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:
1. 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.
2. Explain how the “proximity platform” sourcing model can affect Supercompra’s financial performance.
3. 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.