Smart agriculture: features of automated business-processes and other functional tools

Only a few years ago specific terms of agribusiness caused slow implementation of technologies. Developing solutions for process streamlining and high demand during pandemic times has led to fast and efficient implementation of these solutions at the agribusiness industry.

Currently, there are both complex developments and individual programs that get results much faster than a year. IT-solutions are applied in production transformation, but also in marketing, sales and logistics. Farmers and back-office workers are also getting digital competence; because in agriculture the result is directly depending on employees.

Directions connected with crop and its selling have much more perspectives for transformation. For example, if we use high-tech programs in crop production, we can reveal favourable periods for harvesting, to scheme fertilizing, to mitigate risks of finance frauds and its misuses. Smart technologies allow tracking product from field to customer. With up-to-date software we can collect data much faster from agriculture equipment, sensors, drones and other to get the best outcomes for business.

At NFP we have a lot of requests connected with accounting and cost management from agriculture companies. For example, the situation when there is a lack of data in a company for decision-making because of siloed accounting that performed in Excel tables. Product cost price misevaluations and conclusions on direction's margin are also a problem area. When a company does not have a developed cost management system, it leads to poor competitiveness. Without up-to-date automation tools, procurement, sales and logistics become inefficient and resulted in losses.

High-tech companies and vendors meet a principal request of the agribusiness industry offering developments with robotized systems, AI, IoT, machine learning, BI tools, etc. We can apply them for a core problem that automation solves — streamline of routine tasks, increase work volumes and performance, and eliminate repetitive errors.

For example, with specific ERP-solutions, we can automate budgeting and exclude non-target and seasonal expenses. Software product allows performing animal and equipment accounting, crop analysis, defining soil conditions, comparing crop species that were grown in previous years.

RPA robots increase farm's performance, deal with monotonous tasks and cut risks and human errors. Just like in most other industries, software robots streamline office and back-office operations, make interaction with customers better, and allow defining problem areas in business-processes.

AI technologies bring benefits in directions of smart cattle and precision farming and robotics. With AI we can streamline harvesting, control soil conditions, melioration systems, create systems to track cattle health, manage amount of animals in herd, and track their locations and feeding.

IoT improves a lot of aspects of the agriculture industry. For example, with smart sensors it helps to collect massive volumes of data (in crop and cattle farming in particular). This technology enables forming so called smart farming for better productivity, waste reduce, fertilizer control, etc.

As a result, a number of start-ups in agriculture is growing, and thus enterprises can pick up the most suitable offers. Investments are an essential part in automation, so technology implementation is usually postponed because of poor resources.

NFP experts use a range of ERP-solutions based on programs for enterprise recourses management while working mostly with management accounting and budgeting. Imitation modeling is used to streamline harvesting and supply chain. Robots are applied for file sharing adjustment with external credentials without human participation.

Wine manufacturer and the largest restaurants supplier turned to us with an issue of data shortage in operational accounting. Specifically, this company was interested in cost price calculations of a bottle of wine. Incorrect manufacturing cost calculations led to wrong numbers in total income of wine direction and business rates of return.

To solve this issue, we offered to develop a methodology, so we could integrate it with existing infrastructures.

Primary research of company's processes revealed weak automation level, which led to the situation of data shortage on calculations objects.

Implementing the project on cost price calculations of a bottle of wine turned to be a large-scaled case. During this project we eliminated operational and management accounting issues, developed methodology on calculations and cost allocation. This case also included setting up operational accounting processes for employees' working hours and streamline of warehouse and logistics operations. We developed a management reporting system specifically for this company and it allowed automating key processes and eliminating data gaps (sowing, harvesting, ageing, bottling, etc). All these steps enable efficient cost allocation on each activity, starting from wine production to agro-tourism.