Wholesalers & exporters of fresh fruits & vegetables.
DID YOU KNOW?
A bundle of parsley which is picked in Lebanon in the morning can be enjoyed in Dubai in the evening on the same day?
WHAT’S THE INNOVATION?
Karma’s innovation is in its business model which added value to the fresh produce export business in several ways. First of all, they shortened the supply chain by procuring produce directly from the farmers and selling them directly to the retailers.
Then, they reduced transit time shipping their produce by air instead of land or sea freight. To improve the process even further, they partnered with DHL International which offered them exclusive cold storage at Beirut RH Airport, made accessible dedicated customs clearance and launched scheduled flights of DHL’s own cargo planes to transport Karma’s produce faster and more efficiently than regular commercial flights.
WHAT’S THE STORY BEHIND THE INNOVATION?
For many years, Khaled Sinno, founder of Karma, ran the produce section of his family’s supermarket business. Exports started with trial shipments to customers in the Gulf and Europe and started picking up gradually until it outgrew supermarket retail, which was later phased out.
Owing to experience accumulated in years of dealing with retail customers, the business plan was totally consumer-centric and focused delivering a unique customer end-user experience. Hence, the only way to add value and consistently deliver products that responded to the ultimate tests of freshness, durability and taste, was to modify and improve the existing supply chain.
Historically, Lebanese fruits and vegetables reaching export markets were not of premium quality. The main reason was the long supply chain which firstly demanded lower farm prices thus pushing the lowest quality produce through the export pipeline, and secondly asked for high retail prices to make it worthwhile for all those in the middle. And because transport was done by road or sea, produce arriving to export destinations after a long journey was tasteless, flavorless and did not last long.
As such, Karma worked on an innovative business model to resolve these issues.
WHY IS IT IMPORTANT?
An expedited and consistent process means first and foremost a satisfied end-consumer who enjoys really fresh produce and always comes back for more.
WHO IS BENIFITTING?
A shorter supply chain means fresh produce is sold at a reasonable price tag and not a prohibitive one. It also allows the farmer to sell produce at higher prices and profits and expand his business accordingly.