Grupo Pão de Açúcar

At the end of 2011, one of the largest food retailers in Brazil, Grupo Pão de Açúcar - or GPA - was reviewing its accounts payable terms with suppliers in search of additional value. Manager of analytics Maria Cristina Santos was examining the trade credit terms GPA had with Oalem, a family-owned melon grower. Oalem, like most small family businesses, was financed with bank loans and equity that was held predominantly by the family. The case examines how accounts payable (trade credit) terms should be set or negotiated between a large retailer and a small supplier.