Category Archives: Case Studies

Use Cases

How Retailers Can Better Manage the Impact of The Messy Middle

The Challenges of Managing the Messy Riddle

In the AgriFood industry, it is difficult to track fresh produce along the supply chain due to disconnected visibility. Because of the multiple players involved, critical data regarding product quality is often not shared efficiently between stages in the supply chain.  

Often, buyers and retailers have no visibility on fresh produce products during pre-shipment. Quality issues will only be raised upon goods arrival, making it challenging to ensure consistently good quality supply. Receiving poor quality produce results in rejection-related loss of sales and food waste that can easily amount to thousands of dollars. 

Food Waste Generated by Retailers Worldwide 

In the US, grocery retailers generate a whopping 13% of total food waste, totalling a 10.5 million tonnes that go into landfills annually. Meanwhile, in the EU, supermarkets account for 5% of the food waste problem, sparking a pledge by the EU to cut food waste in half by 2030. 

In Singapore, a central warehouse of a supermarket chain rejects about 15 to 20 pallets worth of fresh produce every day, typically due to not meeting product quality specifications agreed upon with suppliers. Each pallet can contain anywhere between 500kg and one tonne of produce.  

Sources: The Straits Time, Food Print, Global Citizens

How Receiving Poor Quality Fresh Produce Costs Retailers 

A Container of Fresh Produce can value between US$50,000 to US$150,000. When Retailers receive fresh produce that does not meet their product quality specifications, it negatively impacts their inventory and sales. 

  • Loss in sales – where the rejection of fresh produce leads to a decrease in their stock count and inability to fill the floor  
  • Incurred costs not recovered – especially during the Covid-19 pandemic, the rises in freight costs are at an all-time high making goods rejection even more costly 

Sources: Sourcing Journal

Poor-Quality Grapes Rejected at Retail-Level

High-Cost of Poor Quality Produce

In a typical fresh produce trade, buyers and retailers have no visibility on the conditions of the goods that were packed and loaded pre-shipment. This makes it difficult for them to efficiently respond to inventory changes caused by quality issues. 

Based on a Real-Life Case Study on Moving Fresh Produce

  • Programme for 15 containers of fresh grapes from supplier to a supermarket buyer 
  • Lack of visibility on pre-shipment quality from the supplier to retailer 
  • 8 out of 15 containers rejected due to quality issues and poor container unloading conditions 
  • Inefficient communication between Quality Control team and Commercial team regarding quality 
  • Loss of sales from 8 containers amounted to over USD$520,000 
  • Entire programme had to be cancelled and discontinued 

No Data, No Visibility

Often, retail stores receive goods that do not fulfil order specifications or products that have some form of quality issues. Moreover, the defects are only known when the fruit or produce has arrived due to a lack of product visibility along the supply chain. This makes trade managing fresh produce challenging for retailers: 

  • Unable to see pre-shipment product quality and container loading 
  • Unable to quickly respond to inventory changes due to rejections from quality defects 
  • Unable to communicate defects easily and effectively between internal teams 

Introducing DiMuto’s Solution

DiMuto’s 8 Product Features

See the full picture with Insightful Trade Data 

From Produce, Trade to Market, DiMuto AgriFood Trade Solutions have 8 key Product Features that help you gain visibility of the in-betweens in your supply chain.

DiMuto’s All-In-One Platform

An all-in-one, farm to fork platformOur 8 Product Features include:  

Farm Management 

DiMuto Maximize farm efficiency and profitability, read more. 

Production Management 

DiMuto Organize, track and trace your production, read more. 

Trade Management 

DiMuto ensures that you are in control of your trades with full visibility, read more 

Inspection & Standards Management 

DiMuto Organise, digitize and verify product quality, read more. 

EmVend Marketplace 

DiMuto helps you to Enter new markets and grow your exports, read more. 

SMART Marketing 

DiMuto helps differentiate your brand with traceability, read more. 

Payment Management  

Stay on top of your trade payments & settlements ,read more. 

