FedEx Ship More, Save More and FedEx International Connect Plus Service (FICP) logistics solutions deliver optimal logistics efficiency to MSMEs.
SINGAPORE, August 1, 2022 /CNW/ – The contributions of micro, small, and medium-sized enterprises (MSMEs) to the economy and to exports have grown steadily over the past few years due to advances in technology, government policies, and rising levels of industry. entrepreneurship through Asia Pacific (APAC). MSMEs make an impressive contribution ($15 trillion in 2021) to the gross domestic product (GDP) of APAC, and about 20% to 30% of this contribution goes to manufacturing GDP. Within the Association of Southeast Asian Nations (ASEAN), Indonesian MSMEs contribute the highest percentage (61%) to their country’s GDP. In South Asia, india MSMEs have one of the highest shares (49% in 2020) in exports. The number of MSMEs in the region, according to the World Bank, is around 170 million. They outnumber large companies and therefore employ a significant portion of their country’s labor force. In Asia-Pacific, MSME exports accounted for approximately $896 billion in 2020.
MSMEs contribute significantly to exports from APAC countries, ranging from 15% to 49% of total exports. As commerce has become smarter and more connected, MSMEs have turned to electronic commerce (eCommerce) to access a larger network and a larger regional and international consumer base. MSMEs contribute significantly to their GDP, making them a driving force for the development of APAC markets. Countries are incentivizing and supporting MSMEs to consolidate and expand their businesses in and beyond the region, and APAC MSMEs that need access to international markets have challenged their expansion. However, with the COVID-19 pandemic changing the market dynamics, the rise of e-commerce has solved the problem. MSME businesses need digitization because they are growing rapidly.
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“MSME suppliers have seen an increase in local and international customer base during the pandemic due to the rise of e-commerce and mobile commerce. MSMEs in APAC will focus more on export opportunities and barriers will decrease between countries to create strong growth in intra-regional trade as regional integration stems from Free Trade Agreements (FTAs) The adoption of technological trends has boosted last mile operations and created new customer expectations,” explained Janesh JanardhananBusiness Line Manager – Consulting, Supply Chain & Logistics, Asia Pacificat Frost & Sullivan.
To take advantage of smarter connected commerce and thrive in this market, MSMEs need to:
Adopt digital tools to expand their customer base in international markets and provide advanced digital services to gain and retain customers.
Partner with strong logistics companies for seamless logistics operations, resulting in higher customer satisfaction. Partnerships also minimize the risks and challenges associated with potential supply chain disruptions, enabling business continuity.
Adopt smart logistics solutions as e-commerce grows and the number of packages increases.
Leverage technologies, such as big data, AI, and the Internet of Things (IoT), to predict any supply chain disruptions and take action to eradicate them for a smoother logistics experience.
Adopt a technological approach to logistics based on route optimization and delivery automation to enable efficient and timely shipping and delivery times to meet customer expectations and improve customer experience.
Implement paperless digital trade solutions and customs clearance solutions to improve logistics efficiency and competitiveness of MSMEs, enabling cross-border trade.
“Digital platforms will help MSMEs recover and grow their businesses in the post-COVID-19 era. With changing consumer behavior and the surge in online shopping, cross-border shopping will gain in importance between 2022 and 2025,” said Salil ChariSenior Vice President of Marketing and 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 more flexibility and control over the delivery process, and navigate various regulations and shipping customs in different countries, to improve the customer experience and support business growth.Through solutions like FICP, FedEx helps facilitate and nurture cross-border trade so that MSMEs can extend their reach to greater value.
Digital tools improve the efficiency of logistics operations to help MSMEs gain a competitive advantage, with optimized efficiency, productivity and flexibility for their customers through smart connected commerce. FedEx customizes delivery location and timing to extend delivery flexibility to customers, supporting the development of MSMEs. Some benefits of smarter digitized logistics solutions include:
Improved efficiency and reduced costs associated with administrative delays, such as customs clearance and cross-border movement of freight, enabling fast delivery of goods and no cross-border delays.
Rapid and more accurate monitoring and forecasting of logistics delays in real time, enabling MSMEs to take appropriate action to manage risk. This avoids delays that can cause customers to cancel orders.
More efficient last mile operations, making failures and errors negligible and avoiding lost business.
Greater trust and long-term customer relationships for MSMEs through the ability to track and trace goods via sensors
To learn more about how digitalization is fueling smarter connected commerce, watch the latest Analyst Insight video from Frost & Sullivan, Ensuring Smarter Connected Commerce, by clicking here.
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About FedEx Express
FedEx Express is one of the world’s largest express shipping companies, providing fast, reliable delivery to more than 220 countries and territories. FedEx Express uses a global air and ground network to expedite the delivery of urgent shipments at a specific time and date.
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SOURCE Frost & Sullivan
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