Regopantes-Fair price by simplify the value chain directly from farmers

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Wilda Romadona | Jul 27, 2020 | in Ecosystem best practice challenge | Integrating ICT innovation in key sectors

State your goals.

1). By using the technology, farmers do the end to end process and provide the high quality products, consumers will get fresher products than conventional market provides.

2). Technology is not just a tool. It help us to accurate the fair prices, as we curate the price on the farmers' side and customers' side, and we formulate the fair price by considering the logistic components, so the price we deliver is the fair price for both farmers and customers. By the end, the customers (individual and also the bussiness) can monitor the process itself from harvest and deliver.

3). Social impact, as the price on the farmers' side is increasing, their income will be increased as well, meaning that by buying fresh products through our platform will show that the customers are willing to help farmers increase their income

4). Expand the business models to Indonesia and Asean

5) Farmers not just produce the product but also directly contribute to the whole ecosystem so they can get more value for themselves.

6) Minimize the food waste by simplify the supply chain process

What problems (particularly in value chain competitiveness and global disruption) are your community’s stakeholders facing due to the Covid-19 pandemic?

since 2017, before we started the online business, we have already did the offline experiment to create the formulas to define the fair prices both for farmers and customers. From that, we can faced that both farmers and customers were hard to get the fair prices. So, the formulas that we made is contain the logistics cost, risk cost, and handling cost. All this time, the conventional supply chain has no traceability data for both side, so we started to make in online for the fair data and information for both sides. Since Indonesia conducted large-scale social restrictions during the Covid-19 pandemic, there are many problems that we received, and we are trying to solve it. Especially the issue of food scarcity, because of the difficulty out of the house, many parents are difficult to shop for groceries.
Through those problems, it's time for Local Farmers to show themselves and has an essential role in this situation.

Based on the problem is, we provide an online platform (e-commerce) to users can shop easily directly from farmers and also to support the local farmers to get income and improving the quality on this pandemic. During this Covid-19, our B2C business model are running well, but inversely proportional to the other business model (B2B) because so many restaurant and culinary business are closed on this pandemic.

All the business process is handling by the farmers itself, include the grading, packing, and delivery to our hub. So it minimize to be contaminated, the next process is delivering to our hub and we package to the customers and delivery is handling by third party in a safety box and packaging. It's really simple handling process to minimize the chance of contaminating.

What minimum viable solution(s) are you proposing to address the challenge(s) in your community?

The majority of people do not benefit from any of the online wealth today. A lot of benefit that mobile application can give only targeting people in the top of the pyramid.
8villages is a technology company that focusing on developing platform for villagers, we start with creating a communication and education application for smallholder farmers.
Farmers give 13% of Indonesia's GDP but also the farmers is 30% of the low income earners in Indonesia. Lack of information and market acces limits the farmers to reach their welfare as a result of their works. We try to simplify the long supply chain, through the technology farmers can be the main actors on the supply chain ecosystem. So they can manage and control the process directly, starting with the pre harvest, on farm process, and off farm. The process that we create is to minimize the supply chain layers and empower the farmers to involved directly in the process and ecosystem.

Share your story (your narrative)

First, we started with data collecting and community platform since 2012. In reality, most of the farmers in Indonesia don't have smartphone yet, our data collection platform solve that problem by together with other stakeholder, we monitoring farmers activities and make a decision from there. Since 2017, we try to present the commerce platform that connecting farmers directly to the market with the fair price concept for both farmers and customers.

Well, lot of our farmers are located in a rural area; lack of logistics, bank, market access. So they sell their product to the middleman as well without knowing how much the price of their product (middle man take the products and pay it 2-3 days after, send it to Jakarta and the other middle man buy it to sell in another city through Jakarta). The targeting market is on the central city. We know Indonesia has 33 central city in each province. By connecting the farmers directly to the customers on the central city in each province, we can simplify the layers and supply chain itself. We doing this through digital transformation. We have two platforms; for customers and farmers. By the platform, farmers sell their product by submitting or posting the goods that they want to sell. They know what prices they can sell, how much the quantity, and also have the report of the sold product itself. Also, they know how much the prices the customers buy their product, how is their rating based on the customers side, etc. Before they can sell on the online platform, they should pass the numbers of process and should be verified by our team. For the unqualified farmers, if they still want to sell through our platform, they should follow our SOP, including using application (online platform), SOP in delivery, packaging, etc. 

By using technology, directing access to market and improve logistic to get better price, it improves pricing, traceability, and transparency process. Improve visibility on farmer's activities, give farmers access to information, connect farmers to market, and help them to manage logistic, it can increase farmers income, reduce logistic cost, and consumer receive. Since 2019, the farmers also involved in the B2B business and match the standard, specification, and schedule based on business partner request. It turned to be our big step to enlarge the location we served and growth the transaction itself.

Please provide any additional relevant information that you would like to share.

Goals in One year: In one year (2020) we hope to serve 7.500 farmers who have joined the commerce platform and there are 20.000 registered consumers, and additionally for outlet we planned 350 outlets total in one year (2020) to supply raw material from farmers.

Goals in Five year: in five years, we will serve 18.700 farmers who will join the commerce platform and there are 45.700 registered consumers, and addition for the restaurant and cafe outlet we plan to acquire 800 outlets to supply raw material from farmers. Asia is one of the potential market because the biggest problem of the supply chain is logistic cost and lot of fresh good variant is come from Asia. Beside that, there are huge number of the potential small business in Asia and especially Indonesia.

Your final proposal for challenge

yes