FedEx Ship More, Save More, and FedEx International Connect Plus Service (FICP) logistics solutions offer optimal logistics efficiency to MSMEs.
SINGAPORE, Aug. 2, 2022 /PRNewswire/ -- Micro, small, and medium enterprises' (MSMEs) contributions to the economy and exports have steadily increased over the last few years due to technological advances, government policies, and increasing levels of entrepreneurship across Asia-Pacific (APAC). MSMEs contribute an impressive amount ($15 trillion in 2021) to APAC's gross domestic product (GDP), and about 20% to 30% of this contribution goes to the manufacturing GDP. In the Association of Southeast Asian Nations (ASEAN), Indonesian MSMEs contribute the largest percentage (61%) to their country's GDP. In South Asia, India's 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 about 170 million. They outnumber large enterprises and, therefore, employ a significant portion of their countries' working population. In APAC, exports from MSMEs accounted for approximately $896 billion in 2020.
MSMEs contribute significantly to the exports of APAC countries, ranging from 15% to 49% of the total exports. As commerce became smarter and more connected, MSMEs turned to electronic commerce (eCommerce) to access a more extensive network and a larger regional and international consumer base. MSMEs significantly contribute to their GDP, making them a driving force behind developing APAC markets. Countries incentivize and support MSMEs to solidify and expand their businesses within and beyond the region, and MSMEs in APAC with the need to access international markets challenged their expansion. With the COVID-19 pandemic changing market dynamics, however, the upsurge of eCommerce resolved the issue. MSME businesses require digitalization as they grow rapidly.
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"MSME suppliers experienced an increase in customer base locally and internationally during the pandemic due to the boom in eCommerce and mobile commerce. MSMEs in APAC will increase focus on export opportunities and trade barriers will diminish among countries to create high intra-regional trade growth as regional integration stems from free trade agreements (FTAs). Adoption of technological trends boosted last-mile operations and created new customer expectations," explained Janesh Janardhanan, Practice Area Leader - Advisory, Supply Chain & Logistics, Asia Pacific, at Frost & Sullivan.
To take advantage of smarter connected commerce and thrive in this market, MSMEs must:
"Digital platforms will help MSMEs recover and increase their business in the post-COVID-19 era. With the shift in consumer behavior and sharp rise in online shopping, cross-border purchases will gain prominence between 2022 and 2025," said Salil Chari, Senior Vice President of Marketing & Customer Experience, FedEx Express AMEA (Asia Pacific, Middle East, and 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 navigating diverse shipping regulations and customs in different countries, to improve customer experience and support business growth. Through solutions like FICP, FedEx helps facilitate and nourish cross-border trade so MSMEs can expand their reach at a greater value."
Digital tools improve efficiency of logistics operations to help MSMEs gain a competitive advantage, with optimized efficiency, productivity, and flexibility to their customers through smart connected commerce. FedEx customizes the location and timeline of deliveries to extend delivery flexibility to customers, supporting the development of MSMEs. Some benefits of smarter digitalized logistics solutions include:
To learn more about how digitalization is powering smarter connected commerce, watch Frost & Sullivan's latest Analyst Insight Video, Ensuring Smarter Connected Commerce, by clicking here.
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About FedEx Express
FedEx Express is one of the world's largest express transportation companies, providing fast and reliable delivery to more than 220 countries and territories. FedEx Express uses a global air-and-ground network to speed delivery of time-sensitive shipments, by a definite time and date.
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