Investor Presentaiton
Ogistica
11
PRODUCTIVITY IN ENERGY AND MERCHANDISING
Another accomplishment in productivity in Mexico is the savings stemming from
a reduction in energy use in our stores -some 3.3% less and 61 million kWh-
which is equal to the annual energy used by 34,000 homes and 30,000 tons
less of CO2 emitted into the atmosphere. Initiatives such as installing doors for
refrigerated display cases in our stores, modernizing the lighting system with LED
bulbs in our units, among others, helped us to achieve these savings.
Thanks to the new commercial structure and centralized system we now have,
productivity in our merchandising departments improved significantly. By
focusing on areas of specialization, greater efficiency in merchandise processes,
selection and segmentation has been possible. Closer attention is paid to
suppliers as they now have a single contact point instead of a different buyer in
each format.
At a consolidated level, all these productivity initiatives and disciplined expense
management has allowed us to post increases that are less than half the growth
rate of our sales floor. On a comparable basis, excluding the store lease expense,
general expenses increased 5.2%, whereas the average sales floor growth was 7.1%.
MIGRATION OF ADMINISTRATIVE PROCESSES
TO COSTA RICA
The need for a flexible organization, ready to adapt to the ever changing needs
of the customers, also necessitates having a high-performance administration.
This has been accomplished with the creation of our Global Shared Services for
Latin America (GSSLA), located in San José, Costa Rica. It is here where we have
consolidated the processing of financial operations and transactions, not just for
Mexico and Central America, but for the other Latin American countries where
Walmart operates.
GSSLA is a service-oriented organization that offers support to our internal customers
by consolidating accounting processes, systems, and transactional operations.
Among the more important operations that have migrated are: accounts payable
and accounts receivable management; asset and master data management; central
accounting; payroll processing; payment analysis; and supplier claims. The benefits
of having centralized these activities are multiple, such as operational savings,
process standardization, implementation of best practices, and leveraging costs and
support services.
Another accomplishment in productivity in Mexico is the
savings stemming from a reduction in energy use in our
stores -some 3.3% less and 61 million kWh- which is equal
to the annual energy used by 34,000 homes and 30,000
tons less of CO₂ emitted into the atmosphere.
2013 Financial and
Social Responsibility Report
Warmart
GSS Latin Amer
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