Transforming Farmer & Vendor-Centric Procurement

In this case study, we will explore the implementation and impact of a feature ’Real Time Procurement Optimiser (RTPO)’ which is poised to revolutionise the way in which agri-commodity trade is conduced by Dehaat’s Procurement Team, offering significant benefits to both Dehaat and the suppliers involved

This case study highlights the Real-Time Procurement Optimiser (RTPO) and its impact on streamlining agri-commodity trade for Dehaat, benefiting both the team and its suppliers.

This case study explores the implementation and impact of the Real-Time Procurement Optimiser (RTPO), a feature transforming agri-commodity trade for Dehaat’s Procurement Team—delivering major benefits for both Dehaat and its suppliers.

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Project Overview

This case study presents an overview of DeHaat's procurement operations and the obstacles they encountered as a result of relying on traditional procurement methods. It showcases how the launch of the 'Real-Time Procurement Optimiser' helped overcome these challenges.

With the introduction of this feature, we were able to achieve the following impact :

This case study presents an overview of DeHaat's procurement operations and the obstacles they encountered as a result of relying on traditional procurement methods. It showcases how the launch of the 'Real-Time Procurement Optimiser' helped overcome these challenges.

With the introduction of this feature, we were able to achieve the following impact :

Broadened Supplier Network

Enhanced Purchase Order Conversion

Improved Margin

By aligning the project objectives with the achieved impacts, this case study highlights the successful implementation of the RTPO solution and its positive outcomes in DeHaat's procurement operations.

By aligning the project objectives with the achieved impacts, this case study highlights the successful implementation of the RTPO solution and its positive outcomes in DeHaat's procurement operations.

My Role

As the lead designer, my role was to create a user-centric solution that aligned with Dehaat's business goals. I conducted extensive research with 30+ users, collaborated with multiple stakeholders, designed 50+ interfaces, and conducted usability tests to achieve this.

As the lead designer, my role was to create a user-centric solution that aligned with Dehaat's business goals. I conducted extensive research with 30+ users, collaborated with multiple stakeholders, designed 50+ interfaces, and conducted usability tests to achieve this.

Objective

To create a user-centric solution that fosters a thriving agricultural ecosystem for all stakeholders involved and addresses challenges faced by users in the procurement process, empowering procurement managers, improving reach and enhancing communication channels for farmers and suppliers, and supporting state heads in their achieving goals

To design a user-centric solution that strengthens the agricultural ecosystem by empowering procurement managers, improving communication with farmers and suppliers, and supporting state heads in meeting their goals.

Business Objectives

Success Metrics

Create a clear audit trail of negotiation

To achieve a minimum of 50 documented price offers per trade

To achieve a minimum of 50 documented price offers per trade.

Increase Profitability by reducing the cost of purchase

To achieve a 70% conversion rate for trades with vendors who have expressed interest

Maintain vendor diversification easily

Margin improvement

Reduce TAT of purchase confirmation through expiry based bidding

Before we delve into the process of creating the 'Real-Time Procurement Operation' feature, it's essential to understand the platform on which it was released and the timeline leading to the decision to introduce it.

Before we delve into the process of creating the 'Real-Time Procurement Operation' feature, it's essential to understand the platform on which it was released and the timeline leading to the decision to introduce it.

On Which Platform Was RTPO released?

The RTPO Feature was launched on the OMS Procurement App which is a B2B product designed for Dehaat's Procurement Team to digitise and streamline their procurement operations

This application aims to alleviate the workload on Procurement Managers, enhance transparency, reduce compliance issues and improve efficiency by digitizing key procurement actions like Purchase Orders, Goods Received Notes, and Vendor Bills.

The RTPO Feature was launched on the OMS Procurement App which is a B2B product designed for Dehaat's Procurement Team to digitise and streamline their procurement operations

This application aims to alleviate the workload on Procurement Managers, enhance transparency, reduce compliance issues and improve efficiency by digitizing key procurement actions like Purchase Orders, Goods Received Notes, and Vendor Bills.

Key Actions of the Procurement Process

Creation of PO

A Purchase Order (PO) is a digital document which is created on the Procurement App by a Procurement Manager to formalise an agreement with a Farmer/Supplier for the purchase of a commodity.

