CHIQUILLO

Small Enterprise

I. Demographic Profile

Number of years of operation: 29 years

Business type: dealer/ distributor

Business Activity: Wholesaling and retailing (Delivers commodities to grocery stores for retailing)

II. Interview Questions

1. In terms of cost management practices, how does the company identify its products or
services to its customers?
a. Beverage buying and selling is seasonal. The greater the demand for a
product, the greater the volume purchased and sold to customers (retailers).
The lower the market demand for a particular product, the lower the volume
purchased from the manufacturer.
b.
 We buy large volumes of drinks and beers depending on the month
expected to have high sales (harvesting season and months without
classes) and purchase lower volumes during the month of lower
expected sales to avoid overstock and expiration of the beverages,
thereby resulting in a loss.
 We ask for advice directly from San Miguel Corporation on how to
manage nearing-expiry products

c. Our company chooses to deliver products to retailers who are near nearby
delivering retail stations to save up costs on diesel.

2. With the threat of economic changes, we respond to them by lowering our budgets.
3. Yes, our company both uses built-in software and physical inventory count to verify the
accuracy of inventory on hand and avoid inventory loss. We do not acquire external
services as we have a bookkeeper in our company.
4. The continuous increase in diesel. When the price of diesel increases, our total costs
also increase.
5. To save money on diesel, the company chooses to deliver products to retailers near
nearby delivering retail stations.
6. Our objective depend on the evaluation from San Miguel Corporation, which varies
monthly. Yes, our objective is net on a regular basis.