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Alicorp's Casino Cookies: Market Strategy

This document contains information about a research on Alicorp and its Casino cookie product. Alicorp is the leading Peruvian company in mass consumption, producing and marketing food and industrial products. The document describes the company, its values, and main brands such as Casino cookies, and provides details about the flavors and value that this product brings to the consumer.

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0% found this document useful (0 votes)
7 views37 pages

Alicorp's Casino Cookies: Market Strategy

This document contains information about a research on Alicorp and its Casino cookie product. Alicorp is the leading Peruvian company in mass consumption, producing and marketing food and industrial products. The document describes the company, its values, and main brands such as Casino cookies, and provides details about the flavors and value that this product brings to the consumer.

Translated by

ScribdTranslations
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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RESEARCH WORK

EMPRESA: ALICORP- PRODUCTO GALLETAS CASINO

Members

Espinoza Almerco, Mónica Fabiola

Yarlequé Velásquez, Paola, Carolina

Rodríguez Córdova, Flor de María

Teachers

Ponce, Carlos Iván

11 de Diciembre del 2020


INTRODUCTION

Alicorp is the most important Peruvian consumer goods company in terms of volume.
for sale.

Over time, Alicorp has experienced significant expansion and growth in its sectors.
using international quality and competitiveness standards. This company has
incorporated into the new campaigns and have adapted quickly, it has allowed them
increase their profit margin.

This paper contains a research plan for strategic planning and control.
applied to the company Alicorp, which embodies the commitment to develop, produce and
to market food and mass-consumption industrial products for the purpose of
maintain customer satisfaction in the different national markets
international quality and competitiveness.

This work will help us apply everything we learned in the Management and Supply course.
Goods and Services.

COMPANY DESCRIPTION

Alicorp is a company dedicated to the production of


mass consumer industrial products and animal nutrition, most important in terms
of sales volume. Its main activity is the manufacturing and distribution of oils and
edible fats, noodles, flour, cookies, soaps, detergents, sauces, soft drinks, food
balanced and personal and household care products. Additionally, it is responsible
from the distribution of third-party products. The Company has made various acquisitions
that have allowed it to increase its productive capacity and its product portfolio,
consolidating its presence in the markets in which it operates. Likewise, through
the acquisitions made have been able to enter international markets and expand their
regional operations.

Currently has its own operations in Argentina, Ecuador, Colombia, Chile, Brazil.
Peru with commercial offices in Central America.

Vision: To be leaders in the markets in which we compete.


Mission: We transform markets through our leading brands, generating
extraordinary experiences for our consumers. We seek to constantly innovate
to generate value and well-being in society.

Values:

We lead with passion: We are passionate leaders in everything we do. We are


entrepreneurs, with a winning spirit and courage that motivates us to innovate and
transform markets.
We are connected: We feel the organization's objectives as our own and the
We achieve excellence. We work connected to generate value and well-being.
- Somos ágiles y flexibles: Somos un equipo ágil y flexible sabemos tomar riesgos
aprendemos de nuestros errores y celebramos nuestros éxitos con humildad.

Strategic Pillars:

Growth: We seek to be leaders in the businesses we are involved in. We


we have set challenging but achievable goals with growth above
levels of the markets in which we compete. Our commitment is to continue to
sustained and efficient manner.

Efficiency: We are building a culture of efficiency with a discipline of


simplicity and agility and with the commitment to act as owners being efficient in
everything we do.

People: We trust and develop the talent of our people to strengthen our
culture, what will drive us towards growth objectives. We seek to share
knowledge and experiences and bring the Alicorp Culture wherever we go. We are
working on strengthening our governance model and our roles.
Alicorp is a leading mass consumer company in the Peruvian market, with
industrial operations in six Latin American countries: Argentina, Brazil, Chile,
Colombia, Ecuador and Peru, where its main headquarters is located.
Exports to more than 23 countries and is the second largest consumer goods company in
the Andes.

Manages more than 125 leading brands in the mass consumer markets, products
industrials and animal nutrition; creates extraordinary experiences for consumers;
innovates permanently, creating well-being for society.

Main brands:

Don Vitorio and Lavaggi Noodles


Bolívar and Opal detergents
Primor and Cocinero Oils
Bolívar and Marseille soap
Bolívar Fabric Softener

Casino and Temptation Cookies


Manty Margarine
Alacena Mayonnaise
Tarí chili cream
Bold Soft Drinks
Black Mazamorra
White Flour Flower
Red Salsa Don Vitorio
Sayón Panetones
Angel Cereals

ORGANIZATION
Alicorp is a formal organization because
have a very well-defined hierarchy and
structured. The positions assigned within
the company is respected and the organization
of this help both to internal businesses
like the internationals.
Additionally, it has a Committee Structure because authority and responsibility are
shared jointly by a group of people instead of one.