Financial Services 

DiMuto helps to protect your trades with insurance, read more. 

How DiMuto Helps

DiMuto’s Pre-Shipment Quality & Trade Info

DiMuto’s Inspection Module

DiMuto makes all parts of the trade easily visible and accessible to relevant teams within the Retailer. With Trade Management, the commercial, QC, shipping team can access pertinent trade documents and data. 

DiMuto’s Inspection and Standard Management

DiMuto Inspection Management helps digitalize the QC process and allows a more efficient way to standardize, record and evaluate quality inspections for optimal product quality.  

DiMuto Creates Trade Visibility for “The Messy Middle” 

DiMuto’s Accessibility of Pre-Shipment and Post-Shipment Quality 

With DiMuto, Retailers can now enjoy accessible visibility of pre-shipment and post-shipment quality to better manage any potential loss of sales 

  • Pre-shipment product quality down to every single carton easily accessible to commercial team 
  • Trade information, documents and actions of each trade seamlessly recorded and presented in timeline view 
  • Post-shipment product quality efficiently captured and communicated between QC, commercial and retail teams 
  • Dashboard view of Inspection Management to ensure optimal product quality and vendor performance 

Read more on our Real-Life Case Study on Receiving Poor Quality Fresh Produce At The Retail Stage: Receiving Poor Quality Fresh Produce at Retail Level

If you are interested to learn more about how DiMuto helps Agri-Food businesses leverage on an increased visibility of Pre-Shipment and Post-Shipment Product Quality, please reach us here or drop us an email at sales@dimuto.io. 

The Benefit of Truth – Moving Citrus with No Visibility

DiMuto recently digitized US oranges that landed in Thailand and helped create a new level of visibility for the citrus trade. Read on to find out how did DiMuto help to solve the challenges of moving produce with no visibility.

The Challenge: Resolving Trade Disputes

What happens in the fresh produce trade every day? Currently, global produce trade is being conducted with little to no visibility of the supply chain, making resolving trade disputes over quality issues an inefficient process that consumes considerable time and manpower spent on gathering, collating and verifying information related to the trade.

The Messy Middle of Global Produce Supply Chains

Today, global fresh produce supply chains are extremely complex. This results in a disconnected visibility of the supply chain where companies are unable to track products as they move across borders. The lack of full visibility creates what is known as the “Messy Middle” – where miscommunications, misinformation, and trade disputes thrive due to the lack of data and information flows.

Having to Rely on The Benefit of The Doubt

With the lack of visibility in this “Messy Middle”, buyers and suppliers of fresh produce often have to rely on the benefit of the doubt in each trade transaction when something goes wrong. Because information is found over social messaging apps, emails and their individual ERP systems, it is often difficult to have the whole truth of the situation.

This makes it more difficult to create trust and long-term partnerships, especially with new buyers or suppliers.

The Messy Middle Nightmare Begins – “Your Oranges Have Snowballs”

An order for a container of oranges was placed by a fresh produce importer in Thailand to a citrus supplier in the US. This was a first-time order between the buyer and the supplier. Unfortunately, there ended up being a delay of 10 days in the shipment arrival date, which caused mould and snowballs to occur on the oranges, as well as moisture-damaged carton boxes.

Traditionally, the buyer would send the photos of the cartons on Whatsapp. With just Whatsapp photos, it is difficult to verify the information, thus dragging out the trade dispute resolution process.

No Data, No Visibility

Often, buyers and importers receive goods that do not fulfil order specifications, or products that have some form of quality issues. Moreover, the defects are only known only when the fruit or produce have arrived due to a lack of product visibility. This makes trade dispute resolution challenging.

For this citrus trade, the Thai importer was:

  • Unable to see physical condition of product until arrival
  • Unable to show full extent of damages
  • Unable to prove when goods were received

This becomes a huge problem, especially when each container of fresh produce can easily value from $50,000 to $150,000.

Creating The Benefit of Truth

Created by trade for trade, DiMuto brings visibility to the agri-food trade, bringing the benefit of truth to players in the food production ecosystem.

