New ag retail survey identifies key business challenges
Proagrica, an independent provider of data integration and insight across the agriculture supply chain, has published its concluding data and analysis from its survey of U.S. businesses within the ag retail sector.
Proagrica launched this survey and the resulting report – Agricultural Retail in 2018: Your views and insights – to better understand key challenges faced by ag retail businesses in the current marketplace. More than 5,000 surveys were sent out, and the report results are based upon responses representing a combined revenue of over $4.5B. Respondents answered a total of 11 questions, focusing on the most pressing factors affecting profitability, growth, and the extent to which data and analytics are implemented into their current systems.
Key findings in the report include:
- 65% of respondents are feeling financial pressure due to fluctuating commodity pricing and competition.
- 68% felt that enhanced management of sales and productivity would provide substantial value.
- Larger businesses (above $201m in revenue) rate timely payment from customers and customer engagement and retention as 10% less stressful than smaller businesses.
- 30% of total businesses ranked future-proofing as low on their scale of concerns, but it remains the most persistent issue across all sizes of business.
- More than 75% of ag retailers are actively seeking improvements to their current systems, both for themselves and for their customers.
“The report indicates a concerted drive towards improved systems that can match the needs of ag retailers and their customers,” says Graeme McCracken, Managing Director of Proagrica. “Despite the turbulent marketplace, retailers are perceptive of the need for unprecedented efficiency and control, whilst driving innovation and added value to customers in the race to remain competitive.”
The data further indicates that the perception of big data being “exclusive” and “only for big business” is waning. More and more businesses are seeking solutions that work for them, adapting to the changing data landscape.
McCracken adds, “These results highlight the changes taking place in agriculture. Optimization of data and increased efficiency are now standard for businesses in the U.S. Although there are challenges, it’s clear that businesses which invest in and optimize their systems are the ones seizing opportunities for innovation, driving their competitive advantage as the marketplace evolves.”
To read the report in full, click here and complete the registration.