Enjoy the flavor: Casino Cookies

What necessity satsface cookies Casino?


Casino satsface the physiological need of hunger. It presents you with a variety of options.
and flavors for the customer to choose how they want to please their taste. The Casino cookie seeks
More than satisfying its consumer, it wants them to enjoy the experience.

What is the value of Casino cookies for the


consumer?
The casino knows that the customer not only wants to satisfy their need, but also seeks to enjoy.
the experience. To that end, Casino offers you a product that impacts the five senses of
consumer: sight, with the exclusive presentation of the cookie packaging; smell, with the
provocative aroma of the essence of the cookie; the touch, with the consistency and texture of the
cookie; the taste, for the pleasant intensity of the flavor of the cookie; and finally, the hearing, with the

sound produced when consuming the cookie.

And what are the varieties of Casino?


Casino, considering the different tastes and demands of the customer, offers you a wide list of
flavors, for you to choose from your favorites
CASINO COOKIE

Casino was born in the mid-80s under the name 'CASINO ROYAL'; they represented a novelty as they were cookies filled with cream.
with a fruit flavor and quickly thanks to its advertising aimed at children recreating fairy tales, it manages to position itself among the
children.

Also, in the first decade of the 2000s, at the end of the 90s when the brand was already strong among children, was when the first occurred.
expansion of target audience, among teenagers, giving them a fresh and appropriate message

at her age, starting to work on the concept "CASINO FULL CREAM" that accompanies the

brand until now

Currently, the Casino cookie is considered as a classic in the candy market already
whether for economic value or for social value that accompanies the brand.

CASINO COOKIE FLAVORS

Quality of supplies

The quality system in the supply chain involves a series of advantages.


for the company that implements it. The greatest profitability is one of them, but
There are also other reasons related to profitability in competitiveness that make

its application is essential.


The quality system must meet certain standards throughout the supply chain, resulting in shorter times.
of delivery. This results in greater customer satisfaction and their consequent loyalty.

On the other hand, good supply chain management involves developing a series of preventive actions that the company must
apply to avoid supply issues.

1.1 Dimensions of quality

It refers to the components of quality. Also called attributes or elements.

Performance: Alicorp is characterized as an important mass consumption company in terms of sales volume, it is dedicated to
to the production and marketing of food and derivatives, among them we find Casino Cookies.

Characteristics: The Casino Cookie is characterized by its pleasant taste, and its shape is rectangular and filled with a lot of cream.
a flavor that will delight children, young people, and adults. You can also look for its flavors of strawberry, chocolate, mint, vanilla, coconut, and

alfajor.

Reliability: Alicorp Company ensures the safety of its product to the public by implementing certain filters, among them is that the

The Quality Assurance Department is responsible for conducting analyses of raw materials. This department has
with an advanced laboratory that daily implements quality systems and applies them to the different processes related to the
flour used.
Durability: Consume before the expiration date indicated on the packaging; this indicates until what date the food remains
its properties intact, as long as the packaging has not been opened. From that date, the product starts to lose some
of its physical qualities, but its consumption remains safe.

●Compliance: It is the only filled cookie on the market that offers a larger amount of cream inside.
sector of cream-filled cookies with fruit flavors. To check that it contains more cream than other cookies, it
You can check the back of the packaging for the quantities of ingredients and the weight of the product itself.
Serviceability: The serviceability is the speed at which the product can be returned to service.
There are service channels through the website, in person at the company or with advisors in order to resolve
The problems in case there are batches of expired or spoiled cookies.

●Aesthetics: Net content of 43 grams in a very easy-to-open plastic wrapper which includes a pack of 4.
cream-filled cookies. Among its main flavors are mint, strawberry, chocolate, vanilla, lucuma, alfajor, and coconut.

Perceived quality: The casinotene cookie has a wrapper of various colors, generating the buyer's attention.
it also satisfies the physiological need for hunger. It offers a variety of presentations and flavors so that
the client chooses how they want to please their appetite. In addition, they seek to satisfy their consumer, wanting them to enjoy the

experience, knows that the customer not only wants to satisfy their need, but also seeks to enjoy the experience.
For this, Casino offers you a product that impacts the five senses of the consumer: sight, with the exclusive
presentation of the cookie wrapper; the sense of smell, with the provoking aroma of the cookie essence; the sense of touch, with the
consistency and texture of the cookie; the taste, for the pleasant intensity of the cookie's flavor; and finally, the
ear, with the sound produced when consuming the cookie.

