Key challenges
Fragmented food supply chain: The existing food supply chain is highly fragmented, with a significant reliance on middlemen. This fragmented structure creates inefficiencies and leads to a lack of mutually beneficial partnerships for farmers.
High post-harvest losses: An alarming 40% of the produce is lost after harvest, making a substantial portion of the food supply unavailable to consumers. This high level of post-harvest loss presents a significant challenge for both the farmers and the supply chain.
Establishing best practice supply chain: Farmbyte aimed to establish a best practice supply chain starting from Johor. This required a comprehensive overhaul of the existing supply chain processes to ensure efficiency, cost-effectiveness, and sustainability.
Our approach
TMX was engaged to evaluate what options exist for the development of the CPPC network that would provide a world-class customer experience for both farmers and consumers while addressing the challenges posed by the fragmented food supply chain. These actions were undertaken to deliver results for Farmbyte:
- We initiated the process with a rigorous feasibility study and industry benchmarking, gaining a deep understanding of the landscape.
- Location analysis and network evaluation were crucial steps, laying the foundation for what was to come.
- We meticulously crafted the design of the CPPC and developed robust business cases to ensure a sustainable and efficient network.
- TMX introduced a best-in-class user experience with midstream digital solutions, to ensure a seamless process from the CPPC facility to end consumers.
- Concept layouts and detailed costing were provided from the ground up, offering clarity on both capital and operational expenses.
- Collaboratively, we proposed the operating model and organizational structure for the food hub, setting the stage for effective management.
- Through our partnership with Baldwin Boyle Group, we integrated a comprehensive marketing and communications plan into our strategy, ensuring alignment with all stakeholders.
The results
By outlining a top-tier supply chain proposal that emphasizes temperature control and grading automation, TMX has paved the way for significant reductions in food waste while elevating the value for all supply chain participants.
Additionally, TMX’s clear vision for the CPPC not only gained support for our client's business case but also brought their broader strategy to life.
This work has now transitioned to detailed design and procurement covering both physical and digital elements of the supply chain.