or 4PL, solutions.
Ilan Ebelbaum, general director of Mailboxes in Mexico, promises that the logistics sector can be digitized by employing these specialized intermediaries who manage the supply chain from start to finish.
Various companies in the country like Mexcentrics, DB Schenker and Seva Logistics have this business model.
Break the digital ceiling
Now that we know the importance of digitizing its logistics area for an SME, we offer a guide to help those who have not yet started on the road to automation.
- The first thing to do is review the activity. A non-digitalized SME needs to be aware of variables such as customer service and product shipping quality in its field.
- Second, an e-commerce platform requires investment in logistics technology such as inventory, warehousing, and transportation.
- To digitize the inventory area, you can use software that solves the problems of distribution centers with management systems, warehouse processes managed and an organized platform.
- When it comes to storage, the most sustainable option for SMEs is micro warehouses. A micro warehouse streamlines operations as products are distributed to surrounding cities or municipalities. This service benefits last mile delivery operations useful during seasons like hot sale, summer sale, back to school, peon fin or end of year.
- If shipping to remote locations requires transportation, the option of prepaid parcel guides is an alternative. These companies facilitate liaising with parcel companies like Estafeta to organize the collection and take it to its destination.
Home delivery is one of the main business services because it is something that very few people can afford and add to their articles, so it is important to look for solutions that support the user and entrepreneur in general. Francisco Landa de Bernardi, General Director and Founding Partner of Envoysperos
Through service outsourcing, SMEs can reduce operational and logistics costs because the provider can compare prices and services from different providers and thus find the most competitive rates. Ilan Ebelbaum is general director of Mailboxes Etc. in Mexico.