The asset-light logistics model for retail has been instrumental in PriyoShop’s scalability, flexibility and customer satisfaction.
Quick Takeaway
- Do you know? We have 26 hubs to ensure day basis orders to our MSMEs. This helps us ensure that our retailers get the most cost-efficient stock-up experience.
- For any online marketplace platform, logistics is a huge expense. But at PriyoShop, we worked our way around the apps that help retailers order online at any time across Bangladesh.
- Our asset-light business model allows us to leverage our logistics brands’ advanced transportation solutions, thereby improving our scalability, flexibility and customer satisfaction.
- Our tech-first approach further optimizes our logistics brands’ core competencies and by extension, our business model. For example, we use targeted apps for our brands to have the seamless interaction of our respective networks, and developed systems to optimize their distribution.
As online shopping is booming after the pandemic, PriyoShop tried to empower the MSMEs just after the pandemic as they were under the water trying to revive their small business.
Do you know the number of MSMEs Priyoshop has?
~103,000k+.
That makes us the single largest contributor to Bangladesh’s fast-growing MSME ecosystem. We ship a significant number of orders per day, and we do it by channeling our hubs very precisely.
Why?
To ensure that our sellers have the most cost-efficient logistic experience. Building our green hub infrastructure and running a captive logistics workforce drives up efficiency significantly in the supply chain, ultimately translating into higher fulfillment for the branded products for MSMEs. This green hub choice has been a key lever both economically and environmentally.
Why do we invest in hubs and the overall supply chain?
To be a structured distribution channel, we needed to invent some unique approaches with deep capabilities to cover the length and breadth of the country
So far, Bangladeshi B2B platforms have only been able to achieve an average capacity utilization. Plus, logistics—a combination of first-mile, middle-mile, and last-mile costs—is a huge expense.
Our decision was to work on these areas which would lead us to increased supply chain efficiencies across the ecosystem, resulting in higher transportation utilization, more fuel saved per ton, far fewer carbon emissions, and a significant decline in the average cost per shipment.
Meanwhile, thanks to the sheer volume of orders placed by PriyoShop users, we not only receive favorable pricing opportunities with key brand players, but we are also able to create supply chain efficiencies and enjoy providing best-in-class delivery times and service quality.
As high-class brands like ACI, Unilever, RB and Savlon might have cracked consumer behavior and first-mile nodes from customers’ perspective yet they were struggling to reach the rural consumers due to a lack of code of logistics. But we have cracked the code of logistics not just in Dhaka cities, but also in remote regions such as Sylhet, Dinajpur and Kailakoir. This translates to our retailers having access to all branded products at the lowest possible costs.
Essentially, our asset-light business model, allows us to leverage our advanced transportation solutions, thereby improving our scalability, flexibility, and customer satisfaction. Here’s how our tech-first approach further optimizes our logistics partners’ core competencies and enables our sellers to get better pricing and services:
Integrating our tech innovations
Our tech initiatives in the backend work as a collector that collects all the orders from our MSME network and pushes out relevant information about pickup and delivery into their screen. Meanwhile, our ‘Dynamic logistic apps’ allow us to analyze and ensure that every shipment is processed by our logistic team, and they ensure the best cost and service quality.
Extending our tech efficiencies to improve utilization
Our 3 types of apps—our partner app, logistics app, and retail app—are used in logistics to identify products and divert them to specific destinations as per requirement—cost-efficiently. We developed a system to increase the runtime of the supplies within 24 hours, which has made things more efficient and spread out the supplies asap.
Data science to reduce the timing of transportation
Proper timing in the supply chain is a big factor in the ecosystem; think forward and reverse logistics, probability of damage, repackaging, stock inventory etc. We work very closely with brands to reduce all these costs by Further, we built a very strong prediction model based on thousands of MSMEs and supplier attributes to identify frivolous orders and returns.
Our priority is always to help our MSMEs succeed (by saving their money) and connect with the best brands in Bangladesh.
We wholeheartedly follow a user-first approach, and our users value cost efficiency over all else. Our 0% MSME commission and favorable logistics rates make us the lowest-cost channel for small businesses. Our achievement is that we challenged longstanding beliefs and didn’t force-fit solutions created for other markets.
That’s it, that is how we are creating out-of-the-box solutions for the MSMEs.