Case Study 1

Enhancing Quality and Handling of Agro Commodities through Innovative Packaging

Introduction

In the agro commodities sector, packaging and handling methods can significantly impact the quality of the products. This case study explores a unique challenge faced by an exporter in India and the innovative solution provided by Virgo to overcome this challenge.

Problem Statement

In India, certain agro commodities are traditionally packaged in 50kg bags. This packaging method is industry-wide and the handling of these bags is done purely by labor force. This method, while effective in the local context, posed a significant challenge when these commodities were to be exported.

The client, an exporter of these agro commodities, was faced with a situation where the target foreign market did not have the infrastructure or the labor force to handle these 50kg bags in the same manner as in India. This posed a risk to the quality of the commodities during transit and upon arrival in the foreign country.

Moreover, the client had a specific requirement. The commodities, upon arrival in the foreign country, needed to be in a state that could be handled by a forklift or lift truck. This was a significant deviation from the traditional handling methods used in India.

Solution

Understanding the unique needs of the client and the market conditions, Virgo devised an innovative solution. A metal hopper with hooks was specially fabricated for this purpose at no extra cost burden to the client. This hopper was used to convert the small 50 kg bags into large jumbo bags of 1 MT. The cargo would be then systematically stuffed lot wise, into containers and loaded onto vehicles for the delivery to port directly.

The solution provided by Virgo had several benefits:

  1. Maintaining Quality: The repackaging process was designed to keep the commodities dirt-free by avoiding direct labor contact. This was crucial in preserving the quality of the commodities during transit. The commodities, being in jumbo bags, were less likely to be exposed to dirt and other environmental factors that could degrade their quality.
  2. Ease of Handling: The repackaging into jumbo bags made it easier to handle the commodities using a forklift. This was a significant improvement over the traditional handling methods and met the client’s requirement for the commodities to be in a state that could be handled by a forklift or lift truck in the foreign country.
  3. Direct to Port Delivery (DPD): To reduce on the touch points of cargo, Virgo offered the service of Factory Stuffing, by obtaining Self Sealing Permission for the client. Hereby the cargo would be stuffed in container and delivered directly to the vessel after clearance at the port checkpoints. This system has been around for over years but very selected exporters use this provision to their own benefit. Virgo has been instrumental for clients to take advantage of this and make significant cost savings

Conclusion

This case study demonstrates how innovative solutions can address complex problems in commodity handling and export. It underscores the importance of understanding client needs and market conditions, and the role of creative problem-solving in meeting these needs. The solution provided by Virgo not only addressed the client’s immediate needs but also set a precedent for similar challenges in the agro commodities sector. This case serves as a testament to Virgo’s commitment to providing tailored solutions to its clients, thereby ensuring the quality and ease of handling of agro commodities in the export market.