Introduction

How Mexico gets its groceries

Nearly half of Mexico’s groceries are supplied through small corner stores, also known as tienditas. These stores, mostly family-owned businesses, operate mostly within the framework of the pen and paper economy. 78% of household expenses for food and beverage are attributed to tienditas, making them a staple of the Mexican economy. They come in different shapes and sizes, ranging from garages and parts of family homes to small store locations situated in local communities. Most tienditas keep a low profile, so implementing digital commerce solutions proves to be difficult as there is nearly no existing infrastructure to rely on. Given those circumstances, however, there is an opportunity for growth by creating basic digital assistance and eliminating key problems along the way for businesses to be able to conveniently grow.

Challenge

Inefficient supply chains posing a heavy burden

Mexico has a problem with supplying its population with groceries through supermarkets. A significant portion of the Mexican population does not have access to a supermarket. Tienditas are therefore the only option for Mexican households to get their daily needs met. The stores themselves, however, are difficult to operate. Groceries are bought at wholesalers by the store owners themselves and are then supplied to the store. This process takes a lot of time and strains the operations. Furthermore, by being based on a pen and paper model, most Tienditas don’t have access to digital infrastructure or a bank account. There is a lack of a coherent commerce strategy. The main challenge is improving the business case for these stores and easing their struggles in re-stocking their shelves and supplying their communities.

Solution

Creating a B2B network tailored to family businesses

Dupplo, powered by Spryker, is Mercado Mayco’s answer to B2B supply for tienditas. Most tienditas are equipped with a smartphone. Dupplo is an online store that allows tiendita owners to stock and supply their stores without having to drive themselves. The app is designed simply with all key features at hand, and store owners have the opportunity to opt for cash payment upon delivery so that they can keep their shop running, focusing on the store operations. The app is accompanied by complementary features for drivers and offers store owners the option to choose their delivery window and plan their inventory accordingly. It also includes special alerts for discounts on bulk orders, informing shop owners which quantity results in the lowest price. The design was carefully made with the needs of a small family-run business in mind. This will allow for growth and add value to small corner stores. The goal, of letting the shop owners allocate their precious time for shop operations instead of supply processes, was fully accomplished.

Results

Succeeding in implementing new supply infrastructure

For vendors who have implemented the app, the benefits of delivery and being able to re-stock through an easy service lowered personnel and transportation cost associated with supplying a tiendita. Furthermore, the app has shown that a new form of infrastructure can take hold, so long as local customs and the specifics of the economy are looked at. Shop owners can still process everything in cash and can still maintain their pen and paper economy. Ease of use allows for customer satisfaction and the B2B model guarantees that the tienditas still remain the main source of grocery supply to local communities, as the owners keep their market share.

Powered by AWS

Thanks to AWS, Spryker was able to fulfill the customer's needs, when they needed it to make it a success. The composability on AWS is crucial to deliver the highest level of flexibility for customer requests. It allows the customer to select the best-of-breed components they need, which will work seamlessly and reliably straight away, thanks to Spryker being a truly composable platform and the high levels of service AWS has. Due to AWS, the onboarding takes from as little as 4 hours to 1-2 days, compared to months previously. With the Spryker Cloud Commerce OS solution, built on AWS, Spryker can scale computational and storage resources to accommodate the customer's goals.