Inwarding of GRN

A Goods Received Note is a document which is inwarded by a Procurement Manager after the delivery of a commodity promised by the Farmer/Supplier to Dehaat.

Vendor Bill Creation

A Vendor Bill is created by a Procurement Manager on the OMS Procurement App to authorize payment release to a Farmer/Supplier after accepting their delivered commodity.

When Did We Decide to Introduce RTPO?

After successfully digitising the procurement process and witnessing 100% adoption of the Procurement App, the decision to introduce the Real-Time Procurement Optimizer (RTPO) was taken.

This move aimed to further enhance the procurement process and address key challenges identified during the initial phase

After successfully digitising the procurement process and witnessing 100% adoption of the Procurement App, the decision to introduce the Real-Time Procurement Optimizer (RTPO) was taken.

This move aimed to further enhance the procurement process and address key challenges identified during the initial phase

Now that we have an understanding of the reasons behind the launch of RTPO and the timing and location of its release, let's delve into the approach we adopted to tackle these issues and achieve our goals.

Now that we have an understanding of the reasons behind the launch of RTPO and the timing and location of its release, let's delve into the approach we adopted to tackle these issues and achieve our goals.

UX RESEARCH

Discovery Phase

In order to create a user centric solution and understand the challenges and opportunities that lie within the existing procurement system, it was important to understand how the operations were being carried out by the procurement team on ground. Hence, we decided to conduct qualitative research with all the different user sets involved in the process through the following channels :-

In order to create a user centric solution and understand the challenges and opportunities that lie within the existing procurement system, it was important to understand how the operations were being carried out by the procurement team on ground. Hence, we decided to conduct qualitative research with all the different user sets involved in the process through the following channels :-

Field Visits

Recognising that the majority of Dehaat's procurement operations were concentrated in Bihar, we strategically chose it as the hub for direct user interactions.

Through multiple field visits to key locations like Purnea, Biharsharif, and Sasaram, we engaged with diverse user groups. These interactions yielded invaluable insights and perspectives from various user sets, facilitating a comprehensive understanding of the procurement landscape.

Recognising that the majority of Dehaat's procurement operations were concentrated in Bihar, we strategically chose it as the hub for direct user interactions.

Through multiple field visits to key locations like Purnea, Biharsharif, and Sasaram, we engaged with diverse user groups.

Online Interviews

To gain comprehensive user perspectives and experiences, we conducted targeted interviews through Google Meet. Our User Selection Criteria was as follows:

We engaged with State Heads and highly experienced Procurement Managers who had created over 200 Purchase Orders within a year

We targeted vendors and farmers with a minimum 6-month association with Dehaat to gather valuable insights from highly involved participants.

We engaged with State Heads and highly experienced Procurement Managers who had created over 200 Purchase Orders within a year

We targeted vendors and farmers with a minimum 6-month association with Dehaat to gather valuable insights from highly involved participants.

Sample Questions For Procurement Managers

For the interviews with Procurement Managers, we prepared two categories of questions: basic and behavioral. These questions were designed to understand their perspective on the Procurement Journey and their behavior throughout the process

For the interviews with Procurement Managers, we prepared two categories of questions: basic and behavioral. These questions were designed to understand their perspective on the Procurement Journey and their behavior throughout the process

We interviewed 5 Procurement Managers working in different states and here are some examples of the questions we asked:

How often do you get Demands from the State Head?
What is the channel/medium through which you receive information about the demands?
What is the first step that you take when you receive a demand?
How do you usually inform the vendors about the demands?
Do you send the Demands request to all the vendors or is there any specific set of vendors?
Do you ever create multiple PO's with the same vendor while trying to fulfill a demand?
How many PO's are usually sent by you towards a PR and how many of them get accepted?
When Multiple PM's are tagged to fulfill a demand, are you aware of the PO's created by them?
What difficulties or challenges do you face in the season?

How often do you get Demands from the State Head?
What is the channel/medium through which you receive information about the demands?
What is the first step that you take when you receive a demand?
How do you usually inform the vendors about the demands?
Do you send the Demands request to all the vendors or is there any specific set of vendors?

