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Supercompra: Sourcing from Small Andean Farmers As Juan Pedro Zapata, Supercompra's CEO, what is your recommendation for Supercompra in the face of small supplier withdrawals, given its procurement go
Supercompra: Sourcing from Small Andean Farmers
As Juan Pedro Zapata, Supercompra's CEO, what is your recommendation for Supercompra in the face of small supplier withdrawals, given its procurement goals and the parent company's business objectives. Specifically:
- Evaluate the pros and cons for Supercompra's old and new purchasing models, namely: (1) decentralized "proximity platform" and "logistics platform" direct purchasing, and (2) centralized indirect purchasing from national middleman/distributor.
- Explain how the "proximity platform" sourcing model can affect Supercompra's financial performance.
- Considering the two options - (1) rekindle relationship with small farmers, or (2) continue to expand relations with bigger farmers and local distributors--what is your recommendation for the proximity platform program. Please justify your recommendation and provide supplier management plans in moving forward.
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******* the ********** of ******* ** *** business and *** **** of *********** ** *** ****** ****************** new ********** ***** ** ***** ** * *********** ******** ********** from ******** middleman/distributor **** ***** *** several advantages ********* *** ******* to source **** * larger number of ******* ** ****** ***** ** eliminating *** need for a large ******* of ***** ******* *** ** reduce *** **** ** *********** ** *** ****** ***** ******* **** ***** **** has **** ************* ********* *** **** ** **** ** ************** ** ******* quality *** risk of losing ******* ** *** ****** ***** *** *** *********** ** ****** ************* *** the ********** ********* ******** ***** *** ****** ************* financial performanceThe "proximity platform" ******** ***** *** affect ************* financial performance ** * ****** ** waysFirst by ******** ******** **** ***** ****** ******* *********** *** ***** the high costs associated **** ******** **** large ********** ***** *** high ***** of ******** **** large commercial ***** are ******* these ***** *** ********* located *** **** ************* ***** ********* This ***** **** *********** ***** **** ** ***** high ************** costs ** ***** to ***** *** ******** from *** ***** ** its stores ************ *** large commercial ***** ********* **** ****** production costs than ***** ****** ******* This ** because *** large commercial ***** **** ** use **** ********* ****** **** ** ********* and pesticides in order to ******* ***** *********** by ******** ******** from local farmers *********** *** reduce *** transportation ***** *** improve its logistics This ** because *** ***** farmers *** ********* ******* near Supercompra's ***** locations **** ***** **** *********** ***** *** **** to ***** **** ************** costs in ***** ** ***** the products from *** ***** to *** ****** ************ sourcing from ***** ******* would ***** *********** to ******* *** ********* **** ** ******* *********** would ** **** to ******* *** ******** **** the ******* on * **** regular ************ by ******* **** ***** ******* *********** *** develop * ****** understanding ** ***** ***** *** *********** **** *** lead ** ********* ******* and ****** ******** **** ***** ******* ******* ** ******* with ***** farmers *********** can **** to ****** **** *** **** ******** development ** *** ****** ***************** *** two options * *** rekindle ************ with ***** ******* or *** ******** ** ****** relations **** ****** ******* and local distributors--what ** **** ************** *** the proximity ******** ******* ****** ******* your ************** and provide ******** ********** ***** ** moving ************* ** ********** *** ************ **** ***** FarmersSupercompra ****** ******** *** relationship with ***** ******* ** ***** ** ******* *** ******** ********** ***** are ******* ******* for *** **** ** *** **** ****** *** *********** First ** rekindling *** ************ *********** **** **** * **** ****** connection **** *** ******* ***** **** ***** *** ****** ************* *** coordination ****** ** ******* **** small farmers *********** **** ** able to develop * **** personal ************ **** **** ***** *** lead ** ***** *** ******* ******* small ******* *** more ****** to ** responsive ** *************** ***** and ******** *** **** **** ** **** ** ******* *** company **** ***** ************ ********** ***** ** ******** *** relationship with ***** ******* *********** ****** ***** ******** *** ******* *** are ********** ** working with the ******* ***** **** Supercompra should ***** *** ** these ******* *** ********* communication channels *********** should **** ******* a ******** management **** **** ******** ******* ********* **** the farmers ******* ***** ************ *** providing feedback ** ********* ***** steps *********** will ** **** ** ******* *** ******** management and establish * better relationship **** small ******************************** ***** Celli *** ******* ***** (2015) ************ ******** from ***** Andean ***********