The document discusses the evolving landscape of B2B distribution in India, highlighting the need for faster delivery and real-time data as businesses shift from a push to pull sales model. With the potential for a $2.5 trillion offline retail market by 2030 and a robust network of delivery agents, the document emphasizes the opportunity for third-party logistics (3PL) to enhance efficiency and reduce costs in B2B distribution. Additionally, it mentions that technology-driven solutions could transform last-mile fulfillment, catering to the growth of micro-retailing and omnichannel commerce.

1. B2B Distribution
The next big thing awaiting shakeup

2. EXPRESS DELIVERY
IS A NORM IN B2C...
NEXT IN LINE IS
B2B DISTRIBUTION :
3 Hrs 12 KM
AVG. DELIVERY TIME AVG. TRIP LENGTH
The current format of Next Day delivery will not
work in future as Distributors want faster inventory
turns and real time data around demand.
INDIA with its ultra dense cities, 50Million SMEs,
Infinite Supply of Delivery Vehicles (150M 2
Wheelers, 5M SCVs) is made for faster deliveries.

3. 01 HUGE MARKET
$2.5 T OFFLINE RETAIL MARKET BY 2030

4. 02
The Growth of Omnichannel requires faster replenishment -
With growth in omnichannel commerce, consumers are looking to stores for
faster delivery and increased selection which in turn are pushing distributors
for it.
NEED FOR 3PL DISTRIBUTION
CONSUMERS WANT "GREAT SELECTION, FAST
DELIVERY & LOW PRICES" SO WHY NOT BUSINESSES
Last-Mile Networks in B2C Deliveries can be used
With 3PL networks getting evolved in consumer deliveries, B2B
Distribution is next problem to crack , the supply(drivers) is already there it
has to be plugged in to the demand (distributors,wholesalers etc.)
Pull Sales taking over from Push -
From being a Distributor push B2B sales are turning to a Retailer Pull where
businesses are buying online on the belief of greater transparency and faster
delivery.

5. 03
EMERGING LANDSCAPE
B2B DISTRIBUTION IS STILL DONE THE TRADITIONAL WAY WHILE
STARTUPS FOCUS ON E-COM, LOGISTICS IS STILL LAGGING
With B2B distribution being outsourced the
overall cost of distribution would come
down as has in the case of E-com and last
mile deliveries.
B2B E-COM
DistributorsManufacturersTraditional (FMCG manufacturers &
distributors) New Age ( B2B e-com) are
potentials for a 3PL partnerhisp
Cross utilizing Delivery agents & vehicles
across multiple distributors and categories
will bring in benefits including higher
inventory turnover ratio for distributors.
Manufacturers and Distributors are also building ordering plaforms
The opque nature of the current push based model leads to poorer visibility into
product demand, lower inventory turnover and higher logistics cost (due to carrying
unnecessary products and high returs). All this is prompting to build online
ordering platforms which can be plugged into an existing 3PL network.
&

6. 04LAST-MILE B2B DISTRIBUTION
0.6M
SNAPSHOT - STORE TO DOOR DELIVERY
WITH MILLIONS OF B2C TRIPS NOW HAS A SOLID
BASE TO BUILD A B2B DISTRIBUTION NETWORK
55 Mins
<3 KM
1.8 | 2.2
AVG DELIVERY TIME
AVG DISTANCE PER DELIVERY
ORDERS/TRIP | ORDERS/ HOUR
97 / 100 FULLFILLMENT RATE
DELIVERIES PER QUARTER
6 ACTIVE CITIES
1.5K ACTIVE RIDER PARTNERS
600 ACTIVE STORES
THE Build UP- NOW has been active in the Store to Customer Delivery space for the last 3 years
and has done millions of deliveries across categories.
+16 %
UNIT MARGIN
HORIZONTAL DELIVERY HUB-N-SPOKE
With a Horizontal focus NOW has been able
to rack up impressive operational metrics
on utilization, unit economics etc.
NOW is doing a significant number of
Warehouse to Outlet deliveries of its existing
retail chain clients already.
B2B distribution clubbed with last-mile B2C
deliveries will ensure high monthly wages
for Riders. Daily utilization of 15-20 orders
would move to over 40- 50 orders per rider.
High Utilization
TOP FMCG
In a dense country like India with cheap
labour (EV Delivery in Future) & large number
of small biz as end customers the cost per
order would go down to 10-15 Rs per
shipment
Ultra Low Delivery Cost
2K DISTRIBUTORS 2M MICRO RETAILERS
Has started B2B distribution for a large FMCG player with PAN India
reach. Active in Delhi-NCR NOW would be delivering to over 15K micro
retail outets and would be in postion to add up similar brands

7. 05FUTURE POTENTIAL - VISION
ALL INDICATORS FORECAST AN EXPLOSIVE GROWTH 3PL B2B
DISTRIBUTION & MULTIPLE BILLON $ COMPANIES BEING BUILT
Micro Retaling is a growing Trend, even larger brands are building small-format stores to increase
personalization & local brand building, coupled with Omnichannel will lincrease number of Small
stores which in-turn will lead to a higher demand in organized and dependable last-mile Fullfillment
where a Tech based B2B distribution player like NOW can radically change things.
PAN-INDIA
100 TOP BRANDS
100 K DRIVERS
5 M RETAILERS
1M DAILY ORDERS

8. SOURCES:
PWC STRATEGY & ANALYSIS
https://www.ibef.org
https://www.livemint.com/Auto/N3Ixh0Mv3eu2vWfzeiRw3N/India-runs-on-two-wheels-and-animal-carts-data-shows.html
https://econsultancy.com/what-is-micro-retailing-and-why-is-it-a-growing-trend/