Growing Margins & Revenue In Fresh Produce
by Antonio Palanca
February 9, 2020
0.Digital technology now defines the way we read newspapers, apply for a job, buy a car or home, get a loan or insurance, and even find partners and manage relationships. Digital matters even in unique industries like the fresh produce industry.
We are already surrounded by new companies who have been able to take advantage of the zero marginal costs and positive network effects enabled by 21st century technology and behaviours but this is only the beginning. About 92% of the worlds GDP involves physical goods and moving those goods through digital channels is a new opportunity that Booz Allen calls “hybrid ecosystems”[1] . These new business ecosystems are created by companies that combine digital business models with traditional supply chains. Australian companies like Agridigital (grains) and Auction plus (livestock) have already created new hybrid ecosystems that have released value into the supply chain and created significant value for producers, suppliers, and wholesale buyers.
Those businesses have proved that digital commerce is relevant to industries like fresh produce, and there is now strong evidence that digital marketplaces do deliver real and sustainable benefits to market participants.
Moving up the digital curve matters because business to business (B2B) digital leaders turn in stronger financial performance. According to McKinsey, companies that can embrace and leverage digital commerce generate 3.5 percent more revenue and are 15 percent more profitable than their peers[2] .
The HiveXchange is Australia’s digital marketplace for perishable fresh produce with over 100 Australian businesses trading in the marketplace.
To understand why Australian fresh produce businesses are using the HiveXchange consider the benefits as outlined in the video (attached) which will be show in the upcoming hortconnections event in Melbourne next week.
Over the last 4 years the HiveXchange has supported trading activities across a range of categories including : Pumpkin, Avocado,Onions,Broccoli,Tomatoes,Oranges,Cherries,Mango,Peach,Grapes, Rockmelon, Melon,Cucumber, Watermelon,Apricots,Eggplant,Cauliflower,Apples,Capsicum,Strawberries,Nectarines,Sweet Potatoes, Fingerlimes,Blueberries,Persimmons,Plums, and Pineapples.
To find out if this digital market can help your business contact one of our business consultants at the HiveXchange or see us at Hortconnections on stand 182. The HiveXchange digital marketplace is free to register for qualified suppliers and buyers and offers a range of unique benefits you will find no-where else.