We used our technology to create an end to end supply chain enhancement solution for actors in the Chilean biomass market. It enabled producers to reduce costs and sell their goods directly to end consumers. Within three months it became one of the largest centralized sales channel of biomass in Chile.
We received an introduction to one of the larger producers of biomass and asked them to list the pain points of their industry. The problem that they described was multifaceted and could be felt by everyone in their supply chain from the raw material producers all the way to the end consumer.
Individuals were chopping down trees and skipping the processing stages that remove moisture and contaminants from the wood. When this wood was burned it released toxic smoke hazardous to the individuals breathing it and detrimental to the environment.
2. Price Hikes
During cold months, the industry saw price hikes as high as 161%. To combat these price hikes, consumers would purchase large volumes of wood that they then had to store in not optimal conditions. Unfortunately, that often led to the wood absorbing moisture and contaminants previously removed by the processor.
3. Operational Inefficiencies
During our research process, our team physically traveled with the bioma throughout the supply chain and developed a deeper understanding of the problems introduced by the producers. We learned that producers, processors, certifiers, and retailers were spending too much of their time & money on transportation and logistical operations ultimately inflating the price of the goods they were selling.
Our team assessed the problems that we uncovered and began exploring how we could use the internet and technology to solve them. We identified the user groups being negatively impacted by the problems that we learned about and decide to build applications for each of them that directly addressed the sale of unsafe counterfeit wood, the extreme seasonally driven price hikes, and the operational inefficiencies encountered by supply chain participants. This resulted in the development of https://www.lenahoy.cl (Firewood Today).
We built dashboards for each actor in the supply chain that enabled them to prove the origin of the good they were selling and it allowed them to easily manage pickups between supply chain participants.
We also built a mobile application that allows end consumers to purchase the biomass being managed by the producer dashboards and it allowed them to schedule deliveries to be delivered their homes/offices immediately or at a later date in time.
1. Traceability + Origin Authenticity
Origin traceability and certified authenticity were created preventing the sale of counterfeit wood through our system.
2. Price Stability
Stabilized price of biomass by allowing end consumers to pre-buy biomass and have it delivered later. Producers were able to then finance future production and lower costs
3. OPERATIONAL EFFICIENtCy
31% Reduction in transportation logistics costs. Lowered cost for end consumers while increasing the profitability of producers.