The service is aimed at agricultural traders and brokers who realise the value that such a service can offer their business by building trust with sellers and buyers.
This encourages repeat deals and develops strong, trustworthy and transparent agricultural trade networks. The service will also appeal to buyers who use traders or brokers to source produce and wish to introduce more transparency into the sourcing process.
The service offers a unique opportunity to re-position their business as one which is open, fair and honest, treating farmers and buyers alike with the respect and trust that will build loyalty and which in turn will lead to repeat business and long term relationships.
By using the platform, traders are creating a financial record of their business dealings which is critical in order to attract the finance required to expand and grow. By aligning the trader’s commission to the farmer price, the higher the price achieved for the farmer, the higher the commission for the trader, encouraging both parties to work together to get the best price possible.
there are a lot of hidden costs when you are doing trade. So it’s a kind of education and knowledge transfer platform that teaches you how to manage costs along your supply chain.
Perez Ochieng, Sacoma, Kenya
The service offers a safe and secure alternative to selling at the farm gate and provides complete transparency and a real understanding of the cost of doing business with larger buyers because all of the costs incurred in getting produce to the buyer are visible.
The availability of Cash on the Bag finance means that prompt payment is ensured at the time that produce is delivered to the trader’s collection point and there is no requirement to wait for payment until the buyer settles.
Best of all, if the anticipated middle costs such as transport or packaging are lower than expected, or if rejection rates are lower than predicted, any additional cash made or saved is visible on the system and is available as a bonus to the farmer.
This trading model has been beneficial because immediately I get cash, I am able to pay the people who are picking for me…I am able to get money to go and buy the pesticides and I am able to have some money left for personal use.
Samuel, smallholder farmer, snow peas, Timau Kenya
Who recognise the ever growing need for transparency in the supply chain and a growing desire to see smallholder farmers treated fairly which is often a struggle when sourcing via traders and brokers.
techfortrade’s service offers a way to achieve this, using an easily accessible tool for tracking costs and prices associated with each trade, from farmer to the buyer’s warehouse.
This accountability is becoming increasingly important to buyers.
Open Book will be able to facilitate and help to reach out to the small scale farmers, who we believe are the ones needing more help since these groups have poor access to finances, poor access to markets etc.
Burton and Bamber, buyers, Kenya
It is a good system, in terms of determining the viability of a deal and then keeping the records so for me those are very good reasons for using the system.
It also enables you to allow you to bargain, if the business is going to make a loss you can go back to the buyer and bargain with him, because it is transparent you can even tell him how the system has shown you so that you have at least the room to bargain with the buyer.
Salesforce helps us to track, and capture the data that the buyers want, the farmers want, the sellers and also other partners want, including the financing institutions.
TSS has empowered my network, my farmers and even me myself, it has brought me to a certain level.
The good thing that TSS is helping is paying them (the farmers) cash, because the moment we are paying them cash it improves their cash flow: farming is also a business, we want to be sure that the farmer is treated as a business, once we pay them cash they have a cash flow.
We have to work with the buyer and we have to work with the farmers so it is the whole value chain that we are working in.”
There is a benefit of first testing these deals with the buyer, before you go to scale because you can burn your fingers in the first deal and then you put a rope on your neck when things go wrong so the training with techfortrade helps us to work through the issues, the challenges, the problems and get things right before you really go to scale or you engage with the commercial financing.