Pakistan lacks an integrated platform for SMEs (especially Manufacturers) that can provide both national and global reach. For buyers, there is an absence of easy to access and competitive market place for Pakistani products. Similarly, the existing mode of B2B trade is cumbersome, expensive and not transparent. Keeping this in mind, our aim is to provide a solution to this problem by leveraging technology and connecting buyers directly with manufacturers, something which is still in its infancy in Pakistan. 

Bulkistan is a B2B ecommerce platform that will bring manufacturers and buyers on one integrated, easy to access and transparent platform. It aims to empower buyers and manufacturers to carry out trade in the most direct manner possible, thereby, reducing intermediary channels. Bulkistan will provide the following benefits:

·         Lower costs to buyers through reduction of intermediary channels and direct access to manufacturers

·         Transparency on product quality through a rating system and competitive product listing

·         Information on seller response time, delivery/lead time, and history of previous transactions

·         Trade insurance for care free business

·         Logistics management for low cost bulk item transportation

·         Pan-Pakistan and global reach of manufacturers’ products ensuring growth in exports

·         Imports reduction through competitive reach of Pakistani products within Pakistan

·         Jobs creation through revival of manufacturing sectors and associated industries

As explained earlier, currently the problem/traditional B2B transaction is cumbersome, expensive and not transparent.  We will try to explain the case through an example of local manufacturer of sprocket. In Lahore, Ghazi Abad area, there are various micro manufacturers. Due to financial constraints and lack of access to market, they have been relegated to the position of laborers. In a value chain there is usually a stockiest that provides financing for raw material. The manufacturer only gets labor charges, typically between PKR 15 to 20. The stockiest sells it to wholesalers of local area with per piece margin of PKR 40. And the wholesalers sells it to local or out of city end B2B buyers. If we analyze the value chain of different SMEs, such as hosiery, cutlery etc the relationship of different parties in the value chain is similar. Mentioned below are similar features of different parties in the value chain

 

·         There is always a financier that provides input to the manufacturing process

·         Parties in the lower part of value chain have low margins due to lack of access to market and capital particularly running finance 

·         Parties in the higher end of value chain have higher margins

·         The end B2B buyers end up paying high prices due margins of various intermediaries in the value chain

·          The direct access to international buyers is almost non existent

 

Now our business plan aims to improve the structural problem in the value chain and reduce the role of intermediary. We want to provide a market place for both sellers, with particular focus on manufacturing SMEs, and buyers, thus providing direct access to the market. With 30 % advance payment, provided by the buyer, we will reduce the role of traditional financier and eliminate any intermediaries, whose sole function is to provide market access