Why the CHS-Ag Vend Collaboration Is So Compelling for Agribusiness
Editor’s note: In a recent issue of Upstream Ag Professional, agribusiness analyst Shane Thomas dives into why the recent collaboration agreement between CHS and AgVend is compelling for agribusinesses, illustrating the potential evolution of not only crop input procurement, but demand generation, program management and the makeup of a digitally enabled supply chain in the future. Here’s a summary of that article:
CHS has announced a pioneering collaboration with AgVend, enhancing the digital integration between the AgVend Network, which serves 25% of the North American ag input retail market, and CHS. Starting next month, CHS wholesale crop protection customers will gain access to place orders, view transaction histories, and reorder directly within the AgVend platform. This partnership aims to streamline workflows and improve visibility, making it easier for ag retailers to manage procurement, track shipments, and handle invoices — all within a single platform.
For ag retailers, this integration addresses common challenges, such as the need to switch between different software platforms for product forecasts and orders. It also provides greater visibility into the status of shipments, which is crucial during tight application windows. For CHS, the integration differentiates them as a distributor by simplifying business processes for retailers, potentially improving invoice payment times and offering better insights into demand signals.
This partnership marks AgVend’s expansion upstream in the value chain, moving beyond its traditional retail focus. This move not only adds value for AgVend’s retail customers but also opens new revenue opportunities, as CHS pays AgVend for the added functionality. Additionally, AgVend’s vision of creating a more resilient and dynamic agricultural supply chain is reinforced through this collaboration.
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AgVend has introduced a new product suite called AgVend Nexus, with this CHS partnership being the first offering within it. The Nexus suite aims to provide tools that benefit distributors, manufacturers, and other third parties by enhancing procurement, marketing, and sales data management. This development is crucial as the industry continues to face supply chain challenges, and tighter integration between manufacturers, distributors, and retailers is becoming increasingly important.
The announcement is not exclusive to CHS, suggesting that other distributors may also benefit from AgVend’s procurement functionality in the future. Overall, this partnership between CHS and AgVend signals a significant step forward in digitally enabling the agricultural supply chain, with the potential to revolutionize crop input procurement and beyond.
For more in-depth coverage, visit Upstream Ag.
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