1.2 Deployment of quality function

It is a method to seek to develop new products with higher quality, at a lower cost, and in less time.
1.3 Statistical process control
Statistical process control is a working methodology in the industry,
companies, services, laboratories, educational institutions, among others; with the purpose
to ensure and control that a process responds in a stable, predictable manner, within
from the established tolerances and to develop decision criteria for detection of
deviations with the start of corrective actions that reduce costs and
continue on the path of quality control and process improvement.

OBJECTIVE

Identify, interpret, and analyze quality measurement tools focused on


improve productivity by reducing waste and variability
processes, achieving excellent levels of competitiveness and profitability for the
organizations.
Apply appropriately the tools of process control,
allowing for joint and coordinated management of process control and of the
resources.
Acquire criteria for discernment to solve problematic control issues.
processes.
Manage the necessary resources for process control from a perspective of
world-class company.
Tired workers
Evaluation of Hermeticity of poorly made cookie packaging
Belt speed very fast.
Machinery in poor condition.
Defective pre-mix
Conveyor belts in poor condition
Lack of supervision in production
Staff with little experience
Lack of production supervision
Damaged packaging
Uncalibrated machinery
Bad supplier of ingredients
Poorly located containers
Lack of ventilation

CAUSE AND EFFECT DIAGRAM (ISHIKAWA)


CHECKLIST
Pareto Diagram

2. INVENTORY MANAGEMENT

Inventory management aims to balance investment and actual demand.


offered product, in such a way that both business needs and those of
the clients.
Decisions must be made on how the investment will be financed in order to maximize the
objectives.
Inventory management involves determining where to invest, of the quantity of
inventory that must be maintained, the date when orders should be placed, and the quantities of
units to be ordered. It requires coordination between the sales, purchasing, production, and
finances.

2.1. ABC classification of inventory:

The ABC method classification involves dividing the inventory into three groups to determine the level
control procedure types.
Given the variety of products or services offered by Alicorp, it is necessary for indirect costs
are distributed correctly, so ABC costing becomes the ideal system to achieve the
allocation of indirect costs, allowing for decisions to be made about pricing.
mixtures of products and improving the production process, providing a clearer view of their costs
operation.
The control of product 'A' must be the most careful given the magnitude of the investment.
understood, as long as products 'B' and 'C' would be subject to less control procedures.
strict.
Having the production data in which they are dedicated to the production of casino cookies
different flavors.
The products are made from the moment the production schedule is issued to
to be available in a timely manner for dispatch to the client.

% PRODUCT %
% VALUE
PRODUCT UNIT P. UNITARIO AMOUNT % VALUE ABOUT INVENTORY ZONE
Accumulated
INVENTORY Accumulated
CASINO
30000 0.80 24,000.00 40.0% 40.0% 40.0% 40.0% A
CHOCOLATE
MENTAL CASINO 25000 0.80 20,000.00 33.3% 73.3% 33.3% 73.3% B
CASINO
20000 0.80 16,000.00 26.7% 100.0% 26.7% 100.0% C
VANILLA
TOTAL 75000 60,000.00

2.2 Calculation of the optimal order quantity:

The company sells an average of approximately US$ 180 million annually, of which 59% comes from
From the sale of casino biscuits, we have a 25% contribution margin.
Casino Cookie
Demand: 20,000
Unit cost of the product = 0.80
Order cost = 70
Mantenimiento = 25% = 0.25

H = 0.80 * 0.25 = 0.20


EOQ= √2(20000)(70) =√140000 = 374.165
0.20

2.3 Calculation of the reorder point:

Knowing that the reorder point is the minimum quantity of stock of an item, so that
When the stock reaches that quantity, the item must be reordered.
This term refers to the level of inventory that triggers an action to replenish that inventory.
particular.
A order must be placed before the inventory runs out, but if it is ordered too early, it will be wasted.
more for storing these articles in excess. And if the order is made too late, the insufficiency
it will generate dissatisfied customers who will look for another competing product.

Reorder point:
Demanda anual = 20000
Días trabajados=365 días
Product waiting time = 10 days

20000
D= ∗10 = 730,000 units
365

The reorder calculation states that every time the inventory reaches 730,000 units, then it
You must order a batch of casino cookies of different flavors.

The processes of greatest importance for achieving the strategic objectives of the organization, the
the same ones that are aimed at increasing profitability through the sales of products from
quality, maintaining a cost-effective structure, all under its chain of command at the level
organizational.
3. MATERIAL REQUIREMENT PLAN

PRODUCTO: GALLETAS CASINO


Casino cookies with chocolate flavor filled with cream. Flavors available: Strawberry, Mint, Vanilla.

