Supply Chain Network Strengthening Becomes Eden Farm's Business Growth Strategy

The pandemic that has changed people's consumption patterns of vegetables and fruit brings fresh air to the business industry agritech. The use of technology that is increasingly commonplace is also one of the reasons why the habit of buying vegetables and fruit through applications is now becoming more massive.

Eden Farm is one of the many players in the industry agritech which experienced significant growth. They are suppliers of fresh food ingredients, using technology as a medium for their transactions. They claim, this year there is 6 times growth when compared to last year.

Their internal data also notes that currently they have served 20 thousand SMEs, 2 thousand reseller, a thousand restaurants and cafes, as well as 25 startups businesses in Greater Jakarta and Bandung. Eden Farm has even started to expand into frozen food products for meat and fish.

"We also strengthened two important foundations on the supply and demand sides by building Eden Farm Sourcing Center (ESC) and Eden Farm Distribution Network (EDN). ESC is a program of direct collaboration with farmers to determine cropping patterns, certainty of selling prices, and certainty of quantity. farm produce taken every day. Meanwhile, EDN is a distribution network created by empowering the community. EDN is spread in various locations and is within a 5 km radius of the customer so that delivery is faster and more efficient," explained Eden Farm Co-founder David Gunawan.

David further explained that their business conditions remained good during the pandemic. Good relationship with farmers through ESC keeps prices and supply stable. The factor of customers who are in various industries is also another thing that makes Eden Farm less affected by the pandemic.

“The next factor is because customerEden Farm spread across various sectors. So that when one type of customer is affected by the Pandemic, Eden Farm's demand does not immediately drop because there are still other types of customer others who remain stable during this pandemic. Our prices, which are arguably the cheapest on the market, also help our customers to keep running their culinary business in this difficult time," added David.

Truly in the industry agritech many players are experiencing spikes. Even this sector is bustling with new players as a result of pivot or their innovations in other industries. This is due to the fact on the ground that the demand for fresh fruit and vegetables is indeed on the rise. Now the challenge is how to bring quality and stock stability, considering that what we are looking for is not only fruit and vegetables, but fresh and quality fruit and vegetables.

For startups last year pocket funding from Y Combinator, Everhaus, Global Founders Capital, Soma Capital, S7 Venture and a number of angel investors this focus on expanding ESC and EDN is one way to maintain the supply and quality of their products.

"We continue to expand the ESC and EDN network to strengthen the relationship and quality of farmers, demand infrastructure and make our business processes more efficient. Currently we are also preparing to expand to other cities in Indonesia. The target in 2021 is to become an agritech startup B2B number 1 in Indonesia in terms of market share," close David.