From Soil to Sale with Karthik Jayaraman Co-Founder WayCool Foods

TL;DR

Vehicle is an agritech startup focused on transforming the supply chain in the food and Agri space from a supply-driven model to a demand-led model, reducing waste and improving efficiency.

Transcript

good evening everyone today we have our guest Karthik German founder and CEO of vehicle one of the large agritech startups from India thanks a lot Karthik for being here thank you it's a pleasure to be here and I wanted to thank you for creating this platform that connects all entrepreneurs into one community uh yep we hope entrepreneurs will have ... Read More

Key Insights

• 😋 Vehicle aims to convert the supply chain in the food and Agri space from a push-driven model to a demand-led model, reducing waste and improving responsiveness.
• 😘 The adoption of a demand-led supply chain can result in lower inventory, less wastage, and higher fill rates.
• 🥺 The fragmented nature of the Agri supply chain requires multiple layers of aggregation and disaggregation, leading to additional costs and volatility.
• 🚃 Infrastructure, including roads, railways, and storage facilities, is crucial for the efficient functioning of the supply chain.
• 🤩 Technology plays a key role in operational enablement and governance, ensuring accurate demand prediction and supply visibility.
• ⛓️ The financial aspect of the supply chain, including credit availability, is vital for lubricating the value chain and supporting farmers and customers.
• 🫥 Vehicle has diversified into various business lines, including fresh produce, grains and staples, dairy products, and imports and exports. Each business line benefits from synergies and specialized expertise.
• 👨‍💼 Resource allocation is done through portfolio planning, with clear budgets and allocations based on the business unit's requirements. There is a balance between in-house capabilities and partnering with specialist providers.
• 🍉 The founder emphasizes the importance of long-term growth metrics like return on capital and free cash flow over short-term metrics like revenue or profitability fluctuations.
• 🏛️ Focus, leadership development, and establishing governance and controls are essential for building a sustainable institution.

Questions & Answers

Q: What is the difference between a supply-driven supply chain and a demand-led supply chain?

In a supply-driven supply chain, the focus is on producing and pushing products onto users without considering their demand. In a demand-led supply chain, production and supply are aligned with aggregated demand, resulting in lower inventory, less wastage, and higher responsiveness to customer needs.

Q: How does Vehicle work with farmers in aligning their production with demand?

Vehicle earns the right to work with farmers by buying from them and providing demand information. They encourage farmers to align their production with long-term forecasts and follow specific practices to improve yield. By communicating demand directly to farmers, they aim to reduce wastage and improve supply chain efficiency.

Q: How does Vehicle manage the complex Agri supply chain with multiple intermediaries?

Vehicle has established collection centers, storage units, and distribution centers to streamline the supply chain. They focus on compact and automated facilities to reduce physical loss or damage of products. They also work with aggregators and retailers to ensure smooth operations and proper communication of demand information.

Q: How important is infrastructure in building an efficient Agri supply chain?

Infrastructure plays a critical role in the efficiency of the supply chain. Vehicle focuses on areas with predictable highway infrastructure and government support. They have invested in compact collection centers, storage units, and distribution centers suitable for specific product requirements. They also utilize technology from the Netherlands to improve cold storage and ventilation processes.

Summary & Key Takeaways

• Vehicle is a technology-enabled supply chain company that operates in the food and Agri space, aiming to convert the supply chain from a supply-driven model to a demand-led model.

• In a demand-led supply chain, production and supply are aligned with aggregated demand, resulting in both low inventory and wastage and high responsiveness.

• The food supply chain in India primarily works on a supply-led model, resulting in volatility and losses, and Vehicle aims to address these issues.