Supercompra Case

Supercompra was a secondary of Grupo Mazaplan which is an Ecuadorian multinational corporation that has more than 30 years of professional experiences with retailing department. In 2006, the company had 5000 employees in over 39 supermarkets, 6 hypermarkets as well as 18 hard discount stores all over the world. Their vision was to be one of the leaders and form steps in the retailing business field. Furthermore, growing, innovating and promoting free and healthy competition with other competitors to achieve better customer contact/service was the company’s mission. Supercompra wanted to decrease their indirect purchases by using middle retailers and increase its quality control and attain more control over their deliveries.

They are debating whether they should remove the current model and progress a new model for their distribution system to get stronger/enhanced control over the quality and customer service.

Zapata is an incoming CEO at the Supercompra and is worried about the improvement of their purchasing tactics. He presented shortening their material supply chain system to make it direct in order to decrease the costs of customers’ expense and to provide quick customer service for their needs. Less volume farmers were satisfied with the profits that the Pallatanga platform brought but then it caused the tension between the Supercompra and the farmers.

Supercompra will have minus profit if they continue their work with the small farmers for a while because it can cause huge wasting of their assets, controls and relationship with their resources. However, I would actually recommend the Supercompra not to give up on this upgrading strategy but focus more on it by experiencing down falls and forming better strategies to minimize the problems/issues but maximize their business by using shorten strategy. This strategy will allow them to save lots of time, labor force, of course total expense and increase their profit.