Using the DiMuto 4T Suite Solution, a 4-part trade technology solution combining blockchain, AI and IoT, DiMuto digitalizes the agri-food supply chain for data visibility and trade transparency, aiming to solve the industry’s various challenges such as food waste, food safety and food sustainability.

The DiMuto 4T Suite Solution creates traceability for every single fruit as they move through the supply chain by capturing important data at key supply chain stages. Individual products and cartons are tagged with DiMuto QR codes to assign each one a digital identity. These products and cartons are then digitalized through DiMuto’s proprietary Digital Asset Creation devices (DACky). Buyers can then use the DiMuto Receiver App to acknowledge the receipt of goods and provide feedback, all recorded on the DiMuto Platform to truly close the supply chain loop on one single platform. With the visibility provided by data captured as the product moves through the supply chain, DiMuto helps to reduce disputes over quality and creating trust amongst trade parties.

Easily track & trace every single carton and every single produce for all your produce trade using DiMuto 4T Suite Solution

DiMuto helps provide increased supply chain visibility for both suppliers and buyers:

  • Receipt of goods and feedback done on a single platform
  • Able to track quality issues down to individual cartons
  • Easily access product photo and related trade documents

An Evidence-based and Data-backed Trade Dispute Resolution

Using our solution, the Thai fresh produce importer was able to efficiently show the full extent of the damages and quality issues for all the affected cartons on one single platform, effectively speeding up the trade dispute resolution process.

DiMuto 4T Suite Solutions allows the tracking of all trade information, including product quality information, to be done on one single platform. The information regarding each trade is shared between the buyer and the supplier, giving both the benefit of truth. Importantly, shipping information, trade document information as well as product quality information can be found all on the DiMuto Platform.

On the buyer’s side, DiMuto Receiver App allows buyers to record issues easily and provide proof of quality issues on one single platform. Every single carton with quality issues is tracked along with visual evidence showing the poor physical condition of the fruit, as well as the acknowledgment of goods being received. This helps buyers to prove what is going on on their end across the world, and for suppliers to verify the story.

This helps to facilitate trust and creates an evidence-based trade dispute resolution process.

If you are interested to find out how DiMuto can help your business, please reach us here or drop us an email at sales@dimuto.io.

Download our full case study PDF here.

A Tale of Two Truths – Moving Avocados with No Visibility

DiMuto recently digitized avocados from Peru coming into Singapore and helped create a new level of visibility for the avocado trade. Read on to find out how did DiMuto help to solve challenges of moving produce with no visibility.

The Challenge: Operating in The Land of The Blind

What happens in the fresh produce trade every day? Currently, global produce trade is being conducted with little to no visibility of the supply chain, leaving plenty of room of mistakes that create a heavy burden of proof faced by suppliers when things go wrong.

Global Popularity of the Avocado

The avocado is one of the most popular fruit in the world. In 2017, FAO estimates that the global production of avocados reached 5.71 million tonnes.

Avocados are grown mainly in the Southern hemisphere and have to be transported thousands of miles to consumers all over the world – In 2018, according to FreshPlaza, the world imported 2.5 million tons of avocados worth $ 6.1 billion dollars.

Ripeness is critical for fresh avocados

Due to the transit time, it is essential for avocados to be transported in optimal cold chain conditions to maintain freshness of the fruit that can extend the shelf life of avocados by 2 weeks.

Avocado transportation differs for each market, and for different seasons, with recommended storage and handling temperatures ranging between 3.3°C – 6°C from Mission Produce. Low maturity fruit will maintain its quality and shelf life at slightly warmer temperatures such as 5.5°C whereas cooler temperatures around 3.3°C will extend shelf life of ripe avocados.

Ripeness is determined visually with the skin colour and markings on the avocado. Buyers would need the avocados to be as green as possible. Visual inspection of skin colour is done to determine freshness and there is typically a tolerance of est. 5 – 10% for markings and spots.

