LATAM Awakening as a Tech Hub | Jose Bonilla, Co-Founder & CEO of Chiper
How Chiper is Transforming the Corner Store Supply Chain in Latin America
What is Chiper and How Did it Start?
Chiper is a marketplace providing over 3,000 consumer packaged goods (CPG) for independent corner stores across Colombia, Mexico, and Brazil. Founded in 2018, Chiper aims to streamline the supply chain for these small retailers by offering same or next-day delivery. This model supports independent store owners in becoming more successful businesses by optimizing the logistics between suppliers and retailers.
Why are Corner Stores Vital in Latin America?
Unlike the United States, where supermarkets dominate the grocery market, corner stores play a crucial role in Latin America. In countries like Colombia, Mexico, and Brazil, corner stores account for up to 90% of the grocery market, especially in low to middle-income areas. These stores serve as the primary source of day-to-day goods, acting as the "shelf space" for many households.
Why Did Jose Bonilla Start Chiper?
Jose Bonilla, co-founder of Chiper, recognized the opportunity to improve the supply chain for corner stores through his work with software for large companies. Initially, Chiper started as a project to optimize the supply chain between suppliers and end consumers. Over time, as more stores and suppliers began to engage with the platform, it became clear that there was a significant demand for a service that could provide a larger selection of products and efficient delivery.
What Does Product-Market Fit Look Like?
For Chiper, product-market fit was evident when both stores and suppliers started pulling for more. As Bonilla explains, recognizing when you have product-market fit is crucial for any entrepreneur. It means that customers are actively seeking your product, and the demand becomes organic rather than forced.
How Did Chiper Scale Its Logistics?
Scaling logistics for Chiper involved a mix of doing things manually at first and gradually incorporating third-party logistics (3PL) providers. Initially, Chiper used a single truck and a spreadsheet to manage orders. As demand grew, they rented space in existing warehouses and hired independent contractors for delivery.
Operational excellence is key in logistics, especially with tight margins on CPG products. Chiper focuses on strict process management and continuously seeks to improve their systems to enhance efficiency and cost-effectiveness.
What Are the Steps to Build a Logistics Operation?
- Start Manually: Begin with your resources, like using your car for deliveries. This hands-on approach helps understand customer expectations and the challenges of delivery.
- Partner with 3PL Providers: Once demand grows, partner with logistics companies for warehousing and transportation.
- Hire Experts: If needed, bring in logistics experts to optimize processes.
- Invest in Technology: Use logistics software to streamline operations and improve efficiency.
- Own Critical Processes: Decide which parts of the logistics chain are critical and worth managing in-house.
How Does Chiper Define Success?
For Chiper, success goes beyond financial metrics. It's about fulfilling their purpose of eliminating societal paradigms by providing better opportunities and services to store owners. This mission drives the team every day and keeps them focused on making a real impact.
What is the Entrepreneurship Environment in Colombia?
Entrepreneurship in Colombia has evolved significantly over the past 15 years. Today, there is a thriving ecosystem with many tech companies and startups. Universities are increasingly incorporating entrepreneurship into their curricula, and more people are seeing it as a viable career path.
FAQs
What is Chiper?
Chiper is a marketplace providing consumer packaged goods for independent corner stores in Latin America, offering same or next-day delivery.
How did Chiper start?
Chiper began as a project in 2018 to optimize the supply chain for CPG products between suppliers and corner stores.
Why are corner stores important in Latin America?
Corner stores account for up to 90% of the grocery market in Latin America, serving as the primary source of day-to-day goods for many households.
How did Chiper scale its logistics?
Chiper scaled its logistics by starting with manual processes, partnering with third-party logistics providers, and investing in technology to optimize operations.
What defines success for Chiper?
Success for Chiper is about fulfilling their mission to provide better opportunities and services to store owners, beyond just financial metrics.
How has the entrepreneurship environment in Colombia evolved?
Over the past 15 years, Colombia has developed a thriving entrepreneurial ecosystem with many tech companies and startups, supported by educational institutions and a growing community of innovators.
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By providing a comprehensive overview of Chiper's journey, this article not only highlights the company's impact on the corner store supply chain in Latin America but also offers valuable insights for aspiring entrepreneurs. For more in-depth discussions on venture capital and entrepreneurship, visit our blog or explore our incubator program.