Omar Salgado Intenational Manufacturing

Team:

1. Anzaldo Aguillón, Jorge Armando
2. Frías Cedillo, Manuel
3. García Alvarado, Rafael Alberto
4. Wilson Berrutti, Daniel

Scenario:

Construmac is a Mexican company founded in 1976, dedicated to marketing of heavy machinery such as concrete pumps, mixers and pans stone crushers, among others, for the construction industry and mining, and thanks to an exclusive agreement distributes leading brands such as Putzmeister, TEREX McNeilus in Mexico. Since the current market is highly competitive the company has achieved steady growth by offering only the highest quality products in the world, an outstanding after-sales care and a support than its competitors.

The two largest customers of the company are focused on building hydroelectric plants as part of its expansion plans sought internationalization of their operations, thus achieving awarded two contract to build power plants in Panama.

With product quality and after sales service offered by Construmac these companies acquired U.S. $ 6.5 million in machinery for these projects.

These builders began to have problems in its operations in Panama because the lack of technical, economic and structural representative Panama is causing this failure machinery for lack of maintenance adequate spare parts and after-sales service, thus causing delays work and financial losses for the client. Despite the frequent meetings between Panamanian Construmac and dealer customer service has continued to experience failures constant and therefore the construction of repeated complaints.

Because of this Construmac took the determination to offer service customer from Mexico, a situation that largely settled the problem of failures machinery, however, the secondary consequences of this measure were increased costs of replacement parts for the customer due to the cost of air freight urgent and the increase in operating costs and customer thank Construmac travel expenses and per diem of technical staff.

Conflict:

The client continues to accumulate grievances and complaints, requiring the company absorb the costs of travel and per diem for the lack of a capable representative in Panama, in turn, Construmac is increasing its sales and operating costs with which reduces their profits. In short, if you do not find a solution that is suitable for the customer and cost-efficient to run the risk Construmac of losing not only services in Panama, but it also works and acquisitions in Mexico.

Problem Solving:

Construmac’s vision is to eliminate the client-provider split by securing a supply of after-sales service and technical advice high quality while taking advantage of these changes to expand the operation of business into new markets.

First, the company analyzes the option of opening a branch in the city Panama to service parts and technical advice to their customers at least two during the time duration of the projects previously mentioned. In this sense have to analyze inventory levels adequate to serve the machinery sold, the amount of administrative staff should be hired and and expected capabilities and number of technical staff and processes training to be taken.

Second, as part of cost-benefit analysis of this decision must analyze a market survey to establish the possibility of attracting customers and sales in the plaza and to ensure the economic viability of the branch in the medium term. In turn, given the closeness of the country with Costa Rica and Colombia should be analyzed can also attack these markets and expand the potential customer base for the company.

Finally, if there is the feasibility of opening the branch should explore the possibility of establishing an agreement with manufacturers so that obtain marketing approval of the full range of machines on the market Panama, or compete with the current provider.

Conclusion:

In short, to the constant complaints from customers in Panama Construmac and given the same attention from Mexico is causing costs increase the company’s operating and customer-supplier relationships follow deterioration of the company thinks that probably the best option to solve the problem is to open a branch in Panama and leverage the investment to expand operations and sales to Central American market.