To read our complete interview script conducted with Procurement Manager , Click Here

Key Insights Gathered From Field Visits & User Interviews :

Key Insights Gathered From Field Visits & User Interviews

Dehaat's team relies on WhatsApp as the primary communication channel for various aspects of their procurement operations.

It serves as a convenient platform for sharing demands internally within the team and for facilitating bid submission and feedback from suppliers.

Dehaat's team uses WhatsApp as the main channel to share internal procurement needs and coordinate bid submissions and feedback from suppliers.Ask ChatGPT

Most locations have an average of 200 to 250 suppliers; However, procurement managers typically limit their engagement to a select group of vendors, usually around 15-20, with whom they regularly trade.

This highlights significant untapped potential to expand the supply reach

Most locations have 200–250 suppliers, but procurement managers typically engage with only 15–20 regular vendors—revealing a large untapped opportunity to expand supply reach.

Procurement managers frequently engage in back-and-forth negotiations with suppliers using both WhatsApp and phone calls.

Managing vendor communications across multiple channels can become challenging and contribute to a time-consuming negotiation process.

Procurement managers often negotiate with suppliers via WhatsApp and phone calls, making it difficult to manage communications and leading to a time-consuming process.

State Heads often lack comprehensive visibility over the entire procurement process for a demand.

Their visibility is typically limited to the bids shared by the Procurement Managers, which may restrict their ability to have a holistic understanding of the procurement activities.

State Heads often have limited visibility into the full procurement process, relying mainly on bids shared by Procurement Managers, which hinders a holistic view of activities.

State Heads have to engage in multiple interactions with various Procurement Managers to review and approve Supplier bids for demand fulfilment.

Moreover, they are burdened with the manual task of calculating demand progress by aggregating approved bid quantities, making the process time-consuming and burdensome for them

State Heads must coordinate with multiple Procurement Managers to review and approve supplier bids. They also manually track demand progress by aggregating approved quantities, making the process time-consuming and burdensome.

Current Procurement Process

By analysing the insights and observations from our interactions with the diverse user sets, we were able to document the existing procurement process to identify additional challenges and pain points.

By analysing the insights and observations from our interactions with the diverse user sets, we were able to document the existing procurement process to identify additional challenges and pain points.

Legend

Action by State Head (SH)

Action by Procurement Manager (PM)

Action by Farmers & Vendors (Suppliers)

01 : Calculation of Margins

SH Lists down the demand requirement from the Sales Team on a paper

They calculate rate at which Dehaat needs to procure a commodity

They Ask all the Procurement Managers to inquire about the average price at which the commodity is being sold in their node

02 : Inquiry About Price

PMs call 5-10 Suppliers to inquire about average price and quantity available with them

Suppliers share Price and/or Quantity Details with the PM’s

PM’s list down the prices offered by the different Suppliers and quantities available with them.

They share this list with the State Heads via Whatsapp

03 : Selection of Nodes

SH lists down Average Price at which commodity is being sold in different nodes

They identify and select the nodes from which procurement needs to be done

They then share the exact commodity requirements with the PM’s of the selected nodes

04 : Negotiation

PM’s from the selected nodes call some suppliers and reveal the exact requirements of the commodity with them

Suppliers Review Requirements shared by Dehaat

They Call PM to share bid at which they would be willing to sell their commodity

PM lists down Bids sent by the suppliers

05 : Listing & Sharing of Offers

The PMs review all the bids received and shortlists the best ones

They Share the shortlised bids with the State Head via whatsapp

06 : Feedback on Shared Offers

SH lists down all bids sent by the PMs

They review and share feedback on every bid with the PM via whatsapp

07 : Renegotiation with Suppliers

PMs renegotiate Bids sent by Suppliers according to Feedback shared by State Head

Suppliers Renegotiates with PM on call and shares their final offer

They Lists down Final Bids Sent by Suppliers

They share Final Bids with the State Head via Whatsapp

08 : Offer Approval

State Head Reviews Final Bids sent by PM

They Give Approval via whatsapp to PM’s on the suitable offers

09 : Purchase Order Creation

PM Calls Suppliers to Finalise Deal

Suppliers Confirms Deal with PM over call

PM creates Purchase Order on the Procurement App by manually entering details of the bid on the application

They check progress of the demand by manually calculating the quantity of Purchase Orders approved by the State Head in their whatsapp group

Demand Fulfilled

User Pain Points

By diligently observing the previously identified insights and meticulously documenting the current procurement process, we were able to uncover additional pain points that users encounter throughout the process.