3.1. Master production/purchasing program

Our work will be based on 1 outstanding product from the company ALICORP, this company has
a continuous production, we will raise a demand based on the existing purchase orders:

Product CASINO COOKIES

January 3000
February 3250

MES MES

Planning 3000 3250


added from SEM 1 SEM 2 SEM 3 SEM 4 SEM 1 SEM 2 SEM 3 SEM 4
CASINO COOKIES

MINT FLAVOR 400 500 500 300 350 450 400 400

600
STRAWBERRY FLAVOR 300 250 150 380 470 500 300

Description of the production process of Casino cookies

MEASUREMENT AND CASTING PROCESS


Take Bowl 2
Flour 10 Flour 17
Baking powder 12
Powdered chocolate 12
Sodium bicarbonate 12
Salt 12
Take and place the bowl 2 7
Butter 17
Sugar 17
Batdo 1 150
Egg 17
Batdo 2 100
Vanilla 12
Batdo 3 50
Solid 1 17
Batdo 4 100
Solids 2 17
Batdos 5 100
Filling 5
Fill manga 13
Fill tray 27
Leave in cart 3
Towards baking 5

Tiempo OP (min) 1162

Description of the process

The production process of cookies enriched with carob flour begins with the
receipt of raw materials and supplies, which consist of: wheat flour, sugar
refined, baking soda, vanilla essence, water, baking powder, salt, milk powder
lard and eggs. Subsequently, the dosing of the quantities will be carried out.
dry ingredients according to pre-established formula.

[Link]:

In the industrial blender, they will add the eggs, sugar, salt, water, shortening, vanilla essence and
soy lecithin. The mixing of all the ingredients is done for a period of 15 minutes.

[Link]

The obtained mixture is poured and the dry ingredients (milk powder, baking soda) will be added.
sodium, wheat flour), we will proceed to mix for a period of 20 minutes until obtaining
a homogeneous mass. The viscosity of the mixture will be verified. It is worth noting that it has been

considered 1% loss, due to the mass that remains on the walls of the mixer.

3. Molding

After mixing, the dough is taken to the rotary molder where a worker is in charge of
introduce the mixture into the hopper, this machine rolls the dough and cuts it giving it the shape
circular to the cookie. Then, a worker fills the trays that will go to the rotating oven, each
The tray contains 88 cookies, arranged in 8 columns and 11 rows with a space in between each.
one.

4. Baked

The trays are placed in the oven that has been preheated and will be
Baked for a period of 20 minutes at 180° C In this operation, the temperature must be monitored.

temperature and cooking time. An additional 5 minutes has been considered for the
preparation of the oven and the tray holder.

5. Cooled

Next, the cookies are taken to the tray-carrying cars, where the
cooling process for a period of 30 minutes. This operation is of great importance, as
that if not done properly, the cookies can break and not achieve hardness and
appropriate texture. Similarly, a visual inspection is conducted before proceeding to the area of
packaging.

6. Packaging In this area, the cookies are placed in the sealer that will first
packaged in bio-oriented polypropylene bags with 4
cookies per package, labeled indicating the production date, expiration date, and the batch of
production. It is important to keep in mind to avoid the softening of the cookies, they
They must be bagged immediately after cooling. Then, bagging is performed.

3.2 Structured Bill of Materials


The design of a BOM must be clear and concise. According to a hierarchical structure, the details are outlined.

precise materials for the manufacturing of a product, with the highest level showing the
finished product and at the lower levels the components and subcomponents.

Gross Material Requirements Plan

CASINO COOKIES - JANUARY (3000 PACKETS)


RAW MATERIAL QUANTITY LOT OF 3000 IN KILOS

A) Bicarbonate and 20 g. 60,000 g. 60 Kg.


aromas
B) Cocoa powder 10 g. 30,000 g. 30 Kg.
C) Salt 10 g. 30,000 g 30 Kg.
D) Sugar 20 g. 60,000 g. 60 Kg.
E) Wheat flour 20 g. 60,000 g. 60 Kg.
fortified
F) Vegetable fat 5 g. 15,000 grams. 15 Kg.
G) Colorants 10 gr. 30,000 gr. 30 Kg.
artificial
95 g x pasta 285 Kg.
of cookies

CASINO COOKIES

Time of
1 2 3 4
delivery
A Date required 400 1 week
Release date of the 400 600
order
B Date required 500 1 week
Fecha de liberación de la 100 400
order
C Date required 500 1 week
Release date of the 100 400
order
D Date required 300 1 week
Release date of the 300
order

