Luft Logistics is breaking new ground in the Brazilian agribusiness sector with its cutting-edge agtech platform, Agrega Agro. Gustavo Saraiva, CIO of Luft Logistics and Agrega Agro, tells Intelligent CIO how the organization is making e-commerce more accessible and efficient for agribusiness retailers.
The rapid and irreversible transformation of the logistics sector, driven by technology, is remarkable with the digital logistics market expected to grow exponentially.
Luft Logistics is one of the pioneers in this sector accelerating the digitalization of Agro in Brazil, through its agtech Agrega Agro.
Created in 2023 to comprehensively meet the specific full-commerce demands of agribusiness retailers, agtech is taking physical businesses to the world of e-commerce, with cutting-edge technology, speed and low cost, integrated into the logistics ecosystem of Luft.
Luciano Luft, Founder and CEO from Luft Logistics, said: “With Agrega Agro, we support agribusiness retailers to quickly and successfully enter e-commerce. We will continue to invest in new technologies in order to continually bring innovative solutions to our customers.”
Agrega Agro does not buy or sell products, but rather helps and enables new channels and possibilities for companies, working on the design of virtual stores for resellers, distributors, co-operatives and rural producers, including those in the process of entering e-commerce. Agtech helps them develop robust solutions, in accordance with the particularities and good practices of the Agro market.
Gustavo Saraiva, CIO of Luft Logistics and Agrega Agro
Gustavo Saraiva, CIO of Luft Logistics and Agrega Agro, said: “We have developed a safe and super adaptive model. With full commerce technology and a multidisciplinary operational team, Agrega Agro tracks orders from their origin to the shipping and transportation stages, automating complex processes in an effective and uncomplicated channel for the commercialization of inputs such as pesticides, fertilizers and seeds, with multichannel online service.”
Through the platform, the retailer can, for example, access documentation in the same place; schedule and split the delivery of orders; respond to queries in real time by salespeople; check market prices and issue invoices and digital agronomic prescriptions.
“Through our advanced ecosystem, new projects and solutions are incubated and meticulously tested within a conducive environment, before being comprehensively launched on to the market. This approach ensures that we remain at the forefront of logistics evolution,” said Saraiva.
It’s been a landmark year for the company. On July 31, Luft Logistics signed a technology transfer memorandum of understanding with the Ministry of Development of Saudi Arabia (MISA), which provides for the establishment, in Saudi Arabia, of a development center for distributors, e-commerce and retailers, involving systems and solutions created by the Brazilian company.
We asked Gustavo Saraiva, Luft Logistics CIO, further questions to find out more about how the company is shaping its sector.
The digital logistics market is expected to grow exponentially by 2030. How is Luft Logistics positioning itself to capture a significant share of this growth?
Since our founding in 1975, Luft Logistics has implemented solutions to logistics problems. The integrated vision of Logistics as part of our customers’ supply or sales system has always been a strong differentiator for us. We continually invest in technologies that integrate the ecosystems of the companies served with the market.
This integration of the entire chain is fundamental for digitalization and leaps in growth, sales and competitiveness for customers. Today, Luft’s services go far beyond logistics. They also include systems, full service and full commerce operations, in operational models that highlight it as a partner par excellence in business expansion.
In the last four to five years, our investments in technology and systems have been even greater than in assets such as the fleet, for example. Our transformation from logistics operator to logtech is underway.
Agrega Agro focuses on robust digital solutions for agribusiness retailers. Can you elaborate on the unique challenges and particularities that the Agro market presents when transitioning to e-commerce?
The agribusiness market in Brazil has complex and constantly updated legislation that needs to be monitored to meet the main tax requirements and product control and marketing rules. Furthermore, commercial conditions have great particularities and an active and dedicated development team is a great advantage in providing extensions and functionalities that digitize all these processes.
Some of the challenges are not related to technology, but rather to Brazil’s large territorial extension, stock positioning and regulation.
Agrega solves this with a one stop shop solution for customers. With more than 15 strategically positioned distribution centres, cutting-edge systems such as WMS, TMS, routing and an information platform in addition to all of Luft Logistics’ operational know-how, this entire ecosystem is integrated into an e-commerce platform that makes it possible to offer a unique solution for each customer.
Created in 2023 to comprehensively meet the specific full commerce demands of agribusiness retailers, Agrega Agro is taking physical businesses to the world of e-commerce, with cutting-edge technology, speed and low cost, integrated into the logistics ecosystem from Luft.
