Missfresh has expanded its supply chain network by adding direct sourcing from 550 farms, factories and processing facilities across China.
The improvement is set to allow the e-tailer to have better control over fresh produce production, helping to optimise operations, increase cost-effectiveness,and better meet consumers’ needs.
Missfresh currently sources more than 90 per cent of its fresh produce from its origin, and said it aims to increase this by continuously improving its supply chain with direct-to-consumer suppliers.
The company has engaged agricultural cooperatives that supply directly to processing facilities, improving the cost-effectiveness, quality, and stable supply of products.
Missfresh can also use big data to accurately predict sales and thus determine production levels and improve production efficiency. This new type of "sales-based production" operational model for determining agricultural output and ordering goods directly from farms can effectively reduce losses caused by surplus produce and inaccurate inventory forecasting.
An example of Missfresh’s “direct-to-consumer” model is its agricultural cooperative base in Mengcheng, Anhui. With its closely connected supply chain, MissFresh can deliver fresh broccoli to consumers within 36 hours after being harvested.