How to managed logistics platforms overseas for a low cost

business

Abril, 2018
 TABLE OF CONTENTS

Summary 3

The challenge 3

State of Art 3

Business Models 6
SWOT 6

CANVAS Model 6
Key Partners 6
Key Activities 7
Key Resources 8
Value Proposition 8
Customer Segments 9
Customer Relationship 9
Channels 10
Cost Structure 11
Revenue Streams 11

Tea importation model 12

Tea Tariff code 12
Tea Suppliers 12
Tea Transportation 12
Tea Other costs 12

Sustainability Nowadays 12
Sustainability in our low cost business 12

Conclusions 12

References 12
 1. Summary
The present project is done to understand and analyse how is the
management and the development of logistics platforms overseas for low cost
businesses in Colombia. It was made based on the business model of Tostao’
Cafe y Pan. In first place we understand what is and how does it work a low
cost model. Then, through a Canvas Model, we develop easy steps to follow.
Firstly, it is identify the key partners, key activities and key resources. Second,
the value proposition is analyze along with the consumer segment, the
customer relationship and the distribution channels. At last, it is define the cost
structure and the revenue streams. According to the economy in Colombia in
2018 and its consumer behavior, it is highly recommended to follow Tostao’
Café y Pan low cost model since is a very robust, sustainable and functional
way to work in the current market.

2. The challenge
Understand and analyse how is the management and the development
of logistics platforms overseas for low cost businesses. In general terms, in
this paper the project proposed is how to implement a business model in
Colombia for low cost business taking into account that there are companies
which successfully applied this locally. This is centered in bakery business
such as Tostao’ Café y Pan.

