Small vs. Large Manufacturers: The Procurement Divide That's Holding India Back

Published on: July 19, 2025

Author: Team JITSY

Introduction

India’s manufacturing sector is undergoing a transformation - but not everyone is moving forward at the same pace. While large corporations continue to consolidate advantages in procurement, small and medium enterprises (SMEs), who form the backbone of our industrial ecosystem, are left navigating inefficiencies, price uncertainties, and opaque systems.

The disparity in procurement capabilities between large manufacturers and SMEs is not just an operational issue - it’s a structural roadblock that restricts competitiveness, innovation, and inclusive economic growth.

This paper explores the deep-rooted procurement divide, its impact on SMEs, and how JITSY is working to level the playing field - using modern tools, trusted networks, and a strong understanding of the ground realities of Indian manufacturing.


1. The Procurement Power Gap

Large Corporations: The Privileged Few

Large manufacturers enjoy procurement advantages that go far beyond simple economies of scale:

  • Better Pricing & Bulk Discounts: Their high-volume purchases ensure lowest rates and early access to price drops.
  • Priority Allocation: In times of supply shortages, suppliers favour larger buyers.
  • Favourable Payment Terms: They negotiate extended credit cycles with little to no collateral.
  • Data & Market Intelligence: Access to market trends, forecasts, and insider updates give them a strategic edge.
  • Integrated Supply Chains: They operate with digitised systems, making ordering, tracking, and compliance seamless.

SMEs: Fighting with One Hand Tied

On the other hand, SMEs - often family-run, owner-managed units - face an uphill battle:

  • Fragmented Supply Chains: No single window to access verified suppliers or complete documentation.
  • Inconsistent Quality: Lack of standardisation and audit trails in sourcing raw materials.
  • Opaque Pricing: SMEs rely on intermediaries, leading to variable and inflated prices.
  • Cash Flow Pressures: Limited access to formal credit leads to dependency on high-cost financing.
  • Lack of Transparency: Absence of reliable data on suppliers, grades, or comparative pricing.

This procurement disadvantage reduces margins, affects planning, and discourages scale. Ironically, the very manufacturers who need support the most are left underserved.


2. The Broader Impact on the Indian Economy

The procurement gap is not an isolated issue. Its ripple effect touches the larger economic narrative:

  • Delays in MSME Growth: Procurement inefficiencies directly impact the ability to scale, hire, and invest.
  • Wastage of Resources: Time and money lost in navigating unreliable networks and informal processes.
  • Inequitable Supply Ecosystem: Concentration of supplier relationships around large players affects market fairness.
  • Reduced Global Competitiveness: Indian SMEs struggle to match international standards in quality and consistency.

In an era where digital solutions are reshaping commerce, leaving procurement behind means dragging the entire industrial chain down.


3. JITSY: The Equaliser India Needs

JITSY was built with a single belief: every manufacturer - large or small - deserves a reliable, efficient, and fair procurement experience.

We are not just another trading platform. We are an end-to-end solution designed for the real-world needs of Indian industry.

Here’s how we’re bridging the gap:

✅ Access to Verified Materials & Brands

From PVC and PE to engineering polymers like ABS, PC, and PP - all materials are sourced from verified suppliers with audit-backed traceability.

✅ Fair & Transparent Pricing

No middlemen. No price juggling. You see what the market sees - and we help you lock rates before the market moves.

✅ Financing & Flexible Credit

We help SMEs get access to financing solutions tailored to their purchase volume, payment history, and growth track - not just CIBIL scores.

✅ Digital Convenience, Human Reliability

Quote requests, confirmations, documentation, delivery tracking - all online. But behind the tech, there's a dedicated support team that understands your business.

✅ Pan-India Logistics & Delivery Support

We ensure timely delivery across industrial hubs, helping SMEs focus on production, not pickups.

✅ Data-Backed Planning

Our platform enables users to view price trends, volume reports, and grade-wise insights - levelling the information asymmetry between small and large players.


4. Reimagining Procurement as a Growth Lever

Procurement is not a back-office function. It is a strategic tool - one that can make or break a company’s growth. For SMEs, optimising procurement means:

  • Improving profit margins
  • Ensuring production continuity
  • Meeting delivery commitments
  • Building credibility with customers
  • Becoming investment-ready

JITSY empowers SMEs to treat procurement not as a challenge - but as a growth opportunity.


Conclusion: A Fair Playing Field Drives a Stronger India

India cannot afford to grow unequally. If the vision is to become a global manufacturing powerhouse, we must ensure that procurement works for everyone - not just the big players.

JITSY is doing exactly that.

We are not replacing relationships - we’re strengthening them. We are not creating complexity - we’re simplifying it. And we’re not just digitising a process - we’re redefining trust in B2B commerce.

The time has come to stop asking small manufacturers to wait their turn. With JITSY, their turn is now.

www.jitsy.in | connect@jitsy.in | +91-9711562699

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