By diligently observing the previously identified insights and meticulously documenting the current procurement process, we were able to uncover additional pain points that users encounter throughout the process.

State Heads

Lack of real-time visibility into the overall procurement process, making it difficult to monitor progress and identify bottlenecks.
Manual and time-consuming coordination with multiple procurement managers, resulting in inefficiencies and delays.

Lack of real-time visibility into the procurement process makes it hard to track progress and spot bottlenecks.

Procurement Managers

The limited reach of suppliers, stemming from time constraints, restricts their ability to negotiate better deals and hinders overall efficiency
Connecting with suppliers to fulfil demand over the call and WhatsApp is a time-consuming process.

Limited supplier reach due to time constraints hinders efficient negotiations and slows down demand fulfilment, as relying on calls and WhatsApp is time-consuming.

Suppliers (Farmers & Vendors)

Everyone doesn't get the visibility of demand due to limited reach of the procurement manager (PM)
Not able to sell their entire produce in the season at a reasonable price.

Limited reach of Procurement Managers means not all suppliers have visibility into demand, preventing many from selling their full produce at fair prices during the season.

Problem Statement

After gaining a clear understanding of the procurement process on the ground, our next step was to strategically enhance the process according to our objectives. To achieve this, we identified the challenges through our interactions with state heads, procurement managers (PMs), vendors, and farmers. This allowed us to pinpoint the areas that required improvement and focus our efforts accordingly

After gaining a clear understanding of the procurement process on the ground, our next step was to strategically enhance the process according to our objectives. To achieve this, we identified the challenges through our interactions with state heads, procurement managers (PMs), vendors, and farmers. This allowed us to pinpoint the areas that required improvement and focus our efforts accordingly

Limited Reach

Traditional procurement methods used by DeHaat limit connectivity with farmers and suppliers, restricting their ability to explore diverse sourcing options and maximize value.

Vendors and farmers face challenges in reaching potential buyers in the market, leading to difficulties in timely sales.

DeHaat’s traditional procurement methods limit connectivity with farmers and suppliers, reducing opportunities for diverse sourcing and value optimization

Lack of Transparency

The existing procurement process lacks transparency, hindering the ability to track and monitor interactions with vendors and farmers.

This leads to a lack of visibility into pricing, availability, and quality information, impeding informed decision-making.

The current procurement process lacks transparency, making it difficult to track interactions with vendors and farmers. This limits visibility into pricing, availability, and quality—hindering informed decision-making.

Time Consuming Negotiation

The existing procurement process lacks transparency, hindering the ability to track and monitor interactions with vendors and farmers.

This leads to a lack of visibility into pricing, availability, and quality information, impeding informed decision-making.

The existing procurement process lacks transparency, making it hard to monitor interactions with vendors and farmers. As a result, visibility into pricing, availability, and quality is limited—restricting informed decision-making.

Brainstorming

Using all the above insights and observations our aim was to translate user's procurement behaviour into a digital experience which addresses their needs and pain points, in addition to achieving overall business objectives.

Using all the above insights and observations our aim was to translate user's procurement behaviour into a digital experience which addresses their needs and pain points, in addition to achieving overall business objectives.

Brainstorming with Key Stakeholders

After thoroughly understanding the challenges and problem statements, we conducted brainstorming sessions with the product and business teams to devise a solution overview. Our aim was to propose practical changes to the procurement process that addressed the pain points and met the needs of the users involved.

After identifying key challenges, we collaborated with product and business teams to outline a solution focused on practical improvements to the procurement process that addressed user needs.

Solution Overview

Based on the insights gathered during the brainstorming sessions, we developed a solution known as RTPO (Real-Time Procurement Optimizer). This solution empowers the procurement team by enabling them to broadcast commodity requirements to a wider network of vendors and farmers, facilitating competitive bidding and enhancing negotiation opportunities for procurement managers (PMs). With real-time bid evaluation, the solution improves vendor reach and enables better sourcing decisions.

