Wednesday, 19 June 2013

Increase on farm operational efficiency with FarmERP - Unique case study of an Oman based Agri-produce company

“Our Client is one of Oman’s first commercial farming enterprises. Established in late 70’s in Oman, The client has its operations in cultivating vegetables & dates, post harvest technology and cold chain management; their annual turnover is more than US $ 5 million. Our client has a total cultivated area of around 1400 acres spread over 6 locations. The client has a reputation of producing top quality tomatoes, sweet melons, watermelons, color bell peppers, beans, carrots, cabbage, lettuce along with dates, mangoes and other citrus fruits. The client particularly takes pride in the successful cultivation of lilies in Oman, which is quite a challenge”

Business Challenge

Over the past decade, the agriculture sector in Oman has seen exponential growth with increased emphasis on food security and is evolving as we speak. For our client, Exercising control over multi location farms and low yield was causing decline in revenues. Also, managing and optimal utilization of human resources for different farms was an uphill task. The client needed to develop a strategy right down to plot level for enhancing farm productivity, efficiency and the overall quality of the produce to gain a strategic competitive advantage and build sustainable revenues.

Client determined its strategy needs to focus more on yield enhancement by the way of effective farm management. High costs of manpower, agricultural inputs and scarcity of water resources were the critical success factors for increasing the profitability of Client. Secondly, Farm to Fork traceability was lacking and the harvest could not be trailed back to its source. A stronger cost control and intelligent inventory management were required for Client to gain better control of its business operations and act strategically.

To address these challenges, Client sought to team up with a company with demonstrated experience in the Agriculture domain, specifically in developing ICT based software solutions for farm management and with experience in delivering results. FarmERP, with its global experience in the areas of effective farm management, providing table control of farms, farm-analytics based inventory, modular structured reporting mechanism and other modules like Finance, HR, Planning, Production, Post production, Sales & Contract farming was the leading choice for this collaboration.

How FarmERP helped?

The Client and FarmERP embarked upon a three month journey to strengthen the company’s farming methodology by majorly focusing on three initiatives: Setting up table control of all multi location farms, implementing a modular approach for farm management through ERP and augmenting existing analytical capabilities through reports. The aim of the project was to facilitate Client with precise data so as to take informed decisions for achieving their ambitious growth plans.

Our team of experts visited Client farm sites and pack house facilities to gain better understanding of their processes and identifying their pain areas. Based on these requirement gaps, FarmERP was customized to Client needs.

With this approach FarmERP helped Client collate micro level data on a centralized server from disparate sources. This data is available to stakeholders through secured login.  FarmERP ensured the implementation of Good Agricultural Practices (GAP) and also to create crop schedules from a central location for the client.

FarmERP implementation impacted the client as follows:

Centralized Control: Central control of multilocation farms assisted the client management in streamlining the day to day operations aligning with their business goals.

 Good Agriculture Practices (GAP): FarmERP helped the client accord to the Good Agriculture practices (GAP) which are a mandate for food safety initiatives across the globe and its certification.

 Reduction in Inventory levels:  FarmERP ensured optimum utilization of inventory is done. Client experienced a 10 % reduction in their inventory usage after FarmERP implementation.

Human Resource Optimization: Client successfully improved the HR productivity across all levels. Effective utilization of labour forces resulted in significant cost benefits.

Traceability: FarmERP framework helped client to establish Farm to Forktraceability

 Post Harvest Loss Reduction: Client through FarmERP‘s post production module was able to identify post harvest wastages and lowering rejection rates.

 Modular Approach: FarmERP has a unique modular design that enabled client to further structure their business and move towards a more corporate way of farming.

 Higher Economic Returns: Client has experienced higher economic returns post implementation of FarmERP as it has increased the efficiency, productivity and quality through stringent cost control mechanisms.

The client appreciated the easy & structured training plan of FarmERP for its local  Omani manpower .
 Through this implementation, our client made substantial improvements in the areas of farm efficiency, productivity and quality. As a result, client has been able to streamline its operations and garner higher return over investments. In Particular, the innovative farm planning module of FarmERP has been of extreme help to client as now they can plan & budget for their entire Agri operations and inputs respectively well in advance.

Achieving Sustainability via FarmERP  

Sustainability is vital to the future success of any business; it has a pragmatic and profound impact on the strategy and operation of Agri business companies today. Our research revealed that client can drive significant business benefits by achieving sustainability.
Reaching sustainability through FarmERP boosted both top and bottom line performance thereby strengthening the balance sheet, this strategy that FarmERP promotes drove value across a number of dimensions for Client:

Revenue Generation : from new products, services and markets

Cost Control: Resource efficiency, lower inventory use and water & manpower minimisation.

Building trust: Enhancing brand value and promoting a positive culture amongst the organisation and other stakeholders.

FarmERP encourages creation of sustainable operations for any organization using the following model as shown below:

Client after FarmERP implementation is now reaping the benefits of its unique features and is enjoying the sustainability it helps create.

Wednesday, 13 June 2012

Get ready for IT mediated Farming

Can you imagine a software tool to improve on farm productivity and profits? Can a grower plan and schedule his/her on farm activities using a software for better crop management ? How IT can help optimize your spending on agricultural inputs and human labour ? Can a software solution help grower take instant decisions? Can one drill down to complex  farm data analysis ? Can a software tool make farm management a much easier job ?

Whether you like it or not, but if you are involved in farming, you have no choice but to adopt to IT enabled farming in near future. Difficult to believe isn't it ? Fine. Just imagine working in office without MS Office or imagine an architect's office without AutoCAD. Can you?

Get ready to see a 360 degree shift in next 8 to10 years, in a way farming is practiced today. Advanced information & communication technology mediated agriculture is the future.


Watch this interesting video..