Agricultural sector reforms & digitisation
Agricultural production is the core economic sector for the majority of countries across the globe and scaling up agribusiness is the next growth frontier. Post-COVID Agri world will be forced to do things differently as the government and companies will need to review their supply chain resilience, adopt customer driven business models, food safety procedures, and safety.
Transparency and visibility in agricultural operations are very important and this is highly applicable to companies doing end-to-end handling of exporting of smart farm produce. There can be multiple actors within the agricultural supply chain starting from planning of crops to the end distribution of agricultural produce to consumers. Most often work procedures and functions within the supply chain are done manually with a lot of effort and consuming more time. Paper based data records maintained cannot fulfil connected and real-time communication between various actors that cause redundancies and delays in the supply chain process. It is the need of the hour agricultural local buying Companies should adopt supply chain digitization strategies as part of adapting to new normal.
Supply chain digitization
Stock monitoring or Inventory Management of the farm produce is very complex for most of the farm processing and export organizations. Information on the amount of stock purchased from farms, Stock transfers, and receipts between warehouses, and monitoring of inventory level at each business unit, all need to be accessible to Managers for right-time decisions.
During the procurement time and at each point of farm receipt, the quality of the farm produce needs to be assessed based on weight, moisture content etc.to guarantee excellent quality stock for exports. Within procurement, multiple farm purchases made by purchase officers from various locations need to be updated to stock as soon as possible so that local buying companies are confident to take new orders and smoothens the supply of farm produce. Vineyards can opt for remote monitoring solutions.
Finance is the blood of the business and tracking inflow and outflow of funds is necessary. Agriculture buying companies transfer funds to its various business units for the purchase of farm produce and for various operational expenses. These funds can again be distributed to subunits or purchase officers for the same type of expenses. But often the tracking of funds and its usage monitoring is not possible for agriculture buying companies due to ineffective systems in place.
Multiple platforms are dependent on the transfer of funds to various units which is a hectic process. Head office and top management are always concerned about fund flow within the business and the real-time finance info is completely absent in manual processing. When it all comes to invoice preparation for the final buyer, people find it difficult to collate expenses against a particular order which takes days in invoice preparation and leads to costly mistakes.
So what can be a possible solution for agricultural local buying companies to overcome supply chain flaws? As highly recommended, an effective supply chain strategy can be adopting information-driven, integrated ICT systems enabling organizations for effective inventory management, fund tracking, and assisting in market-led extension activities. A digital solution will be a boon to agriculture buying companies as everything is monitored in real-time, communications are faster, reduced workload, and enhance seamless processing of logistics operations. partner and ecommerce seller payments can be easily managed as these effective farming automation systems have integration capabilities with most of the 3rd party payment systems. Digitization among agriculture buying companies across the world is at a high trend as most companies mark it as a relevant post normal.