3. State of Art
To begin with, the knowledge already established about low-cost
businesses will be analyzed. Firstly, David Blanchard, in his article ​"The cost
of doing low-cost business"(​ 2007), establish that the chains that create value
and in the end the final product or service is very cheap, they will not last
forever, that maybe they will last a few years but they will not be sustainable in
the long term. This, given that, for the price to be so cheap, some part of the
chain had to pay the price, with very low wages, with scams, with prices that
are not fair, or one country taking advantage of another.
On the other hand, the article ​"Innovating low-cost business models"
(Kachaner, Lindgardt & Michael, 2011) has a position that supports more low
cost businesses, saying they agree very much with new models of low-cost
businesses that ​serve a large segment of customers with limited financial
means ​(Kachaner, Lindgardt & Michael, 2011). They also defend it as a new
value proposition created for existing and new customers, supported by an
innovative operating model, offering a limited range of products without
compromising on quality is a key element for many of this type of business
models.
We consider that it is very important to have clear that low cost is not
low earnings, low quality, cheap imitation, or unbranded products, it can be
highly profitable, usually involve a defined variety of products, it is a legitimate
innovation and it is generally promoted by influential brands. Finally, the target
segment of a low cost business, must be concentrate on a define number of
price sensitive people, it should have clear borders, and understand their
priorities.
Particularly, in the case of the airline industry, it has been possible to
understand better low cost businesses. The results of the article “​The evolving
low-cost business model: Network implications of fare bundling and
connecting flights in Europe”​ (Fageda, Suau-Sanchez & Mason, 2015), show
that there are suggestions of a delay in the natural growth of low-cost services
due to lower frequencies and rise in route distances, which is forcing
companies to adopt other business strategies for growth.
This shows, why it is important to be very careful with the cuts or
reduction in costs that are made, and to take into account the primary
expectations of the clients, because if it is not met, they will surely prefer to
pay more, for a service that meets their needs. To complement the example of
this industry, and understand how customers can be retained in low cost
businesses, there will be exposed an article that talks about the key concepts
to obtain loyalty in this business model.
In the article “Key determinants of passenger loyalty in the low-cost
airline business”(Akamavi, Mohamed, Pellmann & Xu, 2015), it is defended
the importance that the customer relationship management (CRM) has, it has
become a crucial concern for low-cost airlines, due to the the extreme rivalry
in the airline sector. Key concepts that are important for obtain passenger
loyalty, is service employee self-efficacy, price, service recovery, passenger
trust and satisfaction, and this, because they defend that people are not going
to be loyal customers for the price, but for the relationship with the brand​.
When it comes to define the meaning of a logistic platform, it is is
important to take into account what the EUROPLATFORMS (European
Association of Freight Villages) have to say about that. They define this term
as an special area where there must be all of the services and infrastructure
necessaries for co-modal transportation and added value services, where the
different agents coordinate their activities to benefit the competitiveness of the
products making use of the infrastructure and the environment protection in
the transport sector. Some of their key elements usually are: access control,
service area, business center, transport and logistics warehouse, intermodal
warehouse and intermodal terminal.
According to what Erick Leal and Gabriel Pérez Salas said their article
“Logistic platforms: conceptual elements and the role of the public sector”
(2009), three different types of logistic platforms can be distinguished. The
Unimodal distribution centres are infraestructures related with storage facilities
and is primarily concerned with road transport. Logistic areas are related more
with integrated operations like stock consolidation, local and redirectioning
activities. This one is concerned with air or maritime freight centres. The last
one are the multimodal logistic platforms, which are logistic nodes connecting
different modes of transport. This infrastructure are run by several operators
and are mostly focused on the added value services contrary to the two
previous types of platforms.
There are many low cost business in colombia which are doing great in
terms of profitability and grow like Tostao, Delis, Ara and Tiendas D1.
However, they could perform better, as the article “Operadores y plataformas
logísticas” (Javier Arturo Orjuela Castro, Óscar Fernando Castro Ocampo,
Edwin Andres Suspes Bulla, 2005) points out an specific case in Spain, where
this country was far away in terms of logistics from many other countries in
Europe. They decided to create many logistic platforms, in strategic places in
the country, and that has been a huge help for them in terms of operations.
The article also says that there has been an increasing amount of specialised
companies offering logistic services in Colombia, which is positive for their
perform in their operations. However, there are not properly logistic platforms
owned by any company, which would be very helpful for the low business
companies that are huge and still growing rapidly, and their competitive
advantage in the market are their low prices of their products.
For instance, ​Ara supermarkets achieved that their suppliers put the
procurement orders in palettes, not in boxes or units. So, the company arrived
to Colombia and maintains a competitive advantage over the pioneer of "hard
discount" D1. However, the suppliers had to adapt fast to the new packaging
and give away the traditional layettes, which have resulted in mistakes along
some logistic areas. ​(​América Retail, 2013). Additionally, Tostao imports their
bread products ultra frozen from Germany and Spain, and then they bake
them in the oven. That is why it is always fresh and hot.The examples above,
are inspired in Biedronka, the convenience stores of Jeronimo Martins in
Poland.
Furthermore, Biedronka stores followed the customer trends in Poland,
which indicated that customers had a busy lifestyle and the new family model,
so this led to the company’s expansion to new markets.What is more,
proximity supermarkets and discounters, due to their suitable size and
logistics have big potential in regional development, especially penetrating
smaller cities, inhabitants of which are increasingly expecting same shopping
experience as in bigger cities. (Berger, 2016) Also, they are able to penetrate
small cities, are region potential and can have very low prices, which the
competition could not equal , due to efficient logistics, large scale per SKU and
Private Labels. Therefore, this application of the supply chain in this type of
business model worked as an example for the development of similar
businesses in latin america.
In consequence, we consider that the logistic platforms are a very
useful tool for companies because it gives them the opportunity to have a
better control and perform of their supply chain, as every member of the
company in charge of anything related with the operations of the company
should be in the same place of work, which is equipped with all the
requirements for a well coordination of activities. In the case of low cost
business, the logistic platforms could be very helpful as these companies tend
to be big and growing very fast, so even if the company was not that huge, the
Unimodal distribution center would work perfectly. Added to the fact that the
companies could focus their supply chain towards cost efficiency, which
enables to them have larger margins and their customer could have easily
have access to their products.

4. Business Models
4.1. SWOT

Strengths Weaknesses
- Huge demand - Hard to manage it properly
- Low marketing investing - Low profit per unit

Opportunities
- Companies can grow very
fastly
- Trends in buying products
in this type of business
Threats
- They mainly depend on
the prices, so the
competence can emulate
the prices

5. CANVAS Model
To explain how it is going to be implemented, it is going to be use the
Canvas Business Model. The reason is that it allow a very simple way to
understand the key steps to take into account, it gives a very systemic and
integral approach. It also is oriented to easy solutions encouraging group
work. In here we are going to see an strategic analysis of the market, the
competitors, clients, suppliers, structures and processes that Tostao’ Café y
Pan develops. This can be used as a starting point for other Colombian
business that want to follow.

