Matchbox Solutions

 

 

From Ideas to Implementation

 

Click to view the eFarm presentation (MS powerpoint)

Click to view a pictorial walkthrough of eFarm's operations

Stay informed about eFarm's activities , events and delivery schedules.Subscribe to our community newsgroup at google groups.
Email:

 

Visit this group
The eFarm Solution

    Summary

  • Identify the demand from customers in advance
  • Aggregate the demand by produce type and identify the best source of supply
  • Use a simple, IT driven order matching system to determine right sourcing & logistics strategy to fulfill the order.
  • Minimise wastage by procuring only what is required
  • Fix rates based on overall operational costs and margins taking into account all members in the supply chain
  • Immediate distribution through different marketing channels (bulk orders, door delivery, hand carts, walk-ins) to reduce need for storage/deep freezing etc.,
  • The video below gives an overview on how efarm works
    •  
    Operation Detail

    Step 1 : Advance ordering : As most of us have tendency to walk up to a vegetable store and pick up our veggies at spur-of moment , we hardly ever plan our purchase in advance. But with a little planning, one can predict that most of the time our needs dont fluctuate. Just like how you book train tickets or movie tickets in advance, by planning ahead one is assured of the availability and a fairly fixed price. Just think of extending that concept to the vegetable market and voila ! The first step to taming the inflation is already taken. Based on current user preferences and availability we have standardised order forms which can be filled in, or through phone or online to the main area coordinator. (See sample here)

     

    Step 2 :Aggregating the demand : Once individual user requirements are known , the area coordinators bulk up the demand by produce. From this we know how much to procure, what to procure and when to procure. If you do the math, even an your own apartment block of say even 100 households can easily be buying close to 2.5 tonnes of vegetables every week ! Just imagine what a street would be buying ? Bulk order customers are required to put in a deposit or advance amount , to reduce risks of last minute cancellations.

     

    Step 3 : Order matching : Through a network of suppliers, farmers across several areas who are already enrolled in our system we can map the demand to the possible areas of procurement. Based on prevailing rates, availability and logistics costs a simple matching system determines the procurement flow.

     

    Step 4: Just in time procurement : Our local field agents and sourcing personnel coordinate the procurement across zones based on the information sent to them via email/phone. They also oversee the quality checks and loading of the items in appropriate vehicles .Almost all of agri-produce shipments in India happen through unorganised sector - independent lorry owners or small fleets of trucks of various capacities. We have signed up with direct lorry owners, and have a database of the lorry capacity, routes and average prices . Based on the sourcing decision, we pre-book lorries for our long distance deliveries, hence reducing unexpected escalations in transport costs.

    Step 5 : Rate fixation & invoicing : We track local, regional and retail market prices for each item. Based on final purchase price, and taking into account operational costs & margins across all members in the supply chain, the final invoices are generated . As our operational costs and margins are very low, customers see upto 20% overall savings compared to prevailing market rates.

    Step 6: Localised distribution : We use women from local NGOs and self help groups to handle the unloading, sorting and delivery of the orders. Several microfinance institutions and nationalised banks offer soft loans for promoting self employment. This becomes a sustainable business model for a a team of 5-10 members with minimal investment and risks as they are provided the necessary support and business acumen from eFarm.

    We have divided the metro areas based on population density and demands into areas of 5 km radius which is operated by one team. Each team is composed of sorters (who unload the produce, check the weight, and bag them for delivery) , delivery team (which handles door deliveries, catering, restaurant orders), retail team (which handles walk in customers, push carts and shops) . As time is very crucial in this operation , each team is set targets to achieve on delivery and quality.

    The final collection is done upon delivery as cash or online bank transfers.

     

    eFarm : Key benefits and Differentiators

    Though in a simplistic way we are also in the vegetable business, our objectives and operational model are quite different from a conventional trader or retailer.

    • eFarm passes on better prices to the farmer, which is vital to improve viability of agriculture and continuity of supply

    • eFarm guarantees fresh quality and economical prices to end consumer owing to faster, better and efficient supply chain methods

    • eFarm brings transparency and professionalism to the vegetable supply trade which currently has operates with very little paper trail or accountability.

    • eFarm is a entrepreneur driven model and promotes a shared platform connecting individuals, associations, agricultural institutions,agro-based industries,logistics providers,retailers,end buyers and financial institutions , promoting cross-interactions across the community using online & offline methods .

    • We work through NGOs and Self help groups to have a large workforce, yet not have overheads of fulltime payrolls as each of them are supported through microfinance institutions

    • eFarm borrows its concepts from the success of popular internet phenomenon like 'eBay', 'open source communities' & 'social networking' and adapts it to solve real world problems in the agri-supply chain

    • eFarm adapts and adopts technologies to suit local requirements and user background with a strong focus on simplicty , low cost & widest acceptance

    • eFarm uses existing available resources and facilities rather than building new ones, thereby encouraging re-use. For instance, there are several unused cold storage facilities & shop-spaces available from government for entrepreneurs , which lie vacant for lack of takers.

    • eFarm uses human powered channels of distribution as far as possible to reduce capital expenditure & fuel bills

    • We use word of mouth publicity, low cost targetted advertising and online marketing (like blogs,forums) to spread the word , hence reducing advertising overheads

    • We use bottom-up market penetration to quickly gain volume and depth catering to all segments of end user. Our customer profile ranges from the 'daily wagers' like servant maids & rickshawallahs to 'boutique operators' like gourmet shops.

    • The demand/supply data collected after each transaction is used for analysis and further refining our overall processes