Logistic operation services at Indupalma
1. Project’s identification
Involves diagnostics regarding project’s viability, through gathering analysis and classifying information within different areas such as: markets, technical, legal, corporate and financial aspects. In order to achieve the later the following activities are developed:
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Gathering and analyzing the project’s technical information (soil, vegetation diversity, requirements for growing, infrastructure requirements, among others).
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Study of legal, tax and policy regulations.
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Analysis of operational aspects (manual labor, access and logistics, vendors, among others).
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Identification of risks regarding the Project, as well as designing mechanisms to reduce their impacts.
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Market analysis with regards to offer and demand and prices.
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Analysis of investment requirements and financial mechanisms.
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Identification of benefits, legal, financial and tax incentives for the project (ICR, biofuel and international cooperation).
2. Design
This phase includes the architectural and design guidelines for the Project. This activity includes among other aspects:
a. Defining the corporate and/or organizational structure of the Project;
b. Technical information; regarding agronomic, environmental and infrastructural aspects; as well as financial and management aspects of the Project. This aspect includes the final proposal for the project’s development;
3. Financial and legal structuring
This phase includes the analysis, formulation and evaluation of the Project, through structuring a financial model designed by Indupalma that answers to the needs of producers and to the conditions of Colombia’s economic environment. This include among other activties:
Income forecast, through expected production and the fruit’s and palm oil prices.
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Costs and Expenses forecast within operational and administrative aspects.
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Cash flow forecast through modeling investments and necessary loans to develop the Project. These attend to the project’s debt capacity and credit lines available that better suit the Project.
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Financial statements forecast, taking into account the analysis of various indicators.
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Identification of monitoring and control indicators for the project’s operation (productivity, indebtedness per hectare, among others).
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Managing the allocation of financial resources for the Project through contributions and/or competitive financial sources according to the project’s conditions.
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Advising in the provision of bonds financial institutions.
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Legal creation of the entity executing the project.
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Counsel and legal support to ensure commitment from all parties to the Project.
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Legal counsel in all phases of business and of clients for their commercial relations within a framework of legal safety.
4. Project’s operation
Includes the following aspects:
Agricultural technical area
Its main activities are:
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Soil Study: Determines viability or soil potential to cultivate palm, taking into account agro-ecological aspects in the area or region (types of soil, topography, weather aspects, hydrological aspects, among others).
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Design of the Plantation: Includes the selection of vegetative materials, growth densities, road design, drainage and other civil engineering related work.
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Support to establish crops: Includes soil preparation, growing palms, establishing covers for the crop and advice in regrowth programs.
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Plantation’s Management: Corresponds to the crop’s full management, which includes hiring of supervising activities and follow up of field activities like harvesting, carry and transportation of the fruit, maintenance, crop’s plant health management, complete fertilization programs through Agricultural Management units.
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Technical agricultural training and coaching: Involves preparing and teaching related knowledge to producers who are part of the plantation’s productive process.
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Project’s environmental management: Monitoring and control to ensure the conservation of the productive ecosystem within the terrain where the Project is being developed.
Administrative area
Allows human resources, equipment, materials and communication and information infrastructure to support the project’s development. All within a framework of physical safety management to guarantee the normal functioning of corporate activities.
Its main activities are:
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Buying of supplies and products: Includes all necessary management to establish appropriate and competitive trading conditions. It is of special importance to follow price behavior of both Colombian and international supplies and products because of their impact over businesses.
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Treasury handling: Support in banking outlay proceedings, payments, invoicing and accounts receivables. If the financial structure requires the participation of a trust company, Indupalma supports management of proceedings for payment orders and follow up of income and expenses of the autonomous equity of the project.
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Information supply for accounting and tax aspects: Corresponds to supplying information about costs and expenses for accounting logs of operations of related companies.
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Consulting and legal accompaniment: Involves consulting, advice and specialized legal support for organized producers with their management related to public, private and financial entities that are related to the project, as well as legal management of all contracts to be made. Consulting and advice regarding legal control of lands, machinery, supplies, loans, guarantees, strategic partnership contracts, trust handling, etc. are also included.
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Accompaniment in organizing producers: Corresponds to the strengthening of all administrative aspects of associates who have been trained and accompanied. This support also includes training in accounting and financial aspects.
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Coaching and training: Includes identification of specific training needs of producers and their organizations, support to carry out the full program and verification of its fulfillment and compliance.
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Supply program: Involves ideal level inventory management, through identifying individual characteristics of different products and services (process impact, substitutes, provisioning periods, rotation and inventory levels), which guarantee the normal development of the Project.
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Storage: Includes follow up of supplies and products from the moment they enter de warehouse up to their final usage, to guarantee they are kept to technical specifications and conditions required by the Project.
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Contracting civil engineering work and buying management: Involves permanent evaluation of vendor portfolio, establishing an adequate replenishing of supplies and services that guarantee fulfillment of quality, safety, trustworthy, required prices aspects and negotiated time frames.
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Product delivery: Assures that finished product delivery complies with quantity, timing and quality specification aspects negotiated with clients, through rigorous mechanisms of inspection and control.
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Communication infrastructure: Involves equipment setup (servers, stations, peripherals, printing solutions, portable terminals for information gathering, among others) and implementation of communication networks if required.
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Information systems: Includes development and establishment of appropriate information systems to support the project’s operations, in such a way that they allow administrative and technical information to be integrated and thus guarantee the information’s availability. These systems include:
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Integrated Information Systems (IIS) of all the company’s operation, which covers:
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All operational and administrative processes.
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Alignment with operational procedures.
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Basic information for business intelligence tools.
Corporate Social Responsibility Component (CSR)
With the development of CSR, Indupalma will promote to producers and/or land workers in its terrains, among other aspects the following:
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Importance of one self’s dignity
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The opportunity to seize the future
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Claiming life back
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Building a legacy for their family and their region
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Self determination
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Reaffirmation of self respect and for others
Education
Certain that education is the most important tool to promote change and obtain the project’s objectives, Indupalma will enroll new producers and/or its workers in training programs at all levels making them partners in the process of wealth generation. This training includes four levels:

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Entrepreneurial: Strengthen producers’ knowledge in relation to their environment and economic activity.
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Technical: Facilitate accomplishment of their own productive work (crops and palm oil processing)
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Inner self: Strengthen producers’ self esteem and skills for self-determination.
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Formal Education: Indupalma encourages basic, middle and superior education to its work force. Associates receive classes to learn how to manage accounting and financial forecasts for their projects. In addition specialization, masters and short courses are offered to complement their professionals academic formation.