Earlier this month, when Sachin Bansal of Flipkart said the company shipped 1.3 lakh orders a day, he pointed out a problem. That is: sometimes suppliers have trouble meeting the demand. Sometimes its that they have run out of inventory. But sometimes, its just the inability to manage operations with traditional practices. The latter is a problem that needs to be solved.
Suppliers and dealers need to get organised. That’s where the new product launched by Ahmadabad based YFS India, a fulfillment and storage services company sees opportunity.
The company has launched a cloud based small business management system (SBMS) to help suppliers organise their inventory. The product is free in its beta avatar and helps suppliers manage their catalog, suppliers, purchase, inventory, customers, sales and returns.
It has already received more than 100 signups, the company claims. The plan is to stay in beta for about a year and charge a “modest” sum afterwards. “We haven’t thought about specific pricing model yet,” said Jayneel Patel, the CEO of YFS India.
The simple dashboard interface of SBMS gives you a wholesome view of the entire chain. Adding products and working on sales, purchase orders and inventory is simple as well. While there are a large number of suppliers in India there might be some friction in getting them to move to a cloud based system.
“We provide service of integration with 3rd party software and are planning to integrate with marketplaces..we are also working with Fedex on integration of shipping,” said Patel.
With many players in the game, supply chain software is not exactly a novel idea. But YFS might be able to play on its strength of existing customers and hope for more traction in a market where smaller suppliers and businesses need to get organised.
According to a Gartner report published in May, worldwide supply chain management software market grew 7.1% to $8.3 bn in 2012. SAP, Oracle, JDA Software, Ariba and other big players dominate the market and work mostly with large suppliers.
Smaller players however find large software implementations cost prohibitive. In India, SBMS will compete with companies like venture backed Unicommerce, which provide similar solutions.
If you are into e-commerce, give SBMS a spin.