Foods and drinks become very important for human to be able to run their life, this requirement is called with primary needs. If the first time humans get these primary needs by collecting, along with the development of technology, human can get this needs with the distribution. Distribution is a marketing activity that provide facility the delivery of goods from producers to consumers, so the use is suitable with the required (type, amount, price, place, and when needed). Distribution is done by the consumer market, one of the world’s largest consumer markets is a grocery market, which distributes goods from factory to consumer.
Grocery Market Challenges
Abuses Of Buyer Power By Retailers
The global grocery industry is dominated by mass-market retail chains. At the national level in many countries, a large share of the grocery market is frequently in the hands of few retailers. While some amounts of buyer power are understandable and simply desirable for competitive advantage, the high level of concentration causes a growing imbalance of buyer power within the supply chain.
Exerting buyer power is natural when not abused. It is understandable that any industry participant would seek bigger volumes as a tool for negotiating better prices. But retailers push the limits of what is fair. Grocery retailers are perpetually and aggressively extracting better terms from already squeezed manufacturers, going far beyond the benefits a player should receive for attaining economies of scale.
Retailer buyer abuse extends beyond normal pressure . The explanation of this pressure is abuse of buyer power. Such power allows retailers to determine what will and will not be stocked, and on what terms, such as sources, quantity, quality, delivery schedules, packaging, returns policy, and above all, price and payment conditions. Indeed, a supermarket company wields an important bargaining chip, namely the threat to stop selling one or more products.
Supply Chain Inefficiencies
High distances between manufacture and consumption . The average meal in the US travels about 1,500 miles to get from farm to plate. This problem is relevant for many countries and leads to acute financial and ecological consequences with significant adverse impact in the long-term. Food miles, the distance food travels from the place it has been grown to where it is ultimately consumed or purchased, increase significantly when buyers import food from other parts of the country, region or world
Waste in various areas of the supply chain. In distribution centers and on grocery store shelves, food is being wasted. Every night, some perishable items must be thrown out. According to a recent survey, 400 million pounds of food is served by supermarkets, yet nearly a third of it is wasted annually. Unfortunately, current retail systems are designed to reduce stock-outs rather than measure and manage food waste. Therefore, managers optimize to ensure food is left over on the shelf.
Trade Promotions Are Ineffective, Costly And Outdated
Grocery manufacturers spend up to 17% of their sales on trade promotions. Trade promotions comprise a growing category of manufacturer expenses directed to wholesale and retail distributors rather than to consumers. Manufacturers spend more than $500 billion on trade promotions annually12, and according to some reports 66% of that spend generates negative returns and leads to higher grocery prices.
The INS ecosystem will provide solution for grocery market challenges by providing an ecosystem, wich will become first global decentralized grocery marketplace where consumers can buy products directly from manufacturers, enjoying low transparent prices. Manufacturers compete for consumers and interact with them directly
How INS Works
- Directly connects grocery manufacturers and consumers
- Overcomes retailer domination
- Offers a variety of smart contracts to facilitate operations
- Uses the INS token as means of consumer loyalty program rewards
Advantages of The INS Ecosystem
- High-quality groceries cheaper than in stores
- Groceries bought online easily and conveniently
- Unlimited access to suppliers of choice
- Full control of product pricing and listing
- Marketing and promotion directly to consumers
- Fast and detailed customer feedback
The ecosystem will be built in accordance with a scalable and decentralized approach that ensures stability and sustainability in the long term. The ecosystem will involve the following participants, which will participate as depicted in the next diagram:
The INS Platform is a decentralized marketplace that allows manufacturers to join, publish their products for sale, carry out promotion and loyalty campaigns, and get feedback from consumers. It enables consumers to order those products and facilitates the order fulfillment process.
Consumers are individuals or companies that want to buy online high-quality groceries at cheaper prices. Orders can be placed via the INS website, INS app or custom apps derived by manufacturers from the app reference implementation.
Manufacturers are companies or individuals in the business of fresh produce, groceries and consumable household items. They range from local farmers to large multinationals, such as Procter & Gamble, Unilever, Coca-Cola, etc.
Fulfillment (fulfillment center operators and workers, couriers)
Fulfillment center operators are owners or lessees of existing warehousing facilities and/or
delivery fleet. They provide the space where workers take products delivered by manufacturers
and assemble orders.
Fulfillment center workers, employed by a fulfillment center operator or acting as independent
contractors, will follow instructions received via the INS fulfillment app to:
- Collect products delivered by manufacturers to fulfillment centers
- Assemble products into orders
- Pass assembled orders to couriers
Couriers, employed by a courier company or acting as independent contractors, will follow
instructions received via the INS fulfillment app to:
- Pick up orders from fulfillment centers
- Deliver orders to consumers
After the ICO period, all contributors will receive an EIP20 exchangeable INS tokens on the Ethereum network. Whenever the INS blockchain is launched with its own token mechanism, the EIP20 token will be always accepted for exchange to a new token 1-to-1.
The INS token is a core component of the INS ecosystem and is designed to facilitate all kinds of operations that make the token an integral part of the ecosystem and the driver for itseconomy. The INS token is fractionally divisible, transferable and fungible.
The token balances and transfers will be tracked by INS. In the case of any force majeure, such as large token theft, contract compromise, or a disrupting change of Ethereum protocol, INS may opt to freeze token transfers and issue a new token contract with balances replacing that of the original token registry by certain date. In the case of an Ethereum fork, INS will properly announce which branch it will support.
The INS token is planned to be the only means of exchange for handling all types of rewards and one of the means of payment within the INS ecosystem. and also INS tokens which planed will be accepted as a payment method in partner services.
Start date: 11:00 AM (GMT) on November 27, 2017
Payment methods: BTC, ETH, LTC, DASH, USD (bank transfer)
Target: 100,000 ETH
Soft cap: 30,000 ETH
Hard cap: 150,000 ETH
Token exchange rate: 1 ETH = 300 INS tokens
Total token supply (max): 100,000,000
Min purchase: 0.1 ETH