Agrega Agro does not buy or sell products, but rather helps and enables new channels and possibilities for companies, working on the design of virtual stores for resellers, distributors, co-operatives and rural producers, including those in the process of entering e-commerce.
It is a safe and super adaptive model. With technology and a multidisciplinary operational team, Agrega Agro tracks orders from origin to the shipping and transportation stages, automating complex processes into an effective and uncomplicated channel for the sale of inputs such as pesticides, fertilizers and seeds, with multichannel online service.
Through the platform, the retailer can, for example, access documentation in the same place; schedule and split the delivery of orders; respond to queries in real time by salespeople; check market prices and issue invoices and digital agronomic prescriptions.
In terms of a ‘safe and super adaptive model’ that tracks orders from origin to shipping, can you walk us through the technologies that make this model effective and secure?
We developed a super hub that connects the entire ecosystem of tools that work directly in e-commerce operations. Based on the client’s business rules, integration activities are carried out to ensure step-by-step integration of products, orders and customers through ERP systems, WMS, TMS, e-commerce platforms, messaging platforms and platforms of marketing. Activities are monitored by our multidisciplinary team through dashboards and log systems via app, SMS and desktop. Our system is developed with modern and robust languages and a security protocol that allows controlled access to the code and management platform.
The technology transfer memorandum of understanding with the Ministry of Development of Saudi Arabia is a significant milestone for Luft Logistics. How do you envision this partnership affecting the company’s international expansion plans?
Luft Logistics has signed a technology transfer memorandum of understanding with the Saudi Arabian Ministry of Development (MISA). The partnership foresees the establishment, in Saudi Arabia, of a development centre for distributors, e-commerces and retailers, involving systems and solutions created by us. With this agreement with MISA, we are taking our technology in operations focused on logistics and e-commerce, in addition to SaaS solutions, to the Arab world.
Digital agronomic prescriptions and real-time sales support are among the services offered by Agrega Agro. How do these features contribute to optimizing the agribusiness retail process?
The agronomic prescription is a mandatory document in the sale of pesticides and we have a 100% dedicated platform to meet all technical requirements when filling out and signing. Connecting with Agronomists via APP to sign recipes and monitor issued documents speeds up the process, which is 100% integrated with the e-commerce platform. The service and operations team has agribusiness specialists who contribute to clarifications and technical doubts of rural producers and the development of improvements in the process and functionalities through day-to-day feedback.
With 70% of rural producers in Brazil already using digital channels for at least one input, what strategies is Agrega Agro employing to further accelerate the digitalization of agriculture in the country?
Agrega Agro, aware of the agricultural market’s growing awareness of the benefits of digitalization, has adopted a solid strategic approach to further accelerate Digital Transformation in the Brazilian agricultural sector. The company recognizes the importance of facilitating the adoption of technological solutions by rural producers and to this end, it has developed an integrated ecosystem that offers full commerce and full-service services.
Sharing knowledge and raising market awareness about the digitalization of the agricultural market is essential to boost the adoption of technologies. Agrega Agro is actively involved in awareness campaigns, workshops and events to educate customers about the advantages of digital solutions. These efforts aim to show how technology can improve efficiency, productivity and sustainability in the fields, highlighting the tangible results achieved by other farmers who have already adopted digital solutions.
When it comes to facilitating technology adoption, Agrega Agro offers an integrated ecosystem that simplifies the process for producers. The company’s Full Commerce allows farmers to easily purchase inputs, equipment and digital services through a single online platform. In addition, Agrega Agro’s Full Service offers technical support, training and consultancy to help customers implement and maximize the use of technologies in their operations.
The integration of systems and solutions is another priority for Agrega Agro. The company recognizes that customers often use a variety of solutions, including proprietary systems and third-party products. Therefore, Agrega Agro invests in technology that allows interoperability between different systems, making it easier for customers to integrate their existing solutions with those offered by the company. This promotes flexibility and customization of solutions according to the individual needs of each producer.
In summary, Agrega Agro is committed to accelerating the digitization of agriculture in Brazil, promoting awareness, easing the adoption of technologies through an integrated ecosystem and promoting the integration of proprietary and third-party systems and solutions. With these strategies, the company aims to boost sales on digital channels in the Brazilian agricultural sector, contributing to its development and growth.