The Messy Middle Nightmare Begins – “Your Avocados Are Too Ripe”

For the avocado, a hugely popular fruit, tonnes and tonnes are moved across borders every day with no visibility once it leaves the packinghouse.

Thus, it is not uncommon to end up in trade disputes similar to the situation that our Peruvian supplier faced:

At the buyer’s request, the supplier submitted photos of the carton of avocados that they were selling to the buyer through the Whatsapp Group they were in. The photos showed that the avocados were all green and that the pellet was in perfect condition.

However, upon arrival, the Peruvian supplier received photos showing that the avocados were too ripe, and that the pellet was damaged, potentially causing bruising and damage to the fruit.

No Data, No Visibility

Suppliers are unable to show what, where and how the trade went wrong. With no data, suppliers often bear the cost of such errors.

For this avocado trade, the peruvian supplier was:

  • Unable to verify when the good was received
  • Unable to verify which carton had the issue
  • Unable to verify if damage was done by logistics 3rd party

Such trade disputes can cost suppliers up to 5-10% of every trade.

Becoming The One Eyed King

Created by trade for trade, DiMuto brings visibility to the agri-food trade.

Using the DiMuto 4T Suite Solution, a 4-part trade technology solution combining blockchain, AI and IoT, DiMuto digitalizes the agri-food supply chain for data visibility and trade transparency, aiming to solve the industry’s various challenges such as food waste, food safety and food sustainability.

The DiMuto 4T Suite Solution creates traceability for every single fruit as they move through the supply chain by capturing important data at key supply chain stages. Individual products and cartons are tagged with DiMuto QR codes to assign each one a digital identity. These products and cartons are then digitalized through DiMuto’s proprietary Digital Asset Creation devices (DACky). Buyers can then use the DiMuto Receiver App to acknowledge the receipt of goods and provide feedback, all recorded on the DiMuto Platform to truly close the supply chain loop on one single platform. With the visibility provided by data captured as the product moves through the supply chain, DiMuto helps to reduce disputes over quality and creating trust amongst trade parties.

Easily track & trace every single carton and every single produce for all your produce trade using DiMuto 4T Suite Solution

DiMuto helps provide increased supply chain visibility for both suppliers and buyers:

  • Receipt of goods and feedback done on a single platform
  • Able to track quality issues down to individual cartons
  • Easily access product photo and related trade documents

Using our solution, the Peruvian avocado supplier is able to show that they did indeed sell avocados in good condition to the buyer by tracking the product photos on our DiMuto Platform.

If you are interested to find out how DiMuto can help your business, please reach us here or drop us an email at sales@dimuto.io.

 

Download the one page summary of the case study here.

Download our full case study PDF here.

The World’s First Blockchained Durian

DiMuto recently digitized and blockchained the world’s first durian for one of our customers in Thailand, Queen Frozen Fruit. Queen Frozen Fruit is Thailand’s largest fresh durian exporter and frozen durian producer.

The Growing Appetite for Thai Durians in China

The Chinese market has seen a rapid increase in demand for durians in the last few years, with the total value of durian imports being worth as much as US1.1 Billion in 2017. This huge spike in demand could likely be attributed to the growing numbers of Chinese consumers travelling to Southeast Asia region, where durians are seen as a delicacy. Queen Frozen Fruit has been ramping up operations to meet this growth, having added a brand new factory to their portfolio in October last year.
Fresh Durian at one of Queen Frozen Fruit’s 14 packhouses
Thus, with both increased demand and expanding operations, it is even more crucial for Queen to have the ability to efficiently and consistently track the 10 million durian products passing through their domestic operations to international networks every year.

