ProduceX came on the scene just more than a year ago with the lofty goal of helping produce distributors dramatically reduce losses and improve business efficiency with the use of cutting-edge AI technology.

Founded in Austin, TX, in early 2024 by three supply-chain and technology executives, ProduceX endeavors to deliver an all-in-one AI-powered platform that helps produce wholesalers and distributors in a number of ways.

“We are called ProduceX, which is short for Produce Excellence, because we focus on the very heart of the food supply chain: fresh produce,” said Shivam Sheel, co-founder and CPO.

Sheel said the main features ProduceX offers are the ability to automatically track inventory via AI vision, thus eliminating the need for manual scanning or line-by-line input; the ability to convert plain text orders, such as emails, texts and voice notes, into digital sales, invoices and pick lists; the capability to read any industry barcode, negating the need for custom labels; and digitizing proof of delivery with its SafePOD mobile app for instant invoicing and faster payments.

While doing their due diligence when forming ProduceX, Sheel said he and his co-founders spoke with many growers, shippers, wholesalers and distributors and were stunned by what they learned, including:

• 40 percent of all produce is wasted annually due to lack of real-time inventory and forecasting, representing about $218 billion in losses;
• Approximately $18 billion is lost each year due to stockouts, overstocks and spoilage from disconnected systems; and
• Teams spend more than 100 minutes each day on manual order entry, with about half of deliveries arriving late.

“These conversations, and early pilots we had with partners like Centex Produce, made it clear that produce companies are desperate for simple, AI-driven tools to eliminate waste, speed orders and bring transparency to every step from farm to fork,” said Sheel. “ProduceX was born to fill that need.”

Sheel said he and his co-founders identified five critical pain points in produce operations where ProduceX can deliver immediate impact:

Real-time inventory control
Distributors lose millions to spoilage and stockouts because they rely on periodic counts and spreadsheets, said Sheel.

“Our AI Vision continuously tracks every item in real time, which drives down waste, optimizes reorder points and ensures product freshness,” he said.

Streamlined order processing
Sheel said teams spend hours manually retyping orders from emails, texts and faxes, leading to delays and entry errors.

“With Natural Language Order Optimization, ProduceX converts any plain-text request into a ready-to-ship order,” he said. “This frees staff to focus on customers, not data entry.”

End-to-end delivery and payment verification
Paper-based proof of delivery causes invoicing delays, payment disputes and lost revenue.

“Our SafePOD app captures signatures, timestamps and payments in the field – accelerating cash flow and reducing disputes,” said Sheel.

Predictive forecasting and analytics
Without demand insights, Sheel said, companies overstock perishable items or miss sales during peak demand.

“ProduceX’s AI-powered forecasting anticipates demand trends, helping clients buy smarter, plan routes more efficiently and minimize spoilage,” he said.

Universal bar code compatibility
Custom labeling systems force costly reprinting and manual tracking workarounds, according to Sheel.

“ProduceX supports every industry standard barcode, thus eliminating label hassles and integrating seamlessly with existing workflows,” he said.

Sheel said ProduceX is designed to be used by any business that handles fresh produce throughout the supply chain.

Grower-shippers can benefit by improving their management of farm loads and packing operations, while wholesalers and distributors can better manage high-volume orders and multi-site inventories. On the buy side, retailers and foodservice purveyors can monitor precise stock levels and coordinate rapid replenishment.

“Our cloud-native modular architecture ensures seamless scalability,” he said, indicating that companies of all sizes can benefit from ProduceX.

Small distributors can be up and running in a matter of days with core inventory and order automation, he said. Mid-size operations can see immediate benefit with SafePOD delivery verification and AI forecasting as needs grow. Large enterprises may look to integrate with SAP, NetSuite or custom ERPs via ProduceX’s open API, as well as support multi-location rollouts and enforce corporate governance.

“Whether it’s a family-run wholesaler or a national produce network, ProduceX scales with them,” said Sheel.

He said the onboarding process for clients typically is less than a month and starts with a Discovery Call, where ProduceX learns about a company’s workflows and an agreement is reached on success metrics, with no need for a “technical deep dive.”

The next phase occurs during the first week, when ProduceX’s AI fine-tunes itself to a client’s inventory and order patterns, with no need for manual configuration. Pilot key processes are established and settings are tuned based on client feedback.

In phase 3 during weeks two to four, client staff are trained during team sessions on scanning, ordering and delivery workflows. The system is then rolled out across a company’s operations, with zero downtime, and ProduceX provides ongoing support through a helpdesk and automatic monthly updates to keep things running smoothly.

Sheel added that ProduceX is built for sustainability, as the system drastically cuts paper use and reduces spoilage. Additionally, ProduceX is integrating with cold-storage providers, logistics platforms and packinghouse consultants to create a seamless, end-to-end supply chain network.

“There is a measurable ROI from using the ProduceX system,” said Sheel. “Early pilots have delivered 10-15 percent operating cost reductions and up to a 66x ROI within the first year, demonstrating AI’s power and practicality in a traditionally low-tech industry.”

Centex Produce, an Austin-based importer-distributor of produce from Mexico and an early adopter of ProduceX, has already seen the benefits.