ONDC is dedicated to establishing an interoperable marketplace that accommodates sellers of all scales − from small and medium-sized enterprises (SMEs) to larger entities
Bengaluru: Open Network for Digital Commerce (ONDC), an initiative by Government of India, is set to revolutionise B2B digital commerce in India, according to a report by professional services firm Deloitte.
With “plug and play” capabilities (such as real-time ordering, swift delivery, and credit management) offered by eco-system participants, ONDC will enhance the experience for both brands and retailers, in the process revolutionising the B2B digital commerce space in the country, the report added.
With B2B on ONDC, brands can establish connections with retailers or facilitate their distributors’ entry into new markets.
The network enables direct access for farmers to inputs, services, and buyers while Farmers Producer Organisation (FPO) can establish direct connections with potential clients, bypassing intermediaries. This integration optimises the value chain, facilitating trade amongst stakeholders.
At present, e-commerce contributes just about 4.3% of the retail commerce sector in India. ONDC plans to establish an interoperable marketplace that accommodates sellers of all scales − from small and medium-sized enterprises to larger entities.
“ONDC is a remarkable opportunity for India’s economy spanning diverse industries,” said Sathish Gopalaiah, president of consulting, Deloitte South Asia.
“I’m optimistic about India’s forthcoming growth phase, where empowerment shifts to consumers and SMEs, aligning with ONDC’s mission of illuminating Bharat. At Deloitte our aim is to help customers navigate various challenges whilst leveraging the opportunities that technology and digital commerce bring together with open network,” he added.
The ONDC network is positioned to revolutionize four sectors within the economy including financial services, manufacturing, retail and e-commerce and agriculture.
As ONDC‘s adoption increases, financial institutions stand to explore untapped segments and geographies. By digitising SME data and expanding banks’ customer experience horizons, the network opens new avenues of commerce.
ONDC can support the manufacturing sector’s GDP (gross domestic product) share from 16−17% to 25%. The availability of suppliers, logistic providers, and other ancillary service providers on a single network enables manufacturers to respond to sudden disruptions in the supply chain.
Founded in December 2021, ONDC a private non-profit Section 8 company under the Department of Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce, Government of India, envisioned to create a facilitative model to revolutionize digital commerce.