What Are The Challenges For Enterprises In The Agriculture Industry?

Agriculture has always been a key industry in Vietnam. In recent years, despite many difficulties due to weather, epidemics, competition, etc., the Agriculture industry has still made great progress and made great contributions. to Vietnam’s GDP. Along with that, DMS software will also help a lot.

The situation of the pesticide and plant protection industry in Vietnam

According to research and evaluation by the Institute for Strategic and Competitive Studies in collaboration with Vibiz., the market for pesticides in Vietnam is very large; the Agriculture industry annually uses from 7,000 to 10,000 tons of medicine. This is also the reason a series of large enterprises in Vietnam have been planning to invest in this market.

Currently, the country has over 200 pesticide enterprises, nearly 100 production factories, and more than 30,000 product distribution agents. From the above figures, we can see that the market for distribution of pesticides is very large, On the other hand, consumers are more accurately said to be farmers distributed in rural areas, so it requires production enterprises to have a system widely distributed and covers border regions.

The market for pesticides has always been fertile, and enterprises are constantly increasing their competitiveness and distributing a wide distribution system. Besides, the pesticide distribution market still has many challenges that need to be understood and solved by enterprises to increase efficiency in business.

Challenges in Distribution Agriculture Industry

For agents

• Since the Customers are mainly Farmers, they make purchases on debit and pay at the end of the season. On average, the rice area has about 4 months of planting time, the industrial crop area has an average debt of 1 year, and the average debt-eating area is 4-6 months. Due to a large amount of debt, the level 2 agent has to “burden” the debt to the Customer, while the level 1 agent has to “burden” the level 2 agent and the risk of debt repayment is quite high.
• Product loyalty is not high due to crowd psychology, because agents always have difficulty depending on a “key person”.
• Farmers do not know much information and do not follow the correct process. When there are no good results, they blame the poor quality product.

For Business Owners

• Financial risks: Agents are always looking for ways to extend debts, or use capital to focus on companies where agents are focusing on selling with a large proportion, leading to increasing liabilities…
• Uncontrollable inventory at agents: agents always tend to keep business goods secret, making it difficult for sales to check inventory, and disperse goods at many warehouses. As well as not controlling the flow of markets and goods.
• It is not possible to manage the price of the product: agents have an “intimate” relationship, so it is easy to see the common ground price being pulled down. Agents want to achieve the program to register with the company, ready to “hug the goods” and then sell at a lower price than the market.
• The distribution market cannot be expanded: agents must have great economic potential, a high ability to invest in debt for customers, should limit the entry of new individuals into the market, limit the level of coverage, heavily dependent on the existing agent system.
• Farmers are no longer “interested” in organizing events that provide information about products during events. It makes it difficult for businesses to connect with farmers and introduce products to farmers.
• If you can’t control the amount of inventory, or the selling price at the dealer, use DMS system management software.
• Operating costs are increasing: in addition to large discounts, businesses also have to “give up” expenses for events, holidays, sales & marketing, etc.
• Lack of human resources: the growing market means that the company’s distribution system must cover the market. Currently, investing in human resources to take care of agents is a big difficulty for businesses, the industry’s human resources besides meeting sales skills also have to know technology.

Solutions for the Agriculture Industry

In the context of complex and fierce competition in the agricultural distribution industry, business owners are looking for the most suitable direction. Here are some solutions that businesses can refer to and apply:

• First: Promote the development of new products: The agent characteristics are always looking for “exclusive” products, so new products will be “weapons” to increase the agent’s loyalty to the Enterprise.
• Second: Building a distribution system development model: when there is a clear development plan for each level as well as a development model for each agent level, it will help business owners get orientation, strategy, and reasonable business objectives.
• Third: Applying technology to management: Currently, to optimize inventory control, debt management, and sales staff management. Enterprises have promoted the application of distribution system management software to management and business. The application of the software solution will support enterprises to accurately control the product’s path, control real-time inventory at agents, control real orders delivered to agents, and have a management system. employees working in the market.

Improve the working efficiency of employees, and standardize the working process from businesses to agents, to farmers. Controlling data, and having intuitive, clear, and accurate reports, helps the Board of Directors easily make the right decisions and strategies for the company. Using a distribution system management solution, helps businesses record the feedback of agents and farmers with timely and best care policies. Enhance the image of the business as well as save costs, time, and personnel in the management stage.