How Karya Mulya is improving his business with Indotani
By Andi Sakinah Zarah - 03 Nov. 2022
Ivan Andika Nuary S.An, familiarly known as Pak Ivan, is a 31 years old male from the village of Salulemo in Luwu Utara. Pak Ivan holds a bachelor's degree in business administration and owns a trading business dealing in building construction materials. In addition to his building materials business, he also farms about 5 hectares of corn fields and the tremendous successes attained with his farms led him into agri-inputs trading with the intent of offering a range of quality farm inputs to farmers in the community that farmer's lacked in order to improve crop yields.
Mr. Ivan finds the agri-inputs trading business more enjoyable that the building materials he ran for 6 years prior. Farming has been his passion for a long time as he grew up in an agricultural community and interacted with formulators and extension workers from various herbicides & pesticides companies in the past. Not only does he enjoy the business of agriculture, he also finds it more profitable than other businesses he's run in the past. From being able to produce superior yields of up to 8 metric tons per hectare by implementing new ideas on his fields which he chanced upon through his research on good agricultural practices.
According to Pak Ivan:
“We must understand our crop land and what its needs are, we must treat the plants with sincerity, because it will all return to us in the form of an abundant harvest”
In addition to selling inputs to farmers through his retail shop outlet, Mr. Ivan also supports farmers who do not have the capital to grow their field with inputs credit. The farmers are able to take the inputs on loans and pay back after harvest helping them. However, Mr. Ivan's biggest challenges are that, one, orders on pesticides and herbicides are low due to the fact that farmers do not understand the composition of active ingredients and as a result are either not ordering the right products or in the right quantities. Secondly, farmers struggle with capital limitations and lastly and also equally important is that the location of his shop and the relative newness of it is causing lower foot traffic. The demand for agri-inputs are also influenced by extension workers activities and promotions run by the producers which make it difficult for him to accurately forecast his demand and plan his inventory which culminates to either lost sales or slower inventory turn around tying up his working capital.
By partnering with Indontani by Prinsip, he is able to provide inputs and winning delivery experience to an expanded cohort of farmers in order to grow sales revenues. In addition to being able to educate farmers through the Indotani agri-advisory program, he now has better and adequate visibility into his supply chain distribution channels and farmer feed back to help improve his planning, solutioning and service delivery. Mr. Ivan hopes that his business will continue to grow with the Indotani partnership.
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