Digitizing Durians with DiMuto DAC For The Queen of Durians

Following a comprehensive consultation, DiMuto successfully assisted Queen in digitalizing their fresh durians, turning individual fresh durians into a unique Digital Asset with minimal workflow disruption through the DiMuto Digital Asset Creation (DAC) system. Our DACky systems are designed to be immediately deployable and easily installed at packing lines without hindering the factory’s daily operations. DiMuto DACky systems come in three forms – the handheld version for factories that need greater mobility, the Lite version for factories that do manual packing, and the Automated version for automated packing lines. After the consultation, we deemed it was most appropriate to utilize a mixture of the handheld version and the lite version for Queen. Our DiMuto team went down to the packhouses in Thailand to train the staff and ensure a smooth deployment of our DACky systems.
Our DiMuto team working with the ground team at Queen
With DiMuto DAC, each durian is tagged to their respective carton, and a photo of the durian is then captured at the point of packing. Every individual durian has a unique identity, making them trackable and traceable through our DiMuto Trade Track & Trace Platform as they move through the supply chain.
DiMuto DACky Lite being deployed at Queen’s frozen durian factory
With the Trade Platform, Queen is able to see product information such as product photo and health certifications, sales order, transportation documentation that are associated with every single durian and batch. This makes traceability much easier for Queen to have the overall picture of each durian trade, compared to having records on different systems that do not talk to each other. Bringing More Than Trade Visibility Besides end-to-end visibility of the each durian trade, Queen is also able to share blockchain-verified data with relevant parties of the trade on a single platform. This means Queen’s trade partners are able to see important information such as the product photo of each durian showing their quality at the point of packing, as well as health certificates and certificates of origins that have been blockchained on our platform. This helps Queen to reduce trade disputes over quality and strengthen trust with its customers and trade partners. Not only so, because of this digitisation and subsequent trade supply chain visibility, Queen has also been able to access trade financing opportunities provided by DiMuto and our trade financing partner, Havenport Investments. Previously unbanked and unable to get financing from traditional financial institutes, our trade solutions have offered our customers groundbreaking financing solutions. The DiMuto team is also working closely with Queen to get the most out of our 360 trade solutions platform, such as Marketing services and Data Analytics services as well.

Project Garuda – Record Time Dispute Resolution with DiMuto Track & Trace

Project Garuda – 4T Trade Dispute Resolution with DiMuto

Project Garuda is evidence of DiMuto’s record time dispute resolution process through our 4T Model. A packhouse on DiMuto’s system was able to track and trace its fuji apple as it moved through the global supply chain, subsequently being able to show blockchained proof of the quality of its fuji apple at the point of packing.

 

4T Trade Dispute Resolution with DiMuto

DiMuto Track & Trace solutions are centred on the 4Ts – our trade solutions platform must have  Trackability, Traceability, Transparency therefore building Trust and enabling Collaborative Commerce.

TRACKABILITY: Digital Asset Creation (DAC) and IoT tracking condition of product at each supply chain stage

TRACEABILITY: Retrieving immutable records of condition of products at specific points of supply chain

TRANSPARENCY: Sharing of product information, condition and documents on blockchain with relevant partners

TRUST: Enabling Collaborative Commerce

A Verified Picture Speaks A Thousand Words

A local distributor in Indonesia claimed that a fruit importer had sold them apples with spots using these photos.

The conventional way of raising quality issues can be through WhatsApp, WeChat and emails. These disconnected communications methods made tracing back relevant documentation difficult, and it was also impossible to ascertain the authenticity of such product photos from customers.

However, a simple scan of the DiMuto QR code of each carton allowed the fruit importer to efficiently resolve this dispute over quality of products sold. By scanning the QR codes, the fruit importer was able to quickly pull out product information to help find out the truth. DiMuto has thus revolutionzed the trade dispute resolution process by reducing the burden of proof on sellers through our blockchain platform.

The blockchained photo of the packed apples taken at the point of packinghouse and verified associated trade documents revealed that the fruit importer was not liable.

Instead, it showed that it was because of the local distributor’s lack of cold storage facilities that led to the apples developing spots.

Thus, DiMuto is able to effectively reduce the burden of proof on produce packhouses and importers to prove that the quality of goods at the point of selling fits the purchase requirements. This is only because of Digital Asset Creation (DAC) where we are able to digitize individual fruits and tag them to cartons and create and collect data regarding the product as we track it along the supply chain.