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By adding IT solutions, we want to contribute to maintaining the global pioneering role of the Dutch fresh produce industry. That is why we continuously look at trends, the influence for the industry and how we deal with this as a JEM-id. In upcoming updates we will take you along in our vision on various trends, starting with: "specialization".

Fresh produce companies are increasingly specializing

One of the trends we see more and more often is "specialization". In order to be able to continue to add value, it is necessary that companies continue to distinguish themselves. In particular, we see an increase in the field of brand formation among manufacturers and also experience that the sector is undergoing a change in which the trade chain evolves into a trade network.

Branding
More and more companies are paying more attention to the marketing of brands in the fresh produce industry. Where this was already the case in the past for (niche) products such as cresses, herbs, snack vegetables and exotics, products such as tomatoes, peppers and cucumbers are increasingly positioned as brands with matching consumer packaging. Growers and trading companies try to distinguish themselves from the competition and indirectly (via retailers) to build a connection with end users; the consumers. Customer experience plays an important role in this. Companies are thinking carefully about how to reach these end users in the right way. Complete campaigns are created to increase brand awareness among this target group and to strengthen the relationship. Offline, this mainly happens by having branded products tasted at events and sharing tips, such as recipes. Online this is done through websites, mailings to consumers and sharing tips on social media. (Micro) influencers are also increasingly playing an important role. Think of food bloggers or Instagrammers who share dishes with specific "brand products" and thus reach the right target group. As more and more consumers become "fans" of the brand, demand is created, making it attractive for supermarkets and wholesalers to buy and sell these brands.

From trading chain to trading network
Another topic we are following closely is the shift that appears to be taking place in the trade chain. Products are currently moving from producer to retail through various chains (for example from grower to trading company, to exporter, to supermarket / wholesaler).

An interesting development is that due to, among other things, the continuing increase in scale and internationalization, the trade chain is now consisting of fewer links. Because the lines are getting shorter, fewer transactions take place before the product reaches its final destination. Companies that are often in this chain, but not as producers or retailers, see the need to offer unique services in order to continue to add value and remain part of the trade chain. The term "service provider" is regularly used for this, which seems to be an appropriate name for players who increasingly specialize in services to transactions in the chain.

This form of specialization manifests itself in particular in activities related to, for example, logistics, repacking / packaging, ripening, inspection, storage / transhipment and order picking. We see companies that previously engaged in multiple activities such as trade, export and packaging, increasingly choose one direction, which creates specialists. For example, production specialists have various packaging lines and they also become experts in the field of packaging materials, freshness and vulnerability of products, as well as the sustainability and environmental impact of these packaging.

In the field of logistics, fourth party logistics (4PL) parties are increasingly emerging that unburden other companies in the field of chain logistics. These companies are looking for, for example, the most efficient or most sustainable way to handle the logistics chain of one or more transactions. They take care of transport planning and / or stock management, for example, without having transport or warehouse equipment themselves.

The shift in roles of companies in the sector causes the well-known trade chain to slowly change. A trading network is created in which each player adds unique value to the chain:

What does JEM-id do to respond to specialization and partnerships?

We focus on solutions that provide control over daily processes in the fresh produce industry and on offering links with partners who excel in their field. When different service providers each add their value, it becomes increasingly important that the associated administration is clear and can be easily processed without having to be retyped by these different parties. To support the collaborations and communication between the various fresh produce trading companies and service providers, we have developed the digital link FreshBabel Messenger. This link makes a network of digital connections available. This allows companies to exchange messages with each other, and directly process them in the software system. This includes the automatic processing and sending of messages regarding orders, shipments, invoices, logistics, etc. Retyping information from e-mails, PDFs, Whatsapp, telephone conversations and Excel sheets is not necessary for the most part, which saves time and typing errors.

We also think that many changes will take place in the commercial processes. Online sales are increasing every year and sales via (B2B) web shops can no longer be ignored in many sectors. In the floriculture sector, 70-80% of the trade is now also online. A good B2B webshop or trading platform ensures that customers can easily order and have access to real-time information about stocks and personalized prices.

To be prepared for this, we started FreshBabel Supply, so that various pilots and experiments can be used to respond to movements and changes in the sector. FreshBabel Supply offers the opportunity to provide buyers with direct insight into the range and supply of various fresh produce suppliers. Suppliers can offer in-stock products with customer-specific prices here, which will then be updated automatically and in real-time as soon as orders are placed digitally. The associated order processing connects seamlessly with software packages such as GreenCommerce.

We would like to invite you to exchange thoughts on the above topic. If you would like to contribute ideas or if you have any questions, please contact Remco Koornhof via: remco@jem-id.nl.