When we think of outsourcing we think of information technology to India, not, farming in South America. Los Grobo outsources contractors to maintain, harvest, and the sale of crops in particular grain and soybean. Los Grobo accomplishes all phases of crop farming with the use of enterprise resource planning system: Grobosoft. Enterprise resources planning system allows Los Grobo to integrate internal and external management information across the entire company and manages all connections to outside stakeholders. The outside stakeholders in this unique business model are the outsourced contractors Los Grobo hires. These contractors are skilled and experienced in different phases of cropping grain and soybean. Is this business model sustainable…. Yes, Los Grobo business model offers multiple phases of cropping grain and soybean that has the potential to last well into the future for several reasons.
Within this case study, Los Grobo offers 6 phases of cropping grain and soybean in South American countries. The first phase is the actual planning of the crop season. The second phase is research and seed tests. The third phase complete package inputs sales and financial services. The fourth phase is planting and constant crop monitoring. The fifth phase is harvest. The sixth and final phase is the sale of grain. Los Grobo’s business model demonstrates a one-stop shop.
Outsourcing is necessary for many companies who look for expertise in an industry and cost reduction in labor. Los Grobo taking advantage of outsourcing and in return their business model will last long into the future. Gustavo realized in the 1980’s that he knew more than the typical farmer in Argentina because he not only grew up in this industry but also was a professor of agronomy in soil conservation. Gustavo’s knowledge of soil conservation, he rented land that was once underwater and he knew that the land would recover and become nutrient again to grow crops. With the knowledge of soil, he...
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