&frnds

A Win-Win for the Entire Supply Chain Ecosystem

The core challenge addressed by the project is the lack of digital connectivity among micro-retailers (colloquially known as kirana stores in India, sari sari in Philippines or warungs in Indonesia) , and consequently their limited access to the benefits of a digitised supply chain. Traditionally, FMCG companies rely on distributor channels, which often have limited reach, particularly in rural and semi-urban areas. The project’s aim was to leverage wholesalers as key players in bridging this distribution gap and formalising their role in the ecosystem. By partnering with wholesalers and retailers, the project offers a win-win proposition: wholesalers gain increased reach and access to data, while retailers benefit from digital ordering processes, better deals, and doorstep delivery.

The beneficiaries of this end-to-end platform are large enterprises on the supply side (e.g. FMCGs who gain from improved access to the last mile and therefore a more targeted delivery of their products and services), financial institutions (Banks, MFIs, insurance companies who are able to provide custom credit solutions with a high rate of repayment and credit recovery), and governments (national/regional e-gov services, Ministries of Agriculture/health/finance who can in time use the power of digital reach to provide relevant e-gov services to micro retailers), or any other entity that desires last mile delivery and access combined with the power of digitisation.

On the demand side, consumers, citizens, wholesalers and retailers/agents (MSME’s)  benefited from access that this agent-led digital platform has provided. Financial service providers in particular formed a key component of this platform, enabling digital payments, credit  and the collection of data through mobile KYC processes and the establishment and streamlining of digital records.

Learnings

Conceptualising, designing, and implementing this project  was a unique process for Quicksand. Here are our top five reflections from the project.

Embedding Design in Organisations and their Operations: Design's integration into organisational processes, especially within startups facing pressures of product-market fit, business model creation, and MVP development, is paramount. Conventionally, design efforts tend to address specific facets of a problem rather than the broader systemic issues. However, Quicksand’s experience of working on innovation mandates with different companies and contexts has often highlighted the necessity of ensuring a more systemic application of design by embedding the design processes and mindset in an organisation's DNA. &frnds as a project served as an opportunity to test this approach and explore the challenges design must address amid various pressures.

Managing Innovation: The project involved managing two tracks of innovations: which we internally labelled as fast and a slow track. The fast track involved immediate iterations to address pressing business requirements. For instance, we conducted multiple design sprints, including one supported by Coca-Cola, to develop a business-critical feature like pay-after-sale, a credit offering for micro-retailers.

Conversely, the slow track demanded strategic planning for significant long-term bets, ensuring alignment with the fast track model at all times. For example, transitioning from an off-the-shelf platform to a native application and conceptually different UX to cater to the needs of principle stakeholders in the supply chain. There was also automation of promo management and offers to the retailers, replacing a manual promo management process. The slow track also included conceptualisation, design and piloting of a rewards program and loyalty program aimed at enhancing retention on the platform.

Financing Venture Design: This project was one of Quicksand’s significant forays into venture design. Developing a viable financing model for venture design, particularly from a design consultancy's perspective, presents unique challenges. While startups are most often in need of strategic design services, they are also strapped for funds to commission a design consultancy. This project was made feasible through a bilateral government R&D grant (facilitated by Technology Development Board, Department of Science & Technology, Government of India) providing access to risk capital with conditional repayment terms. This helped subsidise the cost of design services for the startup, in this case &frnds, while ensuring that we had skin in the game, through a partial fee-for-equity that Quicksand got for its efforts. Our long-term investment approach, with a deferred payout on success, allowed us to embed ourselves within the startup working closely on all aspects of the business.

Right Process for Product Development: Establishing the appropriate process for product development, where design plays a crucial role, necessitates a structured approach. From identifying market needs to rolling out product features, each stage demanded a thoughtful integration of design principles. Challenges encountered, such as user apprehension towards digital technologies and operational hurdles due to geographical distances, were mitigated through a focus on simplifying user experiences and fostering collaboration.

For instance, the path to adoption of technology for last mile users involved many steps in order to help them make a gradual transition instead of introducing high-tech interventions from the get-go. It meant starting with part-digital solutions like OCR  (optical character recognition) technology to capture order receipt images instead of expecting users to input order details into the app. Additionally, reliance on chat-based interfaces of their choice to make the transition towards the mobile app were also experimented with.

Design Leadership: In this collaboration, Quicksand’s project lead was appointed as the design head of the startup, which served a pivotal opportunity in advocating for design within decision-making processes of the organisation. Our ability to create a voice for design among organisational leaders was instrumental in highlighting its importance and ensuring its integration into the organisational culture and strategy. This project also underscored Quicksand’s ability to offer end-to-end product development, venture design consulting, detailed UX analysis, and product management expertise.