How is Moglix helping manufacturers scale up and manage their supply chain better?
The pandemic has taught everyone to go digital. The offline shift to online is now here to stay. We partnered with many infra companies and helped them keep their operations going during the lockdowns. We are bringing a 16,000+ pan India supplier base, meeting all needs of the customers and we help companies solve the two biggest problems in infra projects: cost escalations and time delays.
Our operating system enables end-to-end supply chain solutions for infrastructure companies who don’t have to raise a finger to look for anything anywhere else. We unlock cost efficiencies through bulk demand generation and process efficiencies through site aggregation. All our on-ground logistical assets and partners are digitally integrated through a cloud-based technology platform. It enables track-and-trace of the complete order to delivery process with a few clicks.
Infrastructure companies operate across multiple sites pan India. We have therefore designed our logistics network in a manner that brings together multimodal logistics, multiple logistics partners, and multiple suppliers on a single digital track and trace platform to make the supply chain seamless for customers from the infrastructure sector. We have registered 95% OTIF delivery rates through our logistics network, thus far.
What are the challenges of infra development companies in terms of pricing, quality, supplier development, site aggregation, etc?
Infrastructure companies need to secure their sourcing costs from inflationary pressures while maintaining adherence to quality standards and product specifications. Unfortunately, most infrastructure companies work with a fragmented supplier base that splits the procurement pie into fragmented orders, processes, and logistics. Therefore, site aggregation is necessary. Site aggregation leads to demand aggregation and enables economies of scale through bulk buying.
The National Infrastructure Pipeline has opened up new avenues of long-term growth for infrastructure development companies. This will usher in a bull phase for manufacturers of steel, cement, concrete, adhesives, paints, machine tools, chemicals, plants, equipment, and machinery.
How can an EPC enterprise reduce costs with Moglix indirect procurement solutions?
First, EPC enterprises must have a partner to manage all their suppliers on their behalf, monitor cost drivers like materials, logistics, processes, compliance, inventory holding, and warehousing. They need an integrated approach to value engineering to reconfigure not just individual cost buckets but also the effective landed cost of their total supply chain.
Second, EPC enterprises need to combine the benefits of lean inventory holding with just-in-time deliveries. Vendor-managed inventory solutions can enable them to realize this. Third, map project milestones against schedule agreements for sourcing and onsite delivery timelines to reduce project overrun costs. Fourth, consolidate consignment bookings to leverage full truckload capacities of logistical assets like RLC rakes, shipping containers, and cargo carriers.
India commands a mere 3% share in the global manufacturing value chain. How, do you think the country can become a more self-reliant manufacturing hub?
At a score of 3.18 out of 5, India ranks 44th on the Logistics Performance Index. There are costs of rework, redesign, and redevelopment of on-ground logistical capabilities that amount to 14% of India’s GDP.
A semi-permeable infrastructure network will make India both self-reliant and a manufacturing superpower. We are connecting India’s remote areas to the nodal points of the supply chain for domestic trade to create a robust domestic model of economic growth and insulate it from global headwinds and international transmission of business cycles through PM’s Gati Shakti Master Plan.
We are also connecting the domestic supply chain to the nodal points of the global supply chain routes for maritime trade, aviation, surface transport, and railways. This will allow Indian manufacturing to tap into opportunities for EXIM trade.
What is Moglix’s current network and presence in national and international markets and its expansion plans?
Moglix is a digitally connected supply chain ecosystem that brings together 7,00,000+ skus across 50+ categories of industrial goods, 5,00,000+ MSMEs, 16,000+ suppliers, 40+ logistics partners, 700+ large manufacturing enterprises, and 30+ of our warehouses.
The compact operating system for B2B commerce enables a plug-and-play user experience across the sourcing to financing cycle. We are collaborating with infrastructure companies on 15+ projects of the National Infrastructure Pipeline in India. We have started operations in the Middle East and are looking to scale up our one-stop procurement solutions model for infrastructure companies looking for EXIM solutions.
What investments has the company garnered so far?
Moglix has raised $470 million from marquee global investors such as Tiger Global, Alpha Wave Global, Sequoia, Accel Partners, International Finance Corporation, Harvard Management Company, and several others, and the company is now valued at $2.6 billion.
What positive impact will the Budget 2022-23 have on the infra industry?
The union budget for FY 2022-23 captures the government’s long-term blueprint to grow Indian manufacturing into a reliable partner for the global supply chain through the creation of infrastructure assets. A massive 35% growth in CAPEX allocation, especially around ports and industrial corridors, will crowd in private investment with most companies having registered record profits. This combined with an announcement on the digital system for uploading bills of contractors and suppliers will help in speedy disbursal. This will have a major positive ripple down effect for the entire ecosystem and reduce project delays.