Assignment:
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.
Readings:
Supercompra: Sourcing from Small Andean Farmers
By Josefina Bruni Celli and Manuela Plaza