Who does it: Small and medium manufacturers (turnover ₹1–100 crore) employ 1–3 people in "stores" or "purchase" roles. These are not trained procurement professionals — they are often the owner's relative or a multi-tasking floor supervisor who also handles dispatch. Larger firms (₹100+ crore) have dedicated purchase departments, ERP systems, and approved vendor lists, but even they use WhatsApp for urgent orders outside the system.
What they use: Phone calls dominate. A typical purchase call goes: buyer calls 3–5 suppliers → waits for quotes by SMS or WhatsApp → cross-checks mentally → places order by phone → follows up by calling again. Email exists in less than 20% of MSME purchase workflows — it is considered slow and formal. Excel is used for internal tracking (what was ordered, from whom, at what price) but rarely shared externally. WhatsApp groups exist for some commodity categories (steel bars, PVC pipes) where suppliers broadcast prices and buyers respond.
Where time and money leak:
- Quote collection takes 2–4 hours per purchase order for a single item, spread across multiple calls and follow-ups. For a monthly purchase volume of 50 items, this is 100–200 person-hours.
- Price opacity is systemic. Suppliers quote differently to different buyers. A buyer in Lucknow pays more than a buyer in Mumbai for the same bearing because the Lucknow buyer has no competitive reference. The broker's value is not logistics — it is information. He knows who has stock, who is desperate, and prices accordingly.
- Non-standard parts cause the worst delays. A pump seal or a non-standard fastener requires the buyer to physically visit the market, because a phone description is insufficient. This is a full-day trip in cities without concentrated industrial markets.
- Credit and payment terms are informal. A supplier who offers 15-day credit to one buyer offers 30-day credit to another buyer he trusts more. This creates arbitrary advantage and lock-in.
- Quality disputes after delivery are handled by negotiation, not formal claims. The buyer absorbs the cost or blacklists the supplier informally.