Based on insights from brainstorming sessions, we developed RTPO (Real-Time Procurement Optimizer)—a solution that lets procurement teams broadcast commodity needs to a broader supplier network. It enables competitive bidding, improves vendor reach, and supports PMs in making faster, more informed sourcing decisions through real-time bid evaluation.

Conceptualization and Ideation

Based on the insights gathered, our objective was to introduce user-centric functionalities and features in our digital experience to address the needs and pain points of different user sets while achieving overall business objectives.

The planned functionalities included:

Based on the insights gathered, our objective was to introduce user-centric functionalities and features in our digital experience to address the needs and pain points of different user sets while achieving overall business objectives.

The planned functionalities included:

Demand Creation and Broadcast Functionality for State Heads:

To empower State Heads in communicating their commodity demands to a wider network of suppliers.

WhatsApp Integration for Farmers & Vendors:

To enable instant notifications for farmers and vendors regarding Dehaat's demands, improving communication and timely response.

Demand and Bid Analysis Functionality for PM’s

To empower Procurement Managers with insights on demands and supplier bids, aiding informed procurement decisions.

These functionalities were intended to enhance communication, improve efficiency, and facilitate better decision-making throughout the procurement process.

Procurement Process after launch of Real Time Procurement Optimiser

By implementing the discussed functionalities, we created a revised procurement flow that streamlined and simplified the steps for all users. This resulted in time savings, improved efficiency, enhanced supplier reach, and increased profitability. The procurement process became more user-friendly and effective, benefiting all stakeholders involved.

By implementing the discussed functionalities, we created a revised procurement flow that streamlined and simplified the steps for all users. This resulted in time savings, improved efficiency, enhanced supplier reach, and increased profitability. The procurement process became more user-friendly and effective, benefiting all stakeholders involved.

Legend

Action by State Head

Action by Procurement Manager (PM)

Action by Farmers & Vendors (Suppliers)

01 : Calculation of Margins

SH lists demand requirement from Sales Team directly in Procurement App by creating a new demand

They calculates rate at which Dehaat needs to procure a commodity

02 : Creation of Demand Request

SH checks the average Price of the commodity available in different nodes while creating demand

They identifies and selects the nodes from which procurement needs to be done without needing help from PM or Suppliers

Creates Demand Request on Procurement App

03 : Demand Review & Placing Bids

PM’s of the selected nodes get notified about the new demand requirement through Procurement App

All Suppliers present in the selected nodes receive Demand request generated by State Head through whatsapp

They review demand requests and place bids through whatsapp

04 : Negotiation & Shortlisting

PM reviews bids sent by Suppliers on Procurement App

They shortlist some offers by marking their interest in the same

05 : Creation of PO

The PM renegotiates on the shortlisted bids with the Suppliers

Suppliers share final bid with the PMs

PM sends a request for Purchase Order creation through Procurement App on the final bids considered appropriate by them

06 : Approval of Purchase Orders

SH Reviews Purchase Orders created by PM

They give approval on the Purchase Order Requests sent by the PM considered appropriate by them

Purchase Order gets created and PM can see progress of a Demand Request via View Demand Module on Procurement App

Demand Fulfilled

Dehaat

Ability to Fulfil Demands quickly

Profitable Deals

State Head

Optimal Purchase Decisions

Full visibility over the entire process

Faster Negotiations

Streamlined Approach

Suppliers

Expanded Reach

Faster Negotiations

Wireframing

The next step involved translating the proposed solution into wireframes, which served as a visual representation of the flow. These wireframes were created to facilitate the validation process and gather valuable feedback from our users.

The next step involved translating the proposed solution into wireframes, which served as a visual representation of the flow. These wireframes were created to facilitate the validation process and gather valuable feedback from our users.

To view the detailed wireframes, Click Here

Feedback Sessions on Wireframes

To prioritize user experience (UX) over visual appeal and avoid biases, we conducted feedback sessions specifically on the wireframes. By doing so, we aimed to gather valuable insights and input from users, which would help us refine and improve the information architecture of our proposed solution.

