JaPang Presents Supply Chain Innovation for Food Products, Focused on Outside Java
The large opportunity to disrupt the system of providing rice, chicken and eggs as staple food for the community, is utilized by the Food Network (JaPang) to innovate to present a breakthrough in the distribution system that is empowered by technology.
In particular, JaPang serves many customers outside Java for their product and technology services. Targeting the B2B segment, this startup officially launched in April 2021.
Founder & CEO of Jaring Pangan Indonesia Benny Tjong revealed that the reason they focus on rice, chicken and eggs is because they have very large volumes. For rice alone, the market opportunity is recorded at around $22 billion per year.
“Besides on a volume basis, we see that this product has a long shelf life. Rice is guaranteed as a lifetime product, while for chicken, because we sell it in frozen form, it can have a long shelf life. Likewise for eggs, most of which have high shelf life. last for 30 days from laying eggs,” said Benny.
Forge Partnerships with Local Farmers
To provide these products, currently JaPang has established partnerships with local farmers. The hope is that they can give them direct access to the target market, which is still difficult to do.
At least 350 rice farmers have joined, 100 chicken farmers and 20 chicken egg farmers. JaPang also has 45 B2B clients in various cities.
“We also sell complimentary products such as cooking oil and sugar. All of these products are branded by us through private labels. These products are also complementary to basic food products,” said Benny.
Focusing on cities outside Java, currently JaPang claims to have covered most cities on the island of Kalimantan. Other islands that were also targeted were Sulawesi, Maluku and Papua.
In particular, JaPang has several revenue streams, namely B2B for distributors and agents, as well as B2B2C specifically for retail and their flagship initiative, “Jawara” (JApang WARungRAkyat).
Develop Champion for B2B2C
Apart from bridging the needs of distributors and agents, JaPang also helps them distribute and sell all products.
Apart from having partners in various areas and even in several cities that are included in the primary city category, JaPang will open its own depot, all of which are managed by the JaPang team.
This is claimed to be related to several future strategies for the company to develop the B2B2C segment, namely Jawara.
“We present our champion for SMEs by creating a social impact for those who want to have a business but don’t know how to start. For those who do not have capital, we will provide capital in the form of stock by selling rice, eggs and chicken,” said Benny.
He added that for capital financing apart from being provided by JaPang itself, they also partnered with financial institutions to provide this option. The hope is that more partners from other financial institutions will join JaPang to help the Jawara.
This new initiative is still concentrated in the Greater Jakarta area. However, in the future, JaPang targets to expand throughout Indonesia.
The hope is that in the first quarter of 2022, it can reach around 10 thousand champions. To simplify the process, later JaPang will manage the depots that will be opened earlier.
In the future, the depot will also function as a dark store (a retail store concept that only serves online transactions) and will adopt an omnichannel strategy that can be picked up or delivered. Currently, JaPang has 5 depots in Jabodetabek and 5 others outside Java.
“Currently the number of Jawara in Jabodetabek has reached more than 100 in number and it is estimated that it will reach 500 this month. In January 2022, it is planned that Jawara will expand to Surabaya, followed by other big cities,” said Benny.