How can we reduce our transport costs to compete with fresh and cost-competitive vegetables coming from Malaysia via truck?
Batamindo Green Farm
Batamindo Green Farm is the first large scale hydroponic greenhouse farm situated in Batam, Indonesia. Designed and constructed with sustainability in mind, the farm aims to produce high quality and affordable vegetables with efficient usage of resources such as water, energy and generate minimum waste. The produce is sold both domestically in Indonesia and internationally via Singapore.
As a new business, Batamindo Green Farm’s focus is on producing safe and fresh produce. They have little experience in the logistics space. let alone in designing a nimble end-to-end transportation solution.
Very quickly, they faced several challenges. Batamindo Green Farm needed to get their produce to market fast with low wastage, maintaining the freshness of their produce while extending the produce’s shelf life. The company needed to reduce the lead time from farm to table – but this was a formidable feat for a young company.
To add to their worries, the transportation cost of moving their produce from Batam to Singapore was very high. Batamindo Green Farm needed to reduce its transport costs in order to stay market competitive.
PSA Cargo Solutions swiftly acted to help Batamindo Green Farm optimize and elevate their logistics workflow.
To ensure that their produce always arrived at their destination fresh, PSA Cargo Solutions helped the company to set up a seamless farm-to-store Cold Chain Solution. Batamindo Green Farm is also exploring to use CALISTA™, which will provide them with competitive freight pricing, trade visibility and control tower functionality.
On top of this, Batamindo Green Farm benefited from PSA Cargo Solutions’ expertise in cross-border trade compliance as well as good working relationships with government agencies in Singapore, helping them to get their produce into Singapore safely and reliably.
Batamindo Green Farm had its first trial shipment in August 2020, to dry run the operational process. This included picking, packing, transporting, clearing Customs, Singapore Food Agency (SFA) checks and delivery to final customers in Singapore.
From the first shipment, PSA Cargo Solutions were able to arrange pick up of the laden container from Batam in Indonesia, and get it to Pasir Panjang Wholesale Centre, Singapore in time for the SFA checks on Day 1. This meant that the total lead time was 24 hours from Door to Door, inclusive of customs clearance at both sides.
The company’s produce arrived in peak condition, and Batamindo Green Farm received good feedback on the freshness of its product from buyers, which greatly increased the potential of its sales.
With a strong start and good working relationship, PSA Cargo Solutions and the client continue to exchange communications on process improvements, as well as ideas on how to optimise future shipments. Batamindo Green Farm has appointed PSA Cargo Solutions as its exclusive Logistics Service Provider (LSP), a nod to the value created by PSA Cargo Solutions for the young company.