Why is this work relevant for Innovation?

In traditional marketplace design, components of the marketplace are designed separately and operated by different stakeholders. As a result, each stakeholder applies their resource independently without connection between each level. "VEGI-BUS" integrates these components based on the multi-level service ecosystem perspective depicted in service, which integrates logistics ,e-commerce and social media. The multi-level service ecosystem works with local marketplace design, and it delivers meaningful value creation among stakeholders in the community.

Background

Farmers want to deliver their vegetables at their freshest. But, using large distribution networks costs time and money at the expense of the freshness of the vegetables. For example, vegetables harvested in Shizuoka prefecture are once transported to a market in Tokyo 180 km away, priced, returned to Shizuoka and sold. At this point, about four days have already passed since the harvest. This is detrimental to both the farm and the consumer. To save local vegetable producers and to allow them to pass on their quality product quickly to consumers, what we needed was an efficient distribution system with a more favorable sales price for the farmers. From another point of view, there used to be local communication between farmers and consumers through local foods. Both farmers and consumers wanted to revive communication and lost communication with efficiency-oriented large-scale logistics.

Describe the idea

We created a platform that can distribute vegetables quickly and without extra cost by limiting the area. VEGI-BUS is a combination of unique logistics, e-commerce and social media services. We created a unique regional distribution infrastructure for a bus of vegetables where a refrigerated truck goes around the decided route and loads and unloads vegetables at every stop set on the route like a bus stop. Vegetables ordered through e-commerce are delivered using this infrastructure. By using VEGI-BUS, it has been possible to deliver what used to take four days, to 0 to 1 days, and by sharing the bus between all the users, the distribution cost has also been lowered. Farmers and consumers can communicate through this service to exchange requests and feedback about local agricultural products.

What were the key dates in the development process?

In January 2017, a large-scale demonstration experiment was started in Shizuoka City to verify the service acceptability and specific effects of this activity in the region. Conducted a one-year demonstration experiment in collaboration with different industries such as local governments, supervisory authorities, logistics companies, agricultural corporations, retail chains, and system companies. The service was launched after fully confirming the feasibility and innovation of this service.

Describe the innovation/technology

Buyers can browse and search vegetables uploaded by farmers on the VEGI-BUS top page. From there, specify the farmer and order vegetables. The farmer who received the order just harvests the vegetables and leaves them at the nearest bus stop. The driver picks up this and delivers it to the buyer's nearest bus stop. Buyers can go for it whenever they like. The vegetables ordered will be delivered the day or the day after the harvest. The farmers and buyers also have the added benefit of direct communication such as asking for recommendations or wishlisting new vegetables, and giving instant feedback on delivered vegetables. Communication through local products that once existed in the region has been re-designed in a new way by innovative service design. VEGI-BUS has not only reduced costs and emphasized efficiency, but also has a meaningful service in the local economy and community.

Describe the expectations/outcome

The farmers and buyers both save an enormous amount of time and money by sharing the stops on their routes. Some farmers have increased their income by 1 million yen in six months, which contributes to vitalize the important agricultural economy in Shizuoka. The purchaser's delivery cost was cut by 75%. At the same time, it reduces CO2 emissions by more than 66% compared with large distribution networks. This unique system hints at how the future of eCommerce might be, in cooperation with local economy and community. One year after the service started, VEGI-BUS plans to expand the service in multiple areas in Japan. Started handling not only agricultural products but also marine products. Visits are also coming from India and Southeast Asia. VEGI-BUS will provide a new way to protect the rich local economy and food culture and to redesign communication through local products all over the world.