Resolving Supply Chain Issues, So Not Just Being an E-grocery Player

It is undeniable that the pandemic has increased public interest in digital platforms, especially those related to meeting daily needs. As a result, at the beginning of the pandemic, it happened panic buying which results in an empty supply of goods in supermarkets, markets, and applications e-grocery for some time.

like "blessing in disguise"finally player e-grocery has the momentum to acquire as many users as possible to switch to applications with a variety of conveniences offered. The next question that arises is howend game"from player e-grocery?

In answering this question, #TuesdayStartup invited Sayurbox CFO Arif Zamani as a speaker. Vegetablebox so far known as one of the pioneer players e-grocery in Indonesia since 2017.

Still focused on big cities

Arif said, in general, although public interest in e-grocery services has increased, this has only happened in first-tier cities. This condition is closely related to the technological infrastructure in the city which is already mature. This is reflected in the performance of Sayurbox, which is currently still concentrated in Greater Jakarta, Surabaya and Bali.

"If setting up to a city that hasn't ready, it will be an expensive investment because you have to build infrastructure from scratch. Of course, we also have the desire to enter a second or third tier city, but our strategy must be flexible to adapt to the market,” he said.

There are three types of consumers who are currently served by Sayurbox. First, the conservative group, the solution provided is to present agents, drop shipperand virtual assistants Safira that can be ordered via WhatsApp short message. The target market in this group is mothers who are undeniable in terms of advanced age and lack of understanding of technology.

Second, the typical minimalist group has planned the food menu for the next few days. Therefore, the facility that Sayurbox offers is delivery overnight, the goods will arrive in the morning after ordering.

Lastly, for the impulsive group, instant delivery is provided and present at Grabmart,  Orders will arrive within 30 minutes-90 minutes. "Market in minimalism and impulsive only big very, so we're actually more focused on that than conservatives."

Improve supply chain

Behind the ease of accessing fresh goods, actually the root of the problem that Sayurbox wants to solve is the supply chain which is still an issue in the agricultural world. Arif explained, Sayurbox is currently supplying agricultural products directly to farmers with a drop-off system.

To ensure the law supply and demand maintained, the company periodically monitors the level of orders by implementing forecast for the farmers. Also, cooperating with player CloudCash to provide financing for farmers. This step is also an effort to increase the economic class of farmers to become bankable.

"Because there is a commitment to a buying and selling system, so farmers who join us can do this planning so that they can still sell their harvest to us. During this time the harvesting technique was irregular, that's what caused it oversupply and scarcity of goods. We want to build that capacity so that pricing remain stable."

Before this capacity has been properly formed, currently Sayurbox utilizes offline channel when it happens oversupply, while preventing waste. This supply chain issue is also related to the consumer experience when shopping. Stock records can be more current, so the sooner notifications come in, the shopping experience will be much better.

"Because we catch, consumers who have shopped more than four times are most likely to have become loyal consumers, what is difficult is providing an experience for the first consumer to the third purchase," he concluded.

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