Who does the buying: Manufacturing plants (auto components, steel fabrication, plastic injection, food processing), MSME workshops, and government/PSU procurement officers. Buyers range from a purchase manager with a team and an ERP to a solo proprietor who is also the operator.
What they use today:
- Phone and WhatsApp — the primary discovery and negotiation channel. A buyer texts three known suppliers, asks for rates, waits for replies, screenshots WhatsApp quotes into a folder.
- IndiaMART and TradeIndia — used for cold discovery. Search returns 200 listings, 180 are brokers or defunct, and there is no way to tell which is which without calling each one.
- Excel sheets — buyers maintain their own supplier matrices with columns for rate, MOQ, delivery, payment term, and a subjective quality score they update from memory.
- Brokers (dalal) — commission agents who know a network of suppliers, take 2–5% on the order value, and are the default option when the buyer needs something fast or obscure. They exist because the alternative — cold search — is worse.
- Traditional dealer networks — for branded machinery (CNC, injection moulding machines, compressors), authorized distributors maintain territory exclusivity. Buyers go to them because service and warranty depend on it.
- Physical工业展会 (trade fairs) — forums like IIME, ACMA, and expo events are used for supplier evaluation but not for repeat ordering.
- Discovery time — a purchase manager spends 4–8 hours per new-part/r新 machinery search. For an MSME doing 10 new sourcing events per month, that is 40–80 hours burned on research instead of production.
- Verification failure — buyers have no cheap way to verify: does this supplier actually manufacture this? What is their capacity? Have they defaulted before? A wrong choice means a delayed order and a legal dispute.
- Price opacity — brokers profit from price ignorance. A buyer paying ₹18/kg for steel forging when the going rate is ₹15.50/kg is not a rare case; it is the norm for non-recurring purchases.
- Logistics fragmentation — raw material buyers (steel, aluminium, polymers) deal with a separate logistics problem: find a truck, verify the loading, track delivery. This is handled by a different set of brokers.
- No auditable trail — when a procurement dispute arises, the paper trail is screenshots and call logs. This makes compliance for ISO/IAF buyers difficult and fraud easy to conceal.