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 also made the decision that no-till farming would conserve the soil. As you can see, Gustavo was more knowledgeable then other farmers.
Over the past few decades, Los Grobo has been very profitable because they have more knowledge of the cropping industry and use ERP systems to share this information with stakeholders. Los Grobo’s ERP system communicates so well within the South American cropping industry; they are now expanding into other South American countries like Brazil, Paraguay, and Uruguay. This will help Los Grobo grow because they can now crop all year around and increase the different types of crops grown.
Another aspect Los Grobo prides them on networking. Networking will help Los Grobo’s grow not only in their current market but as well in the new South American countries they want to expand into. At first, they have a hill to climb to get acquainted with the new countries culture but since they have such a strong image and voice in crop farming, they will have the expertise and knowledge to build new relationships. Since they outsource all 6 phases of crop farming, they can focus relationship building and networking.
New markets will work with Los Grobo because of their knowledge and expertise that they share with their soon to be stakeholders. This will help these new countries become stronger in marinating, harvesting, and selling crops in a developing global economy. As time goes on, countries and companies will provide products and services (crop farming) in which they’re skilled. Los Grobo and Gustavo are sharing crop-farming information through their ERP system Grobosoft that will soon expand into other countries and soon new continents.
These crop farming areas and markets will become essential to the success of crop farming in an global economy and Los Grobo has realized that information technology and relationship building is essential for company growth and all this information is operated through a specialized and successful ERP system full of knowledge from all aspects of crop farming. This information is then shared with all stakeholders across all phases of crop farming giving this company and area a competitive advantage worldwide now and into the future. Information is very valuable along with Grobosoft.