Rural Sourcing Benefits From Digital Agribusiness Solutions To Meet Global Food Needs

Tanja Reith

With the world population headed toward the 10 billion mark in the coming years, the need for healthy, sustainable and fairly produced food will increase accordingly. Rural sourcing will be integral in meeting these needs. Hyperconnectivity in business and digital transformation of agriculture processes can create a stronger operational foundation for rural sourcing. This transformation can bring affordable, sustainable agricultural production by facilitating smart, traceable solutions throughout operations from farm to fork.

Reimagining smallholder farming network management

Modern farmers are surrounded by a complex system of equipment, vendors, processors, manufacturers, and agrichemical specialists. These technologies are often new to farmers in rural areas and developing countries; however, they can assist them in becoming far greater contributors The processes involved in rural sourcing must stay in sync with increased demand and changing consumer behaviors. Smallholder farming operations can benefit immensely from food traceability and hyperconnectivity innovations. This digital transformation is set to bring agricultural production to new heights of productivity and effectiveness, with additional benefits for rural farmers.

Rural sourcing made easier with digital business solutions

Rural sourcing is an area that’s ripe for transformation through digital agriculture solutions. Current and emerging digitization processes can assist with taking rural sourcing from smallholder farmers in developing countries to new heights of viability and success. The agribusiness value chain can be effectively streamlined, improving smallholders’ lives in a range of positive ways.

For example, rural farmers will be able to connect with financial services more readily. They will have a range of opportunities that were not available to them in the past. A blend of supplier and collaborator business networks, workforce engagement, assets, and the Internet of Things (IoT) assist all of the elements of this process to work together within a digital core. While the digital core facilitates the management of all financial and contractual data, collaboration within a supplier network is also seamless throughout the entire process. Mobile advances, the cloud, and IoT all come together in innovative software solutions to manage all the crucial components of rural-sourcing digitization.

The following are some of the key areas:

  • Identify farmers and expected crop yields. Research and due diligence in a rural area are streamlined and made intuitive, accurate, and efficient.
  • Broadcast prices and plan logistics. Keeping all relevant parties abreast of pricing considerations and key processes is fully automated, as are the processes themselves.
  • Consult and train farmers. Getting rural farmers up to speed and at top efficiency is also enabled with software solutions.
  • Record quantities and qualities. Full tracking of products from farm to fork is easier than ever with digital agriculture. Both quantities and full descriptions can be included.
  • Truck loading and offloading. Hyperconnectivity of the processes involved in digital farming ensures full food traceability until it reaches its destination – and at every phase along the way.
  • Mobile data exchange/track and trace standards. Data can be exchanged rapidly while on the go and kept up to date for all parties involved. Information, correspondence, and productivity data are always readily accessible, as is key information about products that are en route.
  • Mobile and SMS payments. All financial aspects of digital farming, including SMS payments, financials, and controlling, can be effectively managed with software solutions.

Processes involving integrated sourcing for crops or commodities from rural areas assist farmers by making training and best practices available. Tracing shipments in line with area and industry standards is also supported. It all starts with a direct connection to local farmers and allows for the accurate tracking of the resultant products to ensure efficiency. Digital farming can bring it all together. Transparency of origins is improved as well as the settlement process, reducing fraud risk. The hyperconnectivity of digital farming allows for more effective food traceability, more efficient farm operations, better food safety and quality, and an overall more beneficial experience when working with the rural farmer.

With effective rural sourcing management, everyone wins

Businesses implementing digital farming can more readily and consistently provide sustainable processes and positive working conditions. Farming practices can more easily be kept in line with fair trade labels and other key standards and certifications.

Learn more about digital transformation for the agribusiness industry

Tanja Reith

About Tanja Reith

Tanja Reith is a solution manager for the Agribusiness vertical in the Industry Cloud organization at SAP. She has over 15 years of experience in solution management and go-to-market roles for enterprise software, engaging closely with customers and partners across different industries such as agribusiness, consumer products, and financial services. Tanja’s ambition is to drive shared value resulting in business value to our customers while making a social impact and improving people’s lives.