Logistic & transportation

84% of MSME believe digitisation will lead to better cross-border logistics management – Survey

MSMEs logistics digitisation
  • On contrary, 57% preferred human intervention along with digitisation to resolve grievances
  • 59% businesses think that digitisation is imperative to solve logistics supply chain challenges
  • 57% of the audiences prefer human intervention, while 27% prefer end-to-end digital grievance redress mechanism
  • Live tracking of the shipment remains the most sought after value-added services followed by digital services and supply chain financing
  • 84% respondents believe that digitisation will lead to improved efficiency in supply chain management
  • 57% survey takers prefer email notifications while 43% prefer WhatsApp messages

A recent Freightwalla survey has shown that 84% of respondents believe digital will improve supply chain efficiency. The survey, published in the report “MSME Digital India 2022”, was aimed at understanding the changing digital penetration and awareness in the shipping and logistics industry among MSMEs in EXIM fraternity.

The Indian shipping industry has experienced tremendous volatility over the past couple of years, adversely influencing international trade by causing multiple problems, such as equipment shortages, shipment delays, and inefficient dealing with cargo movements. To overcome these problems, approximately 59% of respondents said that digitisation is integral to addressing the challenges in the logistics industry. 

Interestingly, as per the report, while complete digitisation in the supply chain and logistics industry was preferred by the majority of participants, in contrast, about 57% also stated that along with the digitised interface, they would also prefer some human intervention in grievance redressal. 

According to the survey findings, over 70% of MSMEs intend to ship goods using digital freight forwarding compared to 30% who prefer traditional counterparts. This survey was conducted among 440 businesses dealing in export and import from India. The surveyors included exporters, importers, and service providers.

As the global supply chain is evolving at a never-before rate with increased technological penetration and technical advances, there has been an increased need for a holistic focus on end-to-end digitisation and service integration in the industry. The findings of the report and the recent National Logistics Policy both showcase the importance of digitisation for the efficient cross-border movement of goods.

In a multicultural country like India, having a wide variety of linguistic barriers, it was surprising that only 10% of the total cohort felt the need for local language support from the service providers. The far larger number unanimously chose their comfort language of operations as English.

The report also highlighted that most businesses witnessed a significant rise in customer satisfaction followed by a growth in revenue and a reduction in costs.  Even as the world is racing back towards post-pandemic normalcy, container and equipment shortage was the most faced challenge, followed by excessive paperwork and lack of real-time tracking, as the key challenges faced by the EXIM community in the past year. 

Even after the constant efforts of the government to strengthen internet penetration and digital education to the last mile users, 32% were unaware of digital freight forwarding as a service. In comparison, 14% complained of a lack of internet access. 

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