Upland Marketing Foundation, Inc. (UMFI)

Profit increase for trading company in Fair Trade products

 

In a short space of time, John van de Winkel, working together with UMFI, a trading company in Fair Trade products, realises a number of improvements, which increase the profitability of the company. The cancellation of a superfluous investment means considerable savings in costs.

 

About UMFI

UMFI is split up into an NGO and a trading company. The trading company is one of SharePeople's partners. This company looks after the marketing and supply of products from small farmers and communities (for example, organic sugar and rice) to supermarkets and other buyers.

 

Business case

UMFI asks SharePeople to help them consider their logistic processes. In addition, UMFI is looking for a more efficient way to convert large packaging into smaller units because smaller packaging is much more convenient for sale in supermarkets.

 

 

Results

 

Analysis

John discovers that UMFI must supply all the supermarkets in Manila himself, as there is no central depot. Even though every supermarket employs a stock manager, the UMFI representatives themselves still have to make sure that their products are neatly displayed on their shelves. To put it briefly, an inefficient system, which has been employed throughout the entire Philippine supermarket sector until fairly recently. Fortunately, the largest supermarket chain in the Philippines has announced its plans to work with a central depot.

 

Advice

• UMFI and John have set ambitious targets to lower the costs of the supply chain, such as the transition from manual packaging to a semi-mechanised packaging process.  
• Due to the changes announced in the Philippine supermarket sector, John advises against the proposed expansion of the UMFI fleet. This means a substantial saving in the costs for UMFI.

Impact on the overseas partner

The validation that our earlier initiation was similar to Mr. van Winkel's recommendation boosted the morale and confidence of the management staff as expected. We had chosen the right direction.

 

Impact on the European professional

The programme has made John less hasty in his thinking and acting, he has seen that patience also is a good strategy. He will utilise these skills in his company, Vandewinkel Consultancy & Interim Management. Rene Guarin learned to take the perspective of business income to be generated as opposed to savings from operations as the major basis for decision-making.

 

‘Given the short period of time available, the match between the experts background and the organisation results in immediate productive discussions, fewer introductions of the people themselves and more introductions of ideas and possible solutions.' Rene Guarin, Executive Director UMFI

 

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Related business cases

• Advocate of Philippine Fair Trade Inc. (APFTI), 2008, Expert Program, Philippines
• PhilNet-RDI, 2008, Expert Program, Philippines