We developed a functional prototype of the wireframes and held feedback sessions with the Procurement Managers during a field visit to Bihar. This allowed us to observe and gather feedback on the usability of our solution in the actual working environment of the users.

To prioritize user experience (UX) over visual appeal and avoid biases, we conducted feedback sessions specifically on the wireframes. By doing so, we aimed to gather valuable insights and input from users, which would help us refine and improve the information architecture of our proposed solution.

We developed a functional prototype of the wireframes and held feedback sessions with the Procurement Managers during a field visit to Bihar. This allowed us to observe and gather feedback on the usability of our solution in the actual working environment of the users.

Through these feedback sessions, we gathered valuable user insights and observations. Based on the feedback sessions, we made the following decisions:

Categorise the bids into three tabs: New, Interested and Rejected Bids Tabs

Add a summary statistics section in each demand, displaying information such as total offers received, total quantity bid, and average price bid by farmers and vendors for that particular demand

Enable procurement managers to share demands via WhatsApp with farmers and vendors, allowing them to share the demands with new vendors who may not be registered in our database.

Retain the Demand progress bar and provide information about personal contribution.

With positive user feedback and clarity on the required decisions, we proceeded to finalise the designs for our solution.

Design Phase

We have developed over 50 screens to enhance the user experience and ensure a user-friendly journey throughout our solution.
Here are a few of the impactful Flows & Features and scenarios that we ideated and converted into designs successfully :-

We have developed over 50 screens to enhance the user experience and ensure a user-friendly journey throughout our solution.
Here are a few of the impactful Flows & Features and scenarios that we ideated and converted into designs successfully :-

User : State Heads

Step 1 : Demand Creation

User : Farmers & Vendors

Step 2 : Supplier Bids Placement via Whatsapp

Providing a User Friendly Experience for the Farmers & Vendors via whatsapp campaign with which they would be able to get instant updated regarding Dehaat's demands, improving communication and timely response.

A user-friendly WhatsApp campaign was introduced to keep farmers and vendors instantly informed about Dehaat’s demands, improving communication and enabling quicker responses.

User : Procurement Managers

Step 3 : Real Time Negotiation & PO Creation

User : State Heads

Step 4 : Approval of Purchase Orders for Demand Completion

Impact

Enhanced Supplier Reach

Approximately 216 Vendor Bids were received per demand (as opposed to approximately 20 Bids per demand before the launch of RTPO), resulting in a significant expansion of the supplier network.

Improved PO Conversion

Around 110 (71.89%) Vendor Bids (wherein a Procurement Manager had expressed their interest) were successfully converted into purchase orders (POs), indicating the effectiveness of our feature in driving procurement outcomes

Around 110 (71.89%) Vendor Bids (wherein a Procurement Manager had expressed their interest) were successfully converted into purchase orders (POs), indicating the effectiveness of our feature in driving procurement outcomes

Improved Margin

Dehaat's Procurement Team experienced a substantial increase in profit margin per demand received, rising from 1.5% to 2.3%

Conclusion

The implementation of the RTPO feature has positively impacted procurement optimization. The use of a WhatsApp campaign to broadcast demand to vendors has increased vendor responses significantly. Moreover, the PMs' active engagement with vendor offers, particularly those containing price and quantity information, has resulted in a commendable 60% conversion rate of vendor offers into purchase orders (POs).

To further improve the procurement process, it is important to encourage vendors to provide complete offers and explore ways to enhance communication channels. By addressing these aspects, the RTPO feature can have an even greater impact, enabling more streamlined and efficient procurement operations.

The implementation of the RTPO feature has positively impacted procurement optimization. The use of a WhatsApp campaign to broadcast demand to vendors has increased vendor responses significantly. Moreover, the PMs' active engagement with vendor offers, particularly those containing price and quantity information, has resulted in a commendable 60% conversion rate of vendor offers into purchase orders (POs).

To further improve the procurement process, it is important to encourage vendors to provide complete offers and explore ways to enhance communication channels. By addressing these aspects, the RTPO feature can have an even greater impact, enabling more streamlined and efficient procurement operations.

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Transforming Farmer & Vendor-Centric Procurement