ONDC(Image:x.com/ONDC)
The Open Network for Digital Commerce (ONDC), could disrupt digital commerce in the business to business space, particularly, in retail, financial services, manufacturing and agricultural sectors, the Deloitte said, reported the ET.
The government initiative, ONDC, with the aim of democratising the e-commerce market, provides a market space which is interoperable for small and medium scale sellers. On the ONDC, buyers and sellers from different platforms can trade if they are on the ONDC platform. The Indian Express reported that by digitising of data and increasing the customer experience prospects, the ONDC ecosystem is to set open new avenues of commerce,
Sathish Gopalaiah, President, consulting, Deloitte South Asia, commented that India’s growth phase would have, empowered consumers and small and medium sized enterprises which would align with the ONDC goals. He added, “with a unique proposition built around agility, security and profitability, at the same time, ONDC streamlines value chains, bridges gaps and endorses innovation, paving the way for the next generation to explore novel paths.”
The contribution of e-commerce in retail commerce is 4.3% of now, which is expected to have a boost with ONDC, especially in manufacturing, financial and agricultural sectors.
For financial institutions, the ONDC offers an exclusive space to engage with the buy and sell sides of a transaction and also the opportunity to expand into new segments and geographies.
ONDC is to make way for brands to connect with retailers and distributers in finding new markets. Both the brands and retailers would benefit from this, for this would facilitate real time ordering, swift delivery and credit management. Fundamental changes are in offer for the clients with the digitisation of small and medium sized enterprises and services like transaction data, fintech and account aggregators. The platform would able streamlined interaction between the suppliers and customers, the report said.
The manufacturing sector”s operational efficiencies could improve by 5-10 %, through ONDC network becoming the all in one space, for supply chain entities and by giving small and medium manufacturers access unexploited demand.
The ONDC has come up as a strong player in the food delivery market, it had 50,000 restaurants for live orders in the month of August, which is a very sharp increase from 500 in February. The most recent company join the ONDC was Pepsico.
