Foodko, the online local food platform

The three cofounders of Prospeh (Branimir Rakić, Tomaž Levak and Žiga Drev) established the company in 2013 in Ljubljana, Slovenia.

They started with a mission to increase transparency of food supply chains, which is being pursued by the company first product named Origintrail, which has already been commercialized and implemented in three sectors of food industry, namely dairy, meat and vegetable production.

Having get to know the food industry better, they noticed that the inefficiency of distribution is creating a lot of transaction costs to food producers and at the same time preventing some companies to increase their market outreach. Foodko, the company solution developed within Finish, takes advantage of idle capacities in either food transportation or warehouses to bring local food straight to consumers.

What are the problems that Foodko aims to address and how?

The challenge in the supply chain of perishable food products is a challenge and an opportunity at the same time. Certain food producers already deliver their products either to end customers or to shops. However, if their logistic capacities are not full when they are bringing their products to the market, their delivery costs can get too high very quickly. In fact, KPMG estimated that one-quarter of food transport trucks on the road were empty in 2011. Because of that they face the decision to either make their deliveries less frequent and make fewer sales or absorb high delivery costs that can make their sale less profitable. On the other hand, maintaining cold chain throughout the process is a significant barrier to entry for many producers of perishable or artisanal food and farmers with little or no logistic capacities to reach distant markets. As a consequence, shoppers are lacking access to genuine local food at reasonable prices with the economically sound option to have it delivered to their home.

 

By addressing all abovementioned challenges Foodko’s main goal is to exploit opportunities in a unique way without having to build its own expensive fleet of delivery trucks. It enables perishable food producers and distributors to share temperature-controlled supply chain assets such as transportation and cold storages to attain mutual benefits of diminishing logistics costs, better sales outreach and better profitability as a consequence. It facilitates collaboration between companies and farmers that, while not competing directly, market and sell to a common pool of consumers.

 

We often get asked about how we plan to solve food distribution on such a difficult set of possible situations and cases. The answer is Foodko‘s uniquely optimized, minimum waste intelligent food delivery system. We pick the shortest and quickest delivery options through our shared delivery distribution network, giving you the freshest local produce with the lowest carbon footprint.

 foodco prospeh value_proposition

What inspired you to design Foodko?

We have been cooperating with companies involved in food industry for 5 years and we how noticed how hard it is for them to achieve an economic viability, especially when they attempt to market introduce new food products that have not yet gained a sufficient traction to cover for all the distribution costs. At the same time some other producers have already had their distribution routes established but had a lot of empty capacities in their transportation of warehousing.

Drawing from the lessons of successful companies such as Uber and Airbnb, we have recognized a potential of shared economy in food distribution, and have henceforth started to connect companies using merely excel sheets and a phone. It was clear that we needed a more online approach and thanks to the support made available by Finish, we have been testing our beta version of Foodko solution as from March 2016 on.

 For which purpose are you using FIWARE GEs?

Foodko leverages FIWARE technology (4 generic enablers and the FIspace platform) in order to bring superior value to our users:

  • Delivery intelligence is built on top of the fast geo-searchingPoint of interest generic enabler in conjunction with the Orion Context Broker generic enabler, which find optimal ways of creating on-the-fly distribution channels, connecting you to local farmers and keeping the system moving.
  • CONTEXT BROKER GE handles all context information regarding the product shipments, deliveries and storage thus keeping the current state of the orders in the system available through the API at all times.
  • OBJECT STORAGE GE is used to store all the necessary product and stakeholder files, including certificates, images, videos etc.
  • 2D DUI GE is a great foundation for building dynamic and modern cross platform UI’s.

As the platform develops further (and moves towards open-source) we will introduce new features in the system and hopefully eliminate the need for external services such as the Google Distance matrix API. Nevertheless the connectivity and architecture of Fiware opts for a bright future of the European agri-food online industry.

Where will your project be in the future?

We strive to see Foodko diminish big share of transaction costs that result from inefficiencies in food distribution. Our ultimate goal is to expand the usage of our platform across the globe, thus contributing significantly to decreasing the carbon footprint food distribution is creating.

 

www.foodko.si (Slovene demo)

www.foodko.net/eng