Sunday, May 23, 2010

Integrated Suppliers

Janina and I did some research on Mercadona and its logistics system. This a post about Mercadona's integrated suppliers.

The suppliers play a key role in Mercadona’s Total Quality Model.
Mercadona’s philosophy is to base their relationship with their partners (Mercadona has more than 100 of them) on trust, stability, constant work and joint commitment. Their common goal is to satisfy the needs of the customers by providing the best quality-price ratio on the market. They reach this goal by eliminating everything that does not provide any value.

Square olive oil bottle which optimizes logistical processes. Integrated supplier Sovena.

Wine bottle stack that increases palletizing capacity. Integrated supplier Bodegas Ontanón.

Especially the manufacturers of Hacendado, Bosque Verde, Deliplus and Company brands are integrated firmly in the company since it is thanks to the cooperation with them that Mercadona achieves its goals.
This cooperation has a lot of socioeconomic benefits because the growth of these suppliers directly translates to the generation of wealth and employment for the communities in which they are carrying out their activities. In addition to that, one should not forget the impact on Spain