4. SUPPLIER SELECTION

4.1. Define supplier alternatives


Alicorp guarantees the purchase of wheat from trained farmers through our Program
DurumWheat.Wecurentlyhave25,00wheatsuppliersinArequipa,Ancash,andCajamarca.
benefiting a total of 1,930 farming families (400 in coastal valleys and 1,530 in valleys
Andean highlands). The average production results are optimal at levels of: 7,500 kilos per
hectare in the Majes valley, 6,000 kilos per hectare in the Tambo valley, and 9,000 kilos per
hectare in the case of some farmers. It is worth noting that the national production of wheat
Durum represents 20% of the total wheat production in Peru, thus in 2010 Alicorp
he bought 261 tons of durum wheat from the farmers involved in the chain.
Main Suppliers
As the main suppliers of Alicorp, we have the farmers from the province of
Contumazá (Cajamarca) durum wheat, in addition to flour wheats, such as gavilán flour.
and centenary; it should be noted that the area began to cultivate durum wheat thanks to support from

Alicorp in a strategic alliance with Prisma, which has the financial backing of a fund.
employment of the Ministry of Labor and even to reduce imports of wheat of this type.

The client

Casino Cookie seeks to win over the general public, which is why it has a great
diversity of flavors and characteristics that adapt to different demands; in addition to
to have prices accessible to everyone.

The competition

Casino knows that the market is very competitive, which is why it requires a lot of work.
differentiating itself from the competition. It constantly studies its competitors and innovates its portfolio.

of Casino brand products.

There are policies and laws aimed at reducing the consumption of products with high content of
sugar, due to a health issue of the population. Casino is one of those products, so the
the effect of these laws can negatively impact the brand.

In addition, the cookie market demands constant innovation, which is also done to
satisfy the customer. To do this, Casino needs to stay at the forefront of technology.

Being Peru an active consumer of cookies, the growth of its population is an incentive.
positive for the brand, since it represents a larger audience to reach.

FACTORS THAT INFLUENCE THE CONSUMER

Cultural factors

Social class: Despite having an accessible price for everyone, the social class to which a
the individual belongs influences their purchasing decision, as they must analyze whether their income is

sufficient to cover the expense of consuming the product, knowing that one must acquire from
highest priority.
Subculture: In society, there exists a series of groups with different thoughts, the groups
environmentalists, for example. This group of people has an adversity against the
non-recyclable packaging, as it causes pollution. The Casino brand does not have this.
packaging time, so it is very likely that they will not seek to acquire the product.

Factores sociales

Family: Being the closest environment to the consumer, it has great power of influence. If the
becoming familiar with the trend of consuming the product, the individual will tend to imitate the action because of

habit or custom.

Role and Status: The type of activity you engage in in life also influences your decision.
especially in food issues. People like athletes, for example, who usually
following diets, could not be a potential customer for the Casino brand.

Personal factors

Lifestyle: If a person has a particular lifestyle, such as veganism, they usually do not
consume the Casino cookie, since its ingredients are not preferred by this group of
consumers.

Financial situation: The amount of money that the person possesses, and the proportion of spending that

The intention to buy the Casino cookie varies from person to person, as some perceive
higher income than others.

Psychological factors

Motivation: The main motivation of cookie consumers is the craving, those intense desires.
to consume something sweet that satisfies their hunger. Casinotene cookie has a
presentation call, inviting the customer to satisfy that feeling of appetite with the product.

Learning: If in a previous experience, the test he did with Casino cookies pleased him, it is
Very sure that the consumer will purchase it again, and even more frequently.
Pasa lo contrario si la experiencia no fue satsfactoria.

PURCHASE PROCESS

RECOGNITION OF THE NEED

It is the beginning of the buying process, and it arises when the individual feels the need to satisfy.
your craving or appetite. When the need arises, think of all the options you have for
satisfy it, and one of them is by consuming a cookie. However, for the consumer, it does not
Any cookie must have some specific characteristics.

INFORMATION SEARCH

The consumer starts to explore among all the options they have to choose from. They review the
ingredients, since the consumer may be allergic or have a dislike for certain
supplies; the flavors they present, since you can search based on your favorite flavor; if they are
sandwiches, flavored, whole grain, soda, dipped, etc., and of course, the brand. Think about
What would potential alternatives be.

EVALUATION OF ALTERNATIVES

Among the potential alternatives, the individual analyzes which one could best satisfy their
need. Their choice may be influenced by the previously mentioned factors, although
they have a certain level of influence. If the Casino cookie meets the requirements of the
The consumer, to satisfy their need, will make the decision to acquire it.

PURCHASE DECISION

At this stage, the consumer will want to purchase the product they chose, so they take action.
to go to the store or supermarket to buy it, to then consume it, and analyze whether it satisfied or not

your need according to your expectations.

