Arun Pandit Speaker at the E-Commerce Logistics Asia Virtual Summit by Global Supply Chain Council (GSCC)

arunpandit November 28, 2019 Speaker Leave a comment 1,628 Views

Arun Pandit Speaker at the E-Commerce Logistics Asia Virtual Summit by Global Supply Chain Council (GSCC)

Tier 2 and tier 3 towns and cities in various regions have traditionally been underserved by businesses due to logistical challenges and lower population densities compared to major metropolitan areas. However, recent advancements in technology and innovative supply chain strategies have unlocked immense potential in these areas, transforming them into crucial hubs for economic growth.

Role of Technology in Bridging the Gap

Technological advancements have played a pivotal role in reshaping the business landscape across tier 2 and tier 3 cities. Improved internet penetration, mobile technology, and data analytics have enabled businesses to understand and cater to the unique demands of these regions more effectively. For instance, mobile apps and online platforms have simplified shopping experiences, making it easier for consumers in smaller towns to access a wider range of products and services.

Supply Chain Strategies Tailored to Regional Needs

Successful businesses are increasingly adopting region-specific supply chain strategies to optimize operations in tier 2 and tier 3 cities. These strategies involve localizing inventory, partnering with regional logistics providers, and leveraging local distribution networks. By doing so, companies can reduce delivery times and costs while ensuring product availability tailored to local preferences.

Importance of Last-Mile Connectivity

Last-mile connectivity refers to the final step in the delivery process, from a distribution center to the end consumer. In tier 2 and tier 3 cities, improvements in last-mile connectivity through better road infrastructure, alternative delivery methods like drones or local couriers, and efficient logistics planning have significantly enhanced service levels. This has not only accelerated delivery times but also improved customer satisfaction and retention rates.

Growth Engines for E-commerce and Non-e-commerce Sectors

Tier 2 and tier 3 cities have emerged as major growth engines for both e-commerce and non-e-commerce companies alike. The expanding middle-class population, rising disposable incomes, and increasing digital literacy have fueled a surge in consumer spending in these regions. E-commerce companies have capitalized on this trend by expanding their reach and offerings, while non-e-commerce sectors such as healthcare, education, and financial services have also witnessed robust growth by catering to the specific needs of these markets.

Future Outlook and Conclusion

Looking ahead, the trend of leveraging technology and region-specific supply chain strategies to serve tier 2 and tier 3 towns and cities is expected to continue. As infrastructure continues to improve and consumer preferences evolve, businesses will need to remain agile and innovative in their approach. Collaborations between businesses, governments, and technology providers will play a crucial role in further enhancing connectivity and service capabilities in these emerging markets.

In conclusion, the session underscored how embracing technology and adopting tailored supply chain strategies are pivotal in unlocking the vast potential of tier 2 and tier 3 cities as thriving centers of economic activity. By focusing on improving last-mile connectivity and reducing turnaround times, businesses can effectively capitalize on the growing opportunities presented by these dynamic markets.

Case 1 : Reducing turnaround time by less half and increasing serviceable pin codes for a major e-commerce company in North East India leading to 4x growth.

Case 2: Using alternate channels to serve areas with less than viable load factor to operate on a dedicated operations network

Case 3 : Solving for the COD challenge in remote areas

ArunPandit
HyphenSCS

Global Supply Chain Council

https://www.elog.asia/talks/bridging-the-last-mile-divide-serving-tier-2-3-cities-and-towns/