MSME New Logistics Policy Will Help Boost Your Business 2020

Logistics policy - Instamojo Blog

Finance Minister Nirmala Sitharaman has announced the introduction of a new MSME logistics policy to help boost business for the sector and make it more competitive.

What is the new MSME logistics policy?

The National Logistics policy is set to be launched soon, with one main motive – create a single-window e-logistics market. Apart from this, the Finance minister also plans to launch a scheme which will help MSMEs:

  1. Achieve a higher export credit
  2. Higher insurance cover
  3. A reduced premium for small exporters
  4. Simplified procedure for claim settlements

The Union budget 2020 focused on improving MSME schemes and providing financial assistance. MSMEs contribute to over 30% of the GDP, and with a new logistics policy, it will go beyond just simplifying shipping for SMEs.

A study showed that over 81% of SMEs are prioritising export markets, and want to boost business globally. But good logistics management should do more.

How MSME logistics policy boost business profit?

Sure, product delivery is the main essence of what logistics management is for small business. But today, companies and shipping partners want to bring efficiency in the supply chain and technology too.

logistics management for small businesses Instamojo blog

There is extensive demand across the country for an efficient, transparent and FAST delivery system.

Likewise, your customers want their products delivered to them as soon as they place the order. Logistics companies and tools provide value-added services along with shipping, alongside after-sales customer services and inventory management too.

Challenges MSMEs can overcome with good logistics management:

Deadlines and Timelines:

As an MSME, you are on the clock. With limited capital and a small workforce, it could be close to impossible to deliver products once you expand production. Logistics companies usually have a pan India reach.

They easily cover tier -II and tier – III cities too. An MSME logistics policy by the Government reduces the hassle of finding the right partner and seconding a lot of money on shipping.

Access to technology:

With the help of technology, logistics management involves tracking shipping from the moment the order is placed.

Be it Artificial Intelligence or the entry of drones, technology helps small businesses like yours with demand planning, automated package sorting and sourcing optimisation – and even choosing a payment gateway! Other pros include:

  1. Providing optimised route predictions for faster transit – mapping the quickest way to get your product to the customer.
  2. Stress-free real-time visibility
  3. Freedom of online payment modes
  4. Electronic proof of delivery
Customer Relationship Management (CRM)

Remember it’s not all about shipping with an effective logistics tool right? Your customers are your profit-makers.

Today, customers do not just want a product delivered, they want an experience. Logistics tools offer tailor-made and customisable CRM tools to help you provide an experience for your customers.

mojoXpress – Logistics Tool for Instamojo Users

The MSME logistics policy by the Government wants to ease shipping, supply chain and boost business and increase profits.  If your business is looking for an affordable logistics management tool that will help you reduce time and effort, you’re here already.

It takes entrepreneurs an average of 240 minutes (about 4 hours) in a working day to pack, and send a shipment to customers. With Instamojo’s mojoXpress, it takes just 1 minute. 

Which is why using mojoXpress has enabled entrepreneurs to reduce shipping time by almost 99%.

Read: How does mojoXpress solve all your logistics challenges?

Want to know if mojoXpress works for your business? Check out Bakarmax – a quirky art brand that uses mojoXpress to ship their products:


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