The agribusiness giant is test-marketing Harvest Partners Network this month in the Coastal Plains of North Carolina and the Midwest. The nationwide network will initially provide Internet access and two-way communication between distributors and retailers up to 20 times faster than dial-up connections, plus instant 24/7 access to a broad menu of business information. In addition, subscribers can connect multiple locations within a company via a virtual private network (VPN) system. As grower subscribers are also phased into the network, it will allow one-on-one confidential communication between retailers and their customers through a secure local connection.

The network is part of the BASF pledge to be the “leading supplier of information technology to the channel,” says Rick Patton, marketing and operations manager. “Our market research shows retailers have two primary concerns — building deeper customer relationships and lowering costs through increased business efficiencies. Harvest Partners Network will help them do both.”

Patton says the time is particularly right for the network's portal strategy. “The Web can scare new users because they don't know where they're going, how to get there or how to get back. Harvest Partners Network is prepackaged with a tremendous depth of information, so you really can't get lost. It will also include all the marketing, news and weather content you've come to expect from a system like DTN, plus the two-way functionality to transfer large data files you're not able to handle on dial-up Internet systems,” Patton explains. High-quality streaming video will feed live market and news analysis and enable comprehensive in-house employee training.

The network offers the potential for relationship marketing through private two-way communication. Suppose, says Patton, your agronomy manager just finished scouting a field and found economic insect levels. He can immediately e-mail digital photos of the pest with his recommendation for spraying. The customer can check the report, view the photo and issue a spraying order within minutes with a click of his mouse.

“We're not trying to change the fundamental business relationship between grower and retailer. We're just bringing an additional tool to the market. Retailers have repeatedly told us that finding their customers on the phone or at home is difficult. This local connection function allows for the retailer to submit the information, and the grower can access and reply on his schedule, usually in a different time frame than the typical operating hours of a retail business.”

Or, say you want to segment customers based on cropping practice or pricing strategy. Through the privacy of the secure local connection, you can make grower-specific offers and close orders in complete confidence. “It gets back to the desire to grow your business through more focused customer attention,” Patton comments. The local connection will be based upon the grower selecting his retailer of choice.

The network enables a single or multi-outlet retailer of any size to build virtual private networks to run enterprise software packages such as inventory management and accounting systems. Patton expects most network users will achieve a cost savings over framed relay systems or slow dial-up programs they are currently using.

You can choose from three levels of network service. They are high-speed Internet for a single user, with up to 400k download speed; up to four computers connected at one location in a local area network (LAN) with up to 600k download speed; and up to six computers at one site with download speed up to 800k. The system providing up to 800k is preferred to establish multiple facilities connected through a wide area network (WAN). Patton notes that the download speeds could in fact exceed those mentioned, depending on the number of users within the office simultaneously on the system. Cost to install the satellite dish and other hardware per location runs about $499. Monthly fees are estimated at this time, ranging from $100/month for a single computer to $199/month for the highest bandwidth system. Patton emphasizes that final packages and pricing are yet to be determined, including an opportunity for a retailer to earn free service based upon grower subscriptions.

Service to farmers is estimated to cost $70 to $79/month, plus installation, for a system delivering 400k download speed. “When growers add up what they're paying now for market news on a monthly basis, plus the cost of a dedicated phone line and Internet service provider fee for dial-up service, I think they'll agree Harvest Partners Network is competitively priced,” Patton concludes.

Networking solutions like the BASF venture are nothing new. The broadband capability is provided by Spacenet, McLean, VA, a wholly owned subsidiary of Israeli firm Gilat Satellite Networks, Ltd. Spacenet provides two-way, satellite-based remote networking for Goodyear Tires, the U.S. Postal Service, Holiday Inn and others. The Spacenet contract includes equipment and bandwidth, plus turnkey implementation and field support.

BASF is committed to the network's long-term success. “We're initially operating on a three-year plan. We expect early adopters to get on board this year and we'll grow from there. I would highly encourage those retailers that want to subscribe to this service to contact their local BASF business reps. We'll be limited to approximately 2,000 installations in 2002,” Patton explains.

BASF envisions the network becoming an industry information platform. “We're inviting other crop protection, seed, livestock and equipment companies to utilize this platform, and we expect to develop business partners within the next six months to continue bringing valuable content,” Patton says.

Other new BASF technology initiatives include the SmartTank Bulk Telemetry System for remote wireless inventory management; WorldAccount, online access to product and account information for distributors; and Your Training Manager, a blend of traditional and on-line learning methods.

For more information, contact Rick Patton at BASF Corporation, Box 13528, Research Triangle Park, NC 27709-3528, 919/547-2065, pattonr@basf.com.

Logging on in Iowa
Don Salge jumped at the chance to test Harvest Partners Network. He manages the Kesley Ag Center, in the heart of rural Iowa.

Salge will initiate the network's high-speed, two-way communication capabilities this spring with local farmers. “One of the cooperators already spends at least one and one-half hours a day on the Internet. He was ecstatic to hear about the new faster service because our dial-up networks are extremely frustrating. It's not uncommon for e-mail to be down for two or three days,” he says.

Salge hopes to have 50 key customers connected to the high-speed network within two years. “I learned long ago the more time you can spend in your customer's face, so to speak, the better off you are. Once we get our information page up and running, we will have a presence in their home office every time they log on. And we can literally communicate back and forth 24 hours a day.” He will also post local market bids, agronomy tips and school news and may run ads for other local businesses.

In addition to higher quality connections and content, Salge estimates the Ag Center will save about $200 a month in fees, compared to current costs for an electronic market and weather service, two dedicated phone lines and Internet provider.

The Kesley facility is owned by United Suppliers, Inc., Eldora, IA. Marketing services advisor Kevin Hinders sees multiple benefits to the network. “On the retail side, communication between locations, even if it's just high-speed e-mail at first, will help tremendously. We'll be able to send files of considerable size and download them fast, where it often takes an hour or more with the slow equipment we have now.”

United Suppliers is interested in networking their company-owned retail locations to their Eldora headquarters. They also see value in linking Eldora directly to their distribution centers.

“In the longer term, networking between our retail locations with distribution warehouses will streamline accounting and inventory control. This is a huge advantage compared to the cost of an expensive land line system,” Hinders adds.

He also expects to see more hits on United Suppliers' Web site because Harvest Partners Network subscribers will not have to go through the dial-up process to access the page.

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© 2007 Penton Media, Inc.