Smart Raw Material Procurement System (SRMPS) –a digital platform to revolutionize sustainability in its own way!

As the Internet of Things revolutionizes businesses worldwide, it also significantly impacts sustainability. Vareli Tecsoft – a Kolkata-based software company – has developed an innovative platform that greatly benefits businesses in a big way that procure feedstock raw materials.

The Smart Raw Material Procurement System (SRMPS) is an advanced application designed for the procurement of loose raw materials, meaning materials purchased based on their weight rather than being pre-packaged in boxes or bags. This system digitizes the entire procurement process, from weighing the materials to making the final payment, ensuring efficiency and accuracy throughout.

Yagnesh Bagrodia, a young turk in his mid-20s and the director of the firm, is actively promoting this innovative product. According to Vareli Tecsoft, the software platform is designed to be user-friendly, maintaining the weighing and payment process efficiently. The plant owners or users need to input minimal data to achieve maximum output. There is data accuracy that reduces chances of error and the system supports multiple companies and plants under a single platform. Also, different access levels ensure security and appropriate access for various roles.

Simplifying Processes

Yagnesh informs that his firm has been in the business for the last 20 years and the software division has been there for 3-4 years as a new vertical.

He explains the utility of the new IT platform, “In layman terms, loose raw material needs to be quantified in a plant. A farmer who gets his feedstock or grain on his tractor to the plant has no idea about the actual quality of the product. Our platform helps in appraising actual weight, generating a token through which the loose material gets lab tested and the farmer has full knowledge with regards to the price that will be paid for the material he is supplying.”  The loose product could be anything like rice straw, rice husk, sugarcane, pressmud, etc. and the lab dynamics of each product could be different.

In the SRMPS platform, there is no identification number, no name etc. but only a token is issued. Hence, no theft or fraud is possible. In this system, the plant employees and visiting farmers/sellers are not able to collude or do anything wrong. Both parties remain anonymous to each other and both parties get their due share.

There is also no middle man in this process – he is simply eliminated. Price, weight or quality distortion of loose products is impossible here. Both plant management & farmers are linked & benefitted.

Benefiting Farmers

Farmers are the producers of loose materials. SRMPS automatically calculates and generates bills based on the weight of the supplied material. The software application simplifies the payment process for end-users which helps in ensuring quick and hassle-free transactions. Farmers get paid on time. They receive clear and concise payment and receipt statements.

Benefiting Plant Owners

Plant owners are the other key stakeholder in the scheme of things. By automating the procurement processes, the system lowers operational costs significantly. SRMPS reduces the need for manual labour and lowers overall manpower costs. The digital system enhances both security and accuracy in the procurement process. As the process is streamlined – a seamless procurement activity from start to finish – it allows for better financial management and planning.

SRMPS tracks the handling of raw materials and vehicle movements within the plant facility. There is proper barcoding that helps in real-time monitoring through a mobile app that enhances oversight.

The plant owners have minimal raw material waste and reduced inventory costs. The SRMPS captures the weight of materials using digital weighing machines and updates quality parameters accordingly.

Yagnesh informs, “We have already sold the product to few players including biofuels players and they have been really happy with the product. They would even demand customization to suit their businesses better. We have been getting wide reach through word of the mouth. Theft, collusions, frauds and waste has been reduced to a great extent or completely eliminated which are big savings for the plants. Secondly, the plant management is more relaxed and can direct their energies and resources to make plants more efficient.”

The farmers usually get paid in cash. At times illegal collusion would bring losses to plants and at times to even farmers. “Through the payment is not integrated in our platform as farmers prefer cash payments for obvious reasons. SRMPS helps in faster payments though. When the farmer is paid in time, he is happy and will supply the feedstock or loose materials to plants,” he adds.

Vareli Tecsoft is venturing out to Northern and Western parts of India. “I have a full list of players that we are reaching out in Uttar Pradesh like biomass, CBG plants, bioenergy plants, thermal plants etc.,” Yagnesh mentions. He is mainly focusing on Maharashtra, Uttar Pradesh and Jharkhand – the states having largest loose materials’ markets.

Price Not An Impediment

He is also particular about the pricing of SRMPS. “In terms of pricing also, we are more than sure that nobody will have a problem in purchasing our software product given that his business requires it. It’s only one time purchase and you can run it your own – data is yours; integration is yours. The year-on revenue generated is great and I’m sure entrepreneurs should lean towards this product.”

Yagnesh also says that the market scope and industry scope of SRMPS is very high. “Anybody who procures loose raw materials like rice mills, sugar mills, biofuel plants etc. would require our platform. The only gap is that players are searching for me and I’m searching for them.”

The Vareli Tecsoft director is convinced that SRMPS will be a great product for the biofuels industry. In terms of utility and value add to end customers & customers, it gives them clarity and control over the full system. He is assured that he won’t have any drastic loss in purchase of the loose raw material items. It simply offers more freedom to one’s own business. One can reach out at ykbagrodia@vareli.co.in for further enquiries.