TaniHub Introduces Its New Business Unit "TaniSupply", Specially Handles Supply Chain

Startups agritech TaniHub Group introduces TaniSupply (PT Tani Supply Indonesia) which specializes in addressing issues in the supply chain. The new company was officially established on September 19, 2019.

For the record, TaniHub (platform E-commerce), TaniFund (p2p lending), and TaniSupply (supply chains) take shelter under agritech TaniHub Group. All three work in different fields with different regulators, but with one vision of accelerating positive impacts in agriculture.

TaniSupply Director Vincentius Sariyo explained that his maneuver under his own entity would be far more aggressive in developing the agricultural supply chain business. This is because the business license from TaniSupply stands under a different ministry than TaniFund (OJK) and TaniHub (Kemenkominfo).

At the warehouse, the TaniSupply team carries out the purchasing process from farmers. Then process grade fruits and vegetables, measure the level of sweetness, do quality control (QC), and quality assurance (QC). Lastly, there is a logistics team to maintain the quality of the products that reach the customers.

"We are in the middle, in front there is TaniFund and behind us is TaniHub for channel its online sales. TaniSupply will take care of purchases from farmers, there is a function , warehouse, last mile delivery, quality control, and others," explained Sariyo, Wednesday (20/11).

Currently, the company's warehouse is installed with special standard coolers to keep products from decreasing in quality. Warehouses can also be used, in the sense of rent, by other parties to store food products for a certain period of time.

Investments in storage machines such as blast freezer will also be prepared to meet market needs. He even said that TaniSupply was applying for certification for ISO 22000 related to food safety and halal warehouses. It is also possible to export to neighboring countries.

As a result, many plans can be developed from TaniSupply in the future, not only for the ecosystem within the group, but also for the sustainability of the agricultural ecosystem as a whole.

The distribution of TaniSupply warehouses will be focused outside Java to strengthen agricultural ecosystem to be more integrated. This includes shortening the distribution chain from farmers before being distributed to consumers.

Currently the company has a warehouse or distribution center located in four cities (Bogor, Bandung, Yogyakarta, and Surabaya), as well as a number of distribution points in various areas.

Additional locations that TaniSupply will target include Bali, Sulawesi and Balikpapan. TaniSupply's newest warehouse will be located in Cikarang with an area of ​​10 thousand square meters.

"In 2021 we are targeting to be present in all cities throughout Indonesia."

The long-standing issue of supply chains in Indonesian agriculture

Sariyo explained that the initiation of establishing TaniSupply was actually due to the desire to establish a comprehensive agricultural ecosystem from upstream to downstream. There are still many issues in the field that can be solved with technology.

Each business unit of TaniGroup has different problems and has a common thread, wanting to improve the agricultural ecosystem which until now has not been well organized.

So far, the composition between supply and demand always on the farm mismatch. Because, agricultural products are divided into several grade, not all of them want to be absorbed by off taker (buyer, one of them is middleman).

Leftover crops with grade eventually had to be sold far from the cost of goods sold (HPP). This condition certainly makes farmers lose money. There are many other issues related to the old paradigm that still constrain local farmers, making it difficult to develop.

TaniHub has also fostered around 35 thousand farmers and farmer groups, providing around 800 SKUs. The majority are fruits, vegetables, fish, chicken, eggs, and rice. Only, 90% of these farmers are farmers trading or sell off.

"To meet demand at TaniHub, 90% supplied by farmers trading. Only 10% came from TaniFund, so the PR at TaniFund is still a lot," added VP of Corporate Services TaniHub Astri Purnamasari.

Offline sales through TaniHub still dominate around 80%, compared to online sales. The majority of consumers in this offline are supermarkets, Horeca, the F&B industry, retailers, to startups.

"Initially, TaniHub's business was directed to B2C via the application. But over time it didn't scale up, finally we Switch to B2B."

The company distributes several private-label when distributing to offline partners. For example, SommerVille for brand special fruit; VIS for fish products; Fowler for chicken, duck and eggs; GoldFarm for organic vegetables; and Lentik for rice.

With the presence of TaniSupply, TaniHub Group is increasingly establishing itself as a service agritechend-to-end. So far, most players agritech no one has played from upstream to downstream in the agricultural ecosystem.