POST-PURCHASE BEHAVIOR

Once the consumer tests the product, they will realize whether it satisfied their need or not.
From this experience, if the product pleased the user, and effectively satisfied their needs.
need, the purchase process will end with the repurchase of the cookie in the future. No
However, if the product did not manage to satisfy the customer, they will develop a detachment from the cookie.
and therefore, it is very possible that I will not purchase the product again in the future.

QUALITATIVE AND QUANTITATIVE STUDIES FOR ITS LAUNCH

Companies dedicated to cookie production tend to conduct market research.


before a new product launch, since adequate research of
plaza allows to analyze the various options that the market has and with it the realization of
a correct decision-making. In the execution of the market study there are two positions of
qualitative and quantitative research, each with a
different process. On the one hand, qualitative studies aim to provide detailed information.
the research topic, as it is ideal for the first steps of the project.
In addition, the results obtained are exploratory data, meaning that they are based on
surveys, secondary data, and other qualitative research. Therefore, the company
Alicorp, producer of the Casino cookie, is conducting this study, as when carrying out such
surveys of both consumers and experts in the subject obtain a
major result regarding consumer preference and choice at the moment of satisfaction
your craving or appetite. It also allows for constant contact with the consumer, and with
I want to access continuous information about the new trends that clients expect.
obtain from the product. On the other hand, quantitative investigations have the purpose of
gather quantifiable information, to then analyze it statistically, and from that
to obtain a more concise overview of what is expected to be investigated. In addition, the results that are

they are conclusive, descriptive, and causal, that is, they are demonstrated in groups of
approaches, documents, files, and surveys. The company carries out this study to gather from
a correct source of information. With all that information, the company has an adequate
idea about the sector in which you are investing and how to do it.

The management of purchasing and procurement is a very important function in the chain of
supply, as an organization can increase its profit margin if it carries out
an optimal supply policy. Therefore, the success of an organization depends
directly to an excellent management of its purchases. The most common problems
with whom the person in charge of purchasing management can be found are:

That a specific negotiation system does not exist.

That a careful selection of suppliers is not carried out.

That these suppliers are not valued.

Lack of knowledge about the products being purchased.

Not knowing the sales forecasts, and not having control over production planning.

TOFU - Techniques for motivation and team management

Given this, proper management of purchasing and supply will allow for an increase in the
benefits of the company since they are amounts that are quite significant for the
organization, and in turn conditions the quality of the final product, because through this management
the necessary raw materials will be obtained for the production process to take place
efficiently.

Once the existence of a purchasing department in a company is justified and its


importance, we briefly analyze the functions of purchasing management that are carried out
cable

Keep a record of the data and present management reports.

Ensure the continuous flow of production.

Increase the turnover of assets.

Minimize costs.

Develop alternative sources of supplies.

Train and develop the staff.

Integrate with other departments of the company.

Negotiate and maintain good relationships with suppliers.

And it is in this last function where we want to place special emphasis, due to its importance.
what processes.

The success of procurement management is closely linked to good results in the


negotiation with suppliers and this can be the difference between success and failure of the
organization.

If there is one thing that identifies the time we are living in, it is the increasingly greater communication.

and interconnection on a global scale, which is why today the negotiation with suppliers is
becomes much more demanding and meticulous, as organizations can target any
company in the world to meet its needs and thus supply itself in a way
quick and efficient.
For this reason, it becomes more necessary to follow a foundation, that is, some fundamentals in the

negotiation with suppliers, so that, even though the company may turn to another
provider from anywhere in the world, if you are not satisfied with yours, do not repeat the
events that have led him to this dissatisfaction.

Negotiation with suppliers

The first thing to do, before rushing to choose a supplier and negotiate purchases
from the organization, is to analyze the purchasing management and the negotiation with suppliers that has been

has been carried out over the years. Not because it has always been done in a certain way
way, you have to be well, especially nowadays and with new technologies, the way of
supplying a company is very different from the way it was done a few years ago. How
do it?

Reformulate what the true need is. It is necessary to identify the need of the company today.
In day, if it is really being purchased what the organization needs to carry out its
production process or its growth strategy. Yes, the technical specifications are the
appropriate, or if it is effective for the supplier to deliver within a term of 'x' days. All these
questions must be answered and analyzed again to realize whether what has always been
what has been done is what is productive for the company.

Continuously keep all suppliers in mind. That a purchasing manager is


Being happy with a certain supplier does not mean they are the best or the only one. With the
new technologies and advances in logistics, many are left behind and their clients do not realize
count. That's why it's important to stay informed about what other providers can offer and about
this way enhance the negotiation with those that already exist.

The person in charge of negotiating with suppliers in the organization needs to establish the
specifications that are needed and what the conditions will be to close the deal. Thus
Well, this person in charge has to determine very exhaustively issues such as the
design restrictions or business objectives among others. Additionally, it must also
list the conditions and requirements that are demanded of the supplier so that they can perform
an offer in line with the company's demands.

When the company has closed the deadline for the submission of bids from suppliers,
this must be analyzed one by one to first see which ones meet the conditions and
Product or service specifications required. Afterwards, you will have to gather all the information.
to distinguish which provider offers something that stands out among the others. In the end, it will have

to contact those suppliers who have passed the first selection and start with
a new negotiation strategy.

It is essential for the person in charge of purchasing to see the supplier as an ally and not as a

enemy, since the importance that it has on the business is more or less equal to
important as that of any department in the company. It must be taken into account that
they depend on the company's supply for it to work, from the simplest pencil,
even the most necessary machinery to manufacture the product.

The first thing to consider when outlining negotiation strategies with


The suppliers need to have a clear understanding of what the organization truly needs, as it can
there are times when you offer the company something that could help, but it is not
essential to function. Therefore, it is important to have clear needs and priorities.
of purchase. The same supplier can offer you different products and services, but it is
It is important that he/she is instructed on what is currently desired.

Even so, although it is clear that what one wants to buy is a specific product, it does not
we must set aside possible offers, and it is necessary to analyze them in case in the future
new needs arise.

In addition, to be a good purchasing manager and serve as a guide to the supplier and
organizing oneself, a prototype should be created for the delivery of the quotation that will guide you

to the supplier in what the company wants and will serve to make them realize the importance of
his work with the organization.

4.2. Define the events and their probabilities of occurrence

SUPPLYING:

The selection is based on the ABC analysis method, commonly used for classification.
suppliers based on the purchase amount. "A" refers to the suppliers they buy from.
greater amounts; 'B' to the suppliers from whom they purchase for amounts lower than those of
segment "A", and finally, "C" to those who purchase for amounts less than those of
"B". At Alicorp, purchases are made indiscriminately at the local or international level.
depending on the fulfillment of indicators such as the lowest price, best quality,
timely supply, production capacity, payment term, technical service and
development. However, there are materials that are produced only abroad. To the
local suppliers, that is, companies located and registered in Peru, are requested to
quotations for each material purchased, considering the mentioned indicators.
Depending on the purchase values, a minimum of two quotes is required. As the
Alicorp's main suppliers are the farmers from the province of Contumazá.
Cajamarca durum wheat, in addition to flour wheat, gavilán flour and centennial; it is important to note

that the area started cultivating durum wheat thanks to the support of Alicorp in a strategic alliance
with Prisma, which has the financial backing of the Employment Fund of the Ministry of Labor and
even to reduce wheat imports.

2) PRODUCTION:

For better understanding, we will provide examples of the production of some products.
Alicorp: Cookie manufacturing The cookie production begins with the receipt of the
raw materials; then those ingredients are prepared and selected for the mixture. The
The mixture is prepared according to each recipe, which are stored digitally.
in the memory of a computer. Different mixtures and treatments result in different
types of dough which correspond to 3 different types of cookies: rolled,
deformed and obstructed. Lamination and rotucutting are used in the so-called elastic masses.
or developed, as is the case with Soda and Divas cookies, rotational molding is used in
short doughs like in Casino and Tentación. The blocked one is used in soft doughs like
Marquesitas. The baking of the cookies is carried out under strict temperature control and
humidity, when the cookies come out of the oven they are cooled on the conveyor belts. Alicorp
produce a wide variety of cookies including sandwich cookies, that is, two
cookies that contain a layer of cream. The coated cookies are those covered with
chocolate or another flavored coating. After being covered, the dipped cookies go through a
cooling tunnel where the crystallization of the coating begins. The cookies coming from
from the different lines are fed into the packaging machine which is conditioned
for various packaging formats, the packaging machine codes the packs indicating their
expiration date, then the packages are enclosed in secondary containers and stacked.
Each phase of the process is constantly supervised by quality inspectors who
certify the conformity of quality attributes at each stage.
Sauce production: The process of making mayonnaise begins with the reception of
raw materials subjected to rigorous quality control, expiration, and preservation;
Raw materials are stored in suitable environments before their use and weighed.
to meet the specific quantities in its formulation; the ingredients are mixed
through constant stirring in order to achieve a homogeneous mixture; then this mixture is
sucked into the formulation tank where the oil and other spices are incorporated; from the tank
the formulation mixture is passed through a mill via a pump and deposited in
to the storage tank; before being sent for packaging, this mixture is examined in
its appearance, viscosity, temperature, color, smell, and taste. From the storage tank the
Mayonnaise is sent to the packaging machines using special pumps that
they protect their texture; packaging in flexible material or glass protects the product from
oxygen; allowing for proper preservation and presentation; these containers are then
fitted in order to protect them during their storage and transport; the boxes are sealed and
labeled to finally be transported to the distribution center where they will rest
time needed to achieve product stability.

PRODUCTOS:

a) STORAGE:

PRODUCT WAREHOUSES. LIMA: Noodle shop Lima: Av. Argentina 4793 Carmen de la Legua
Reynoso -

CALLAO: -Central Distribution Center: Av. Jorge Chavez No. 902 Carmen de la Legua- Callao -
Molino Callao: Jr. Huascar Nª 143- Callao -Ransa – Charlie: Av. Nestor Gambeta km 3.6 – Callao -
Fideeria Alliance: Jr. Republic of Ecuador S/N Block 7 Lima downtown The warehouses of Alicorp in
provinces are found in: Piura, Chiclayo, Trujillo, Arequipa, Cuzco and in the other cities
where there are no warehouses, Cross Docking is used as efficiency in distribution.
SUPPLY WAREHOUSES:

Responsible for managing the supply of inputs and packaging with suppliers.
spare parts for the production plants. To manage the warehouses through control of
incoming and outgoing materials, inventory taking, and the liquidation of obsolete materials.
All this through efficient inventory level control and management and applying techniques.
of Supply Chain Management
b) DISTRIBUTION AND TRANSPORT: Responsible for the design and management of the model of

physical distribution of products to customers at a national level. It includes from the reception of

products, storage, order preparation, management and


transportation programming, up to the control of order delivery to customers. For
It has Finished Products Warehouses, Distribution Centers,
Logistics platforms for re-shipping and an external transport fleet. From its
Alicorp's creation has outsourced transportation, and currently has more than 200.
companies that provide services at a national level, which offer the following
servicios: – Reparto a clientes. – Traslado a sucursales de provincias. - Traslado entre los
productive centers of Lima

In 2008, Alicorp began a process to optimize the management of its transportation providers.
establishing demanding service standards according to the quality and efficiency policy.
The following aspects are considered:
Minimum age. The units must be new or have a maximum of 15 years.

Formalization. The staff of the suppliers must be listed on the payroll according to the
current labor regulations and the company must demonstrate administrative and financial strength.
Condition. The units must be in perfect mechanical condition and conservation.
Regulatory Compliance. The units must comply with the regulations and standards of road circulation.
certificate of technical and operational review, emissions, etc. Safety. The suppliers
they must comply with the provisions of DS-009 and must implement location systems
by satellite (GPS). Customer service. Must comply with the standards required by
Alicorp.

Alicorp groups its transport suppliers according to the following relationship:

Local Distribution Fleet (LDF). It refers to the units that carry out the delivery process.
productos a clientes dentro de una ciudad específica. Estos proveedores mantenen un número
determined units exclusively with Alicorp and use uniforms under a model
standard that identifies them as authorized suppliers. In 2008, the process began.
for the renewal of this fleet which, by the end of 2010, exceeded 70 renewed units. Fleet of
Long Distance or Rural (FLD). They are providers dedicated to delivering products to customers.
in areas far from the source warehouse. They are generally specialized suppliers
province or transport area to take advantage of your specific knowledge of the area and the
return load supplement. Internal Transfer Fleet (IFT). They are dedicated suppliers.
to the supply between warehouses across the country. These fleets specialize in routes or
specific areas looking for return load complement. Materias Transfer Fleet
Primals (FTMP). They are specialized units in the handling of raw materials, whether in the
discharge ports of imports, in specialized warehouses or in centers of
collection.

c) VENTAS:

Responsible for optimizing sales management in each region by efficiently executing the
proposed strategies. Its main functions are to establish the management guidelines of
Sales that allow achieving the objectives of volume, collection, distribution, and merchandising.
for each of the brands of Alicorp.

4.3. Development of the decision tree


The company Alicorp, despite having undergone an infinite number of changes in terms of ownership,
groups, etc., has been in the market since 1928, when it was dedicated to
production of oil, soaps, refinery fats, and a cotton gin.

Currently, the company has raised its level of production consolidating its leadership in
various categories The Casino cookie is rectangular with cream filling. Currently,
it has seven different flavors.

According to Ipsos Apoyos research, Casinotene cookie has a share in the


16% market, preferred mainly among consumers in socioeconomic levels B, C
and D. Since 2011, it has experienced slight growth, and in 2012 and 2013 it maintained the
same participation, perhaps this is due to the fact that every certain time it reinvents itself in flavors, in
SATISFACTORY
addition, to its flavors

Supplier A P-1
Unsatisfactory
PARTNERS Q
SATISFACTORY
STRATEGIC OF
ALICORP Supplier B Q-1

UNSATISFACTORY

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