Digital transformation in supply chains, from the perspective of the bioeconomy producer.

7/11/2023

Breaking paradigms between the producer’s challenges and the requirements that guarantee the success of the operation.

In the bioeconomy and agribusiness, when we address topics such as Industry 4.0, digitalization, agile methodologies, traceability, guarantee of origin and, above all, transparency in the process, from end to end, we should always start from the producer’s perspective. After all, considering reverse engineering is not the business of those who are at the other end of the negotiation table, wanting to buy.

In this context, a maxim that is accepted by the market and which, in an ideal scenario, helps in the entire process, is the rapprochement of producer and buyer. Such movement can be summarized in the equation, reduction of intermediaries x transparency, agility and guarantees in the operation.

Bringing this challenge to the producer in the bioeconomy, the process of building commercial relationships involves much more than the daily sweat of the rural worker, to ensure a top quality harvest. A set of actions/requirements is to be observed, as follows:

Transparency

From production to product delivery, through all the guarantees necessary for the success of the negotiation, transparency is the fine line that separates a first operation from a new order.

Origin

By analogy, following the logic of the wine production chain, the Terroir is a competitive differential that values and tells a lot about the quality of the product and its production method. In the bioeconomy, the creation of seals aiming to guarantee the origin of the product is becoming frequent.

Intermediation

Digital transformation has arrived, among other things, to allow direct contact between producer and buyer. After all, some platforms work as “showcases” that propagate the producer’s brand, attest to the quality of the product and become a market place, a direct channel with potential buyers and a means of arbitration that brings security to both.

Traceability

Industry 4.0 has brought profound transformations in this regard. After all, it has become possible to follow the entire logistics process, from the First to the Last Mile.

Transformation

When the operation involves transforming agents, a little of everything described above is transformed into arguments that help in the final consumer’s purchase decision. Seals of origin, incentives for local or small producers, carbon footprint reduction, ESG concepts, SDGs and others are requirements that not only help in the positioning of brands in the consumer’s mind, but also in the valuation of their shares, as in the cases of publicly traded companies, for example.

Final product

Producers, today, understanding that they can add value to production, eliminate intermediaries and aim for more revenues, are already working on offering products that have already been processed, ready for commercialization and consumption. Thus, they are independent of the manufacturing industries and integrate new SKUs into their inventory.

Smart Supply Chain

All these processes make up the so-called Smart Supply Chain, which guarantees a connected, integrated and traced chain, capable of bringing all the safety and success in the operation.

Here at Directto, we act as digital transformation agents for producers, in addition to functioning as a market place that connects, intermediates and monitors the entire process of buying and selling bioeconomy products, from the Northern Region of Brazil, to the rest of the country and the world.

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