Creating Values in Agri-Supply Chain from Land to ... · from Land to Consumers Through Computer...

Creating Values in Agri-Supply Chain from Land to Consumers Through Computer Based Control Systems

#AgTechInsight #AaronMagenheim

©2019 AgTech Insight LLC

AgTech insight is a global, full spectrum Agriculture and Technology consulting and advisory firm offering expertise to ensure success in today’s economy

From Salinas, California, USA• Ag Business Innovation Strategy

• Agriculture Technology Visionary

• Business and market planning & development

• Product integration and collaboration

AaronMagenheim

Highlights• Founder AgTech Insight + AgTech development co

• 20 yrs. - family ag irrigation business

• 8 yrs. –Agriculture Technology ecosystem

• Works with clients around the world

©2019 AgTech Insight LLC

Agriculture and Technology Expert

• Innovation growth strategies

• Ag inputs & irrigation

• Sales networks

• IT and Ag analytics

• Grower AgTech Audit

• Public sector guidance and advisory

• Strategic marketing and business planning

• Local & global AgTech ecosystems

@AaronMagenheim @AgTechInsight

• Centralization

• Blockchain

• Standardization

• Digital contracts

• Cryptocurrencies

• Visibility

• Machine Learning

• Artificial Intelligence

• Automation / Robotics©2019 AgTech Insight LLC

Trends Across The Supply Chain

Connecting the Dots

• We live in a connected world

• Billions of data points

• Sharing – data is pushed and pulled

©2019 AgTech Insight LLC

Dispersed Data Sets

• We have been collecting data

• What do we do with it?

• Who has it?

• Where can we get more?

• Need to analyze and use it

Question:

• Who has a 1, 5 & 10 year strategic plan for your

future supply chain?

©2019 AgTech Insight LLC

Data capture

Remote Sensors

GIS

GPS

Imaging

Communications / Connectivity Infrastructure

Cloud Based

Wireless Radio

Cellular

Bluetooth

WiFi

Satellite

Big Data

Aggregation

Access

Analytics

Actionable Data

Storage

Business Management

Back office / ERP

CRM

Supply chain / logistics

Brokering

Reporting / compliance

Traceability

Applications

Sensor monitoring and control

Sales and marketing

Supply / demand

Commodity pricing

Input optimization

Workforce

Integrating the Information Layers

©2019 AgTech Insight LLC

Centralizing Supply Chains

• Build a model leveraging strengths

• Take strategic steps

• Each geography has unique needs

• Learn from other success & failures

• Changing & aging workforce

• Understand global competition / trends

©2019 AgTech Insight LLC

Purpose of Centralizing Supply Chains

• Global competitiveness• Meet demands from growing middle class

– Different types of foods not grown locally

• Food security– Enough food– Safe food

• Improving yield• Reducing loss• Visibility• Labor issues - migrations to cities• Advancement of overall economy - finance

©2019 AgTech Insight LLC

• Growers

• Support structure (seeds, chemical, irrigation, tractors

finance)

• Packers, shippers, processors, cold chain, value add

• Transport / logistics

• Distribution

• Retailers

• Consumers

©2019 AgTech Insight LLC

Creating Value Throughout the Supply Chain

Grower

Test, Sell, Support

Training

Consulting / Services

Lean Strategies

Traceability

Tracking, Timing

Quality, Demand

Incoming, Outgoing,

Stock Management

Food Safety

Consumer Trends

Forecasting

Competition

Visibility

Choices

Brand Loyalty

• Strategic planning

• Optimize

• Share critical insights

• Reduced waste

• Safer supply chain

• Quicker adoption

©2019 AgTech Insight LLC

Ecosystem and Propositions

Data Collection

Predictive analytics

Machine Learning

Support

Structure

Distribution

LogisticsProcessing

ConsumersRetailers

Tech Focused on Efficiency & Visibility

©2019 AgTech Insight LLC

GrowersTech Types

• Data collection

– Real time sensors

– Remote control

– Tracking activities

– Transferring knowledge

• Predictive analytics

– Improving on cause & affect

– Machine learning

Value

Visibility into where to increase margin

Art → Science

©2019 AgTech Insight LLC

Grower Client StoryProfile: Large CA wine grape grower growing vertically

Goal: Future proof, grow vertically, sustainably

Process:

• Evaluate

• 5 year strategy

• Build a tech team

• Start in the field collecting data

• Move up through the vertical

5 Year Result: Exceeded goals

• Finished goods business growth 15X in 5 years

• International business

• BI – complete visibility across operation

• Blockchain customer traceability

• Exact $ to produce specific bottle of wine

• Reduced inputs, increased efficiencies (up to 80%)

©2019 AgTech Insight LLC

Packers, Shippers, Processors, Cold Chain• LEAN strategies

• Six Sigma

• Machine vision

• Quality management

©2019 AgTech Insight LLC

• Packaging

• Marketplaces / trading

• Automation

• Traceability

Value

• Better forecasting

• Reduced waste

• Increased product value

Transportation & Logistics

Tech Type

• Cold Chain

• Tracking

– Speed

– Location

– Temperature

– Quality

– Efficiencies

• Timing

– Loading / unloading logistics

– Customer promise expectations

©2019 AgTech Insight LLC

Value• Demand planning and

supply automation• Efficiency• Reduced overhead

©2019 AgTech Insight LLC

Distribution

Tech Type

• Tracking Inventories

• RFID

• Goods movement automation

• Stock management

• Supply / supplier forecasting

• Reduce waste

• Trading platforms

• Ugly food

• Oversupply

Value• Reduced costs• Growth opportunity• Forecasting

Retailers

Tech Types• Food security

• Food safety• Real time traceability• Manage recalls

• Track consumer trends• Higher cost foods• More value add

• Connect with consumer• Transparency• Forecasting to supply chain

• Pricing adaption• Competition – online / delivery

©2019 AgTech Insight LLC

Value• Brand loyalty / market share• Competitive buy side• Digital consumer trends

Consumers

©2019 AgTech Insight LLC

• Social media power

• Drive changing palette

• Connecting with brands

• Build brand loyalty

• Virtually travel

• Education practices

• Sustainability

Value• Feel good• Positive gastrology experience• Influence trends• Drive the future of food

Timing and Existing Structures It all depends on your timeline objectives Take the right steps

Now • Fix the fundamentals – improve the basics

• Take paper records to digital • Build advisor / support network

Near Future • Integrate data to get full picture • Set the stage

Future • Prescriptive analytics• Leverage machine learning, AI

And Then… • Start integrating advanced “sexy” tech

• Drones, robotics, autonomous vehicles etc. ©2019 AgTech Insight LLC

Support Structure

• Closer to user

• Build innovation arm

• Leverage network

• Higher margins

• Testing tech

• Local experts

• New model to consult

• Value add services

• People & equipment

©2019 AgTech Insight LLC

Lean on your local innovators to help

AgTech Ecosystem

We are currently evaluating over

3,000 AgTech companies to

produce this year’s 2019 Market

Map

Download this edition @

www.AgTechInsight.com

©2019 AgTech Insight LLC

• Not setting strategy

• Too large of steps

• Not taking into account how things are today

• Top priority for China etc.

Considerations – Mistakes to Avoid

©2019 AgTech Insight LLC

• Increased international competition

• Consolidation

• Loose traditions

• US has gone too far

• De-centralizing

How Can Our Team Help?

✓Provide Consulting and advisory services to clients throughout the ecosystem

✓We utilize our global experience and network to bring real world solutions into an industry in its infancy

✓Build customized strategy for your organization ensuring success

©2019 AgTech Insight LLC

➢Get outside evaluations & support team

➢Build short & long-term strategy

➢Doesn’t happen overnight!

➢Work with industry to regulate as needed

➢ Set rewards for innovation

➢Come to events like this and keep up with trends

➢ Set your strategy and then act!

Long-Term Success

©2019 AgTech Insight LLC

We Can Help!

WWW.AGTECHINSIGHT.COMSOLUTIONS@AGTECHINSIGHT.COM

Aaron Magenheim, CEOAaronM@AgTechInsight.com

+1-831-595-6064

©2019 AgTech Insight LLC

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