Investor Presentaiton
5. Ensuring the purchase of agricultural, aquacultural, and fishery products
in the proper volume, at the right price, and with optimum conditions of
freshness and food safety so as to reduce the risk of physical, chemical, and
microbiological contamination represents a major challenge in the way we:
Purchase our merchandise:
a. Creating a structure of experts who buy product families and categories,
nationwide; who are fully aware of production seasons and cycles, and who
serve the different businesses, with the purpose of creating a better value
proposition for our customers, thanks to improved planning.
b. Ensuring product quality through the use of standardized product cards
adapted to seasonality, audits, and product-quality certification. The
greatest challenges consist of food safety, the supply of quality water
systems, supplier labor and working conditions, the logistics network, and
collection centers.
c. Extending the process used for direct purchases from national growers,
thus obtaining lower prices and increased freshness. There is a sustainable
agriculture program in both Mexico and throughout Central America that
helps farmers increase their production capacity for direct delivery, and
to verify practices and yields. Through this program, the farmers receive
training in logistics and market-related matters.
1. EFFICIENT SUPPLY
2. IMPROVE INVENTORY TURNOVER
3. OFFER FRESH DAYS
4. SELL MORE TO OUR CUSTOMERS
In order to help small suppliers who have low-income levels and live in
remote areas of the country, we have developed differentiated commercial
programs for payment terms, special conditions in distribution centers,
and personalized assistance from Merchandising and subjects related
to production processes, administration, and post-harvest management,
thereby resulting in an independent organization and support from the
Company through its areas of corporate responsibility in Central America
and the Walmart de México Foundation.
In Central America we purchased over 1.6 million pesos in products from
these suppliers, representing 69% of the produce and grains sold in our
stores.
Move our merchandise: By reducing the days spent in the distribution
centers, applying a flexible quality system, and limiting the sell-thru of
overly mature products, we are able to increase the days of freshness for
our customers. The incorporation of Food Banks in the network allows
for full use of the merchandise. The company's logistics network is a key
efficiency point for our business, and for the growers it means an increase
in the shelf-life of their perishables.
Sell our merchandise: By increasing freshness, ensuring supply and the best
possible prices for our customers, we are able to have a positive impact on
their shopping experience.
THREE KEY PRIORITIES TO IMPROVE STORE-PROFIT
CONTRIBUTION IN PERISHABLES
TRUST
2
=
ម
REPUTATION
+
LOYALTY
3
1
2013 Financial and
Social Responsibility Report
SUPPLIER
PURCHASE
AND SUPPLY
CHAIN
THE CUSTOMER
REPLENISHMENT AND
LOGISTICS
IN STORE
SHOPPING
EXPERIENCE
45
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