5.1. Key Partners

The principal idea of Tostao’ is a model that wants to democratize the
consumption of their products. They took elements from some of the world's
leading companies in this segment, such as Pret a Manger or Costa Coffee.
Like that, the companies premise was defined: to bring these products to the
pocket of any Colombian guaranteeing high quality.
In search of a high quality and low cost model, a structure is required. A
company like these needs partners experts in the bakery management, with
an expert partner in the coffee field. In the case of Tostao’, the company Café
Kumanday is part of the group as a supplier of high quality coffee, which
allows users of Tostao stores to obtain soft drinks with quality from an
exportation. In addition to providing coffee for the stores of this chain, the
company began to develop a special and green coffee export business that
has already shipped to the US, Portugal, the Netherlands and Taiwan. It is
also the local supplier of the Tostao 'coffee brand, which is sold at the Justo &
Bueno discount stores. (Revista Dinero, 2018)
Apart from that, they need partners in technology experts in
deep-freezing technology that allows all bakery products to be imported from
Europe and baked daily at each point of Tostao 'Café y Pan. Tostao’ uses
Colombian coffee, but all that includes bread is imported mostly from Spain
and Germany. (Revista Dinero, 2018)
For the process of importation of the goods to Colombia, it is needed a
transportation system, a bulky agent, a deposit or free tax zone and there
should be a port or airport.
5.2. Key Activities
In first place, in terms of the administration, it is needed to create a very
light structure. Tostao’ do not have area supervisors or commercial and
marketing areas. Each store generates between 3 and 5 jobs, so there is a
high level of self-management to reduce costs. The organizational structure in
Colombia has to be simple so the low cost model can become viable.
In second place, the payment method should be defined. In Tostao’ model, it
is important to sell in cash rather than other payment methods such as credit
card. The premises are small. They do not have much space indoors so most
of the food they sell is to take back home. Only 10 percent of the premises
have chairs or Wi-Fi. In addition, they avoid paying expensive leases to be
able to always offer low prices.

Additionally, they have a deep-freezing technology that has allowed them to

import bread from Europe in order to bake it in each place, so that "it always
smells like bread". As we are talking about importing bread to Colombia, there
are some documents and processes that every company have to take into
account. A complete route map is done by El banco de la república1 It is
important that the company or party read about the complete process in the
recommended web page or in the web page of la DIAN so every step is
accomplished without having legal troubles.. The process of importation goes
by steps:
1. Entry of goods into the national customs territory
2. Storaging
3. Nationalization of the goods
There are some customs obligations that include:
1. Presenting the importation declaration
2. Pay customs taxes
3. payment of penalties if incurred
4. Obtain and keep supporting documents of the operation
5. Respond to requests for information
At last, it is necessary to guarantee that both raw materials and quality
processes meet their own standards.

5.3. Key Resources

Despite being in more than 200 stores in Colombia with different types
of sizes (most of them are very small), Tostao does not own any of them.
However, they do have their own distribution center located in Bogotá, and a
toaster located in Manizales.
Although most of their products are either imported or supplied by other
companies, Tostao is producing its own cafe, which is not only being sold in
their own stores but in different ones like Justo Y Bueno, and is even
exported to some countries like Portugal, Ireland, Taiwan and EE.UU.

1
The document can be found in the following link:
http://www.banrep.gov.co/economia/sal_deu_x/pcebracs_1.pdf
Regarding to the human resources of the company, all the employees that
work for Tostao are hired directly with a "social salary", and only 5% of the
employees of the company are administrative, that means most of the
employees are the ones in charge of managing the stores. These employees
are of all ages, and before started working they need to attend to a training in
a school of culture and service. This seeks the store to be self-managed
through the employees in charge. Therefore, they must collaborate and
support each other to achieve the success of the store, as there is no boss or
supervisor in there.
The financial aspect is vital since they are always looking to reduce their costs
in all possible aspects, so that the product offered to consumers is as cheap
as possible. Every financial decisions are made as quickly as possible, and
they manage to do it through a network (which is almost never done in person
to speed up the decision), which in this case generally involves the
accountant, treasurer, and of course the General Manager. (portafolio, 2017)

5.4. Value Proposition

The benefits of a service, as a coffee bakery, is that it will be a low cost
product, which implicates for the customer to save money, to have a fair price,
and, at the same time quality. It will eliminates the frustrations of high prices,
will offer quality products at prices that are lower than the competition, and
consumers doesn’t have to compromise on price or quality, they can get both.
The principal target market, will be people who need low-cost, on-demand
bakery services, and who are cost-conscious shoppers who expect quality.
So, people who access this service, is going to be able to feel in a certain way,
in which they will get the feeling of acquiring a typical high-price cafeteria
service, where the designs of the products and its other elements are
beautiful. In this place, they will feel affirmed at a social level , and in reality,
they are not paying the full price of what they would pay in other companies.
On the other hand, this service has a special way of working, and that is why,
it must have many different places where it can be found, the goal is not to
make each location the best, but to increase the amount of stores there are by
sector. In this way, another additional value is the physical accessibility, taking
into account there are many facilities.

5.5. Customer Segments

This business model will be a business to consumers, in Colombia, for
men and women, from low to middle income levels, from all ages, different
cultures and religions. Normally, they are people who do not tend to make a
very large purchase, but small and continuous. They are people that have
habits, either to buy certain food on a daily basis, or to have meetings with
friends or family in the same place, since they already know the menu, it is
easy to access, and for the security that they will find the same products, they
are repetitive people.
With the above, there will be two types of people, those who buy daily and
those who go 1 or 2 times a week, but go with company normally. And in this
case, it is important to take care of both segments, given that the first one will
be investing daily and it is a safe sale if service and quality are maintained. On
the other hand, the other segment is ideal to increase the visibility and
awareness of the brand, since they will talk about it with other people, they will
invite them and introduce many others to the company. The consumers, will
be people who prefer low-cost bakery services, and are very cost-conscious
shoppers who expect quality on what they buy.

5.6. Customer Relationship

Businesses such as Tostao Café & Pan, have had an increasing
percentage of market share through out the last months. In the case of this
company, according to a survey done by BandStrat, Tostao exceeded
Starbucks the brand awareness results in just 20 months of operations.
Additionally, it has almost the same results as the leaders of the coffee food
service in the categories of trust and quality (22%), such as Juan Valdez
(30%). Therefore, if this categories mentioned before are related with price,
Tostao is developing a very effective strategy with which their consumers
perceive almost a completely fair price for what they are paying for.
Additionally, since they have a philosophy of not offering their services to a
particular social class or placing their shops only at special locations, this low
cost based model system has been highly successful in countries such as
Colombia. Due to the fact that there is an economic recession, elasticity of
demand becomes more susceptible to price. Therefore, low prices become
really important for the development of a brand in times when, most of the
population is not able to pay high prices, with a high value perception, such as
Tostao. ( encuesta)
On the other hand, the fact that Tostao sells products “to go” ,
increases its innovation and goes parallel to the consumers needs and wants
satisfying them. Added to the fact that their shops can be found at any place of
the city, they enable any kind of people to find good quality and low priced
coffee, wherever they want. With this, the company is implementing the trend
of small formats and profitability. All the above can be identified with the
increase of RSP from 74 points in 2016 to 100 points in 2018 according to
Euromonitor.

5.7. Channels
Tostao have three types of channels, and they choose it depending of
the product they want. For most of the products the the channel begins in the
different suppliers the have, then the products go their main distribution center
located in Bogota, and finally the product is transported to every Tostao Store
according to the demand established. The bread has a similar distributions
channel, but the difference is that the channel begins with a supplier in
Europe, so then it goes to a broker in charge of the transportation to
Colombia, in order to get the products to the distribution center, and then the
Tostao store.
Regarding to the coffee, it is slightly different, as this product needs another
process to be consumed. That is why it begins with the supplier, and then it
goes to the toaster the company has in Manizales. When the product is ready,
it goes like the normal products to the distributions center, and then the
product can go to three different ways, which are to the usual Tostao stores, to
the retailer Justo Y Bueno, and to a broker, which is going to transport the
coffee out of the country (Portugal, Ireland, Taiwan and EE.UU.)
The company is always aiming to have all the processes integrated, so they
try to never outsource any activity they need to do. Even when it comes to
activities related with transportation, they want to do it themselves in order to
have a better control of all their supply chain.
On the other hand, they focus on small local shops that are strategically
located around the city, where there is a huge flow of people. So, for example
the consumer that bought a coffee in the morning can buy a coffee at night at
the other side of the city.
5.8. Cost Structure
When it comes to creating partnerships, they are always open to make
alliances with other companies as long as it is convenient for them. They see
difficult to work with companies like Alpina as they have a huge amount of
quality products, but the cost of them can be elevated in comparison with the
average products in the store, and they are always looking for offering quality
and very cheap products.
The human and the physical resources are the most expensive ones as they
usually put their stores (which are more than 200) in key points in the city, so
the rent is going to be expensive. Also, they have to adapt every store in order
to have the requirements they are looking for. In some cases the
arrangements are not that hard, but in other ones they are, so the costs are
going to increase. Regarding to the human resources, they are willing to pay a
higher salary than the minimum in Colombia and the quantity of employees in
the company is huge as all of them are hired directly. One of the advantage in
this aspect is that they are able to minimize the quantity of their administrative
employees in order to decrease this cost. But still they still have a huge
amount of salary they have to pay, as in 2016 it was approximately COP
3’800.000.000.
The importation of bred from countries in Europe like Spain and Germany
could be their most expensive activity because of the long distance and the
high volume they import, which is a 12% of their total of products. However,
this importations and the implementation of the deep-freezing technology is
the one that allow Tostao to sell its bread with a high quality and at a very low
price, so it is very convenient.
This types of businesses are cost driven, mainly because the aim of this
company is to transfer all of the activities into a good product with the lowest
cost possible.

5.9. Revenue Streams

These are customers who are willing to pay very little for the products,
which is why they will never pay more than $3500 COP for a cup of coffee
and never more than $3000 COP for some a special bread, but they will buy
with a reasonable price for having lower rates than all the competitors on the
market. They will pay in cash, and maybe in the future, they could be analyze
other options, but at the beginning it must be in this way, to benefit the
company.
And on the other hand, a very efficient way to generate profitability is through
the sale of brand products in the store, since they will want to be in these
places because of the high exposure they have to people, and more, as they
are stores that have a very high turnover .So, if a brand wants to sell in the
store, it will have to meet requirements such as, give an economic price and
part of the profits go to the store.

6. Tea importation model

With the purpose of making the low cost model easier to understand,
the model is going to focus in only one product: tea. This product is chosen
since there is a big opportunity considering the growth of the tea market in
colombia, and the growth of healthier soft drinks. Experts agree that the tea
market show an steady growth for five years, with rates between 20%-25%
annually. Nielsen investigations also showed up that the tea consumption at a
national level increased in a 60% (Jaramillo, 2010).
According to euromonitor, there is an increasing concern related to the
consumption of sugary beverages which has made the consumers to move
towards alternatives like bottle water and RTD tea, and is expected that the
companies will increase the offer of low-calorie products to meet the new
preferences.
The average colombian consumer takes 34.8 gr of tea per year. Then the
annual demand is 518,066,709gr of tea knowing that a 30% of the population
drinks tea.

6.1. Tea Tariff code & Exporters and Importers of Tea

The Tea Tariff code is 090902, and the following tables, show the main
exporters and importers of tea in the world.

Table 1. Exporters of tea

As it is show in Table 1., China, Sri Lanka, Kenya, India and United Arab
Emirates, are the 5 main exporters.

Table 2. Importers of Tea

And as it is show in Table 2. the main importers in the world are Pakistan,
Russian Federation, USA, United Kingdom, Egypt and Iran.
We will focus mainly on exporters, since these ones could become our
potential suppliers.

6.2. Tea Suppliers of Colombia

For making an analysis of the actual situation in Colombia, we started by
understanding which are the main importers of tea in Colombia, and the Table
3, gives a list of them.
Table 3. Main importers of tea in Colombia

Finally, after analyzing both informations, the largest tea exporters, as well as
the countries to which Colombia imports the most, there was found China and
India in common, so it was decided that it could be exported from both
countries.

6.3. Tea Importing Strategy

For the transportation of the tea, the standard containers will be used,
as it is predominantly transported. Since the tea must not be in contact with
any other substance, specially water from rain or sea, a below deck stowage
is required. Additionally, due to the packaging, it could be send as general
cargo and FCL cargo, meaning that we could be the only owner of the
shipment.
As international terms of trade, for each sale, it is important to determine who
is responsible for the pre carriage or the domestic transportation at the
exporting country, the main carriage or the international transportation, the on
carriage or the domestic transportation on the importation country, the risks
involved and the customs on each countries.
According to the type of shipment, containerized cargo, the appropriate
incoterms that correspond are Free Carrier (FCA), Delivered At Terminal
(DAT) and Delivered At Place (DAP). Additionally, given that the main carriage
is multimodal (FCL), the best incoterms are Free Carrier (FCA) and Delivered
At Terminal (DAT).
FCA can be used for any type of goods, in any transportation modality. In
here, the exporter and the importer can agree on the exporter premises and
the carrier premises. The first is when the exporter loads all the goods a its
place of business on a truck provided by the importer. The exporter must
package the goods for the international voyage, provide the importer, us in this
case, with the documents necessary to clear customs in the importing country
(Colombia), and deliver the goods on the truck at its own place of business.
For us, the importers, we must do everything else.
FCA.Xiangang Port, China,Incoterms 2010.
FCA.Visakhapatnam Port, India ,Incoterms 2010.
Cost China:
Cost India:

In second place we talk of DAT Delivered at Terminal. Is is for containerized

cargo delivered to a port. The exporter and the importer can agree on a
terminal located either in the exporting country, in the importing country, or in
a country through which the goods will transfer. The exporter must package
the goods for the international voyage, must provide the importer with
documents necessary to clear customs, as well as arrange and pay for
transportation to the terminal. Our responsibility as importers begin when the
exporter deliver the goods and unloaded from the mode of transportation.
DAT.Puerto de Buenaventura, Colombia.Incoterms 2010.
Cost:

Exporting route from China: China( Xiangang) - Buenaventura, 37 days 17

hours
Dimensions of container: 40” Standard
Exporting route from India: Visakhapatnam(India) - Buenaventura, 42 days 20
hours
Dimensions of container: 40” Standard
 The costs exposed before are calculated according to the weight by
container.
6.4. Tea Other costs
The port of Xiangang is the chosen one, in order to be near the region of the
tea producer. Therefore, in the images below the tariff of maritime transport
are calculated by different port.
Firstly the chosen producer is Guangdong Jiaduobao Drink & Food
Co.,Ltd. since they are the ones the most competitive prices of the best
tea suppliers. Additionally, the costs of Maritime transportation to
Colombia can be seen in the images above.
 7. Sustainability Nowadays
Nowadays, in almost all industries, the tendency to reduce costs is taking a lot
of force, and with this have come with great developments that had not been
used before, but these developments had several unpleasant side effects,
such as, outsourcing to emerging countries. In low cost business, there is a
low concerns of less related stakeholders, and that is why the co-existence of
corporate sustainability and a low-cost business, sometimes is very difficult.
It was found out, that the sustainability, doesn't adds directly measurable
value, as for example, a better brand image. However, sustainability
minimizes the downside risk of the business model. According to a study in
the Scandinavian Industry(2015), it does so by, first, creating contracts that
reach beyond traditional shareholder value, and second, improving leadership
by motivating management and employees, and by directing their attention to
critical issues.
7.1. Sustainability in our low cost business
In order to obtain sustainability, it will be helpful to adopt some of the Tostao
strategies, such as optimizing the number of employees to the minimum
amount required, so that they can reduce a high percentage of their fixed
costs (even if this means that an employee has to do more than one function).
For example, the management of each stores will be in charge of the same
employees that serve the clients.
Another strategy our company is going to to (just exactly like Tostao) is to
minimize the costs in the administrative areas. For example, there is not going
to be any money invested in advertising (which is usually a huge amount of
money), and we could use that money in key things for our company like
acquiring very well located places to put the stores, which is what will actually
attract the customers.
Risk
Risk in the supply chain

Activity Level of risk

Organization and packing of Medium

merchandise in the factory

Shipment of merchandise from the High

factory to the origin port

Movement of goods from the truck to Medium

the standard containers in the port
Shipping of the containers to the port High
of Buenaventura in Colombia

Download merchandise from Medium

containers

Shipping by land to Bogota Medium

Unload and receipt of merchandise Low

8. Conclusions
● It is possible and profitable to have a sustainable low cost business in
Colombia, as long as there is a clinical control of the cost in the whole
supply chain.
● There is an important quantity of people in Colombia who drink tea, so
there is real opportunity to make an impact with this kind of business
9. References
➢ América Retail. (2013). ​Los cambios en la logística que trae
supermercados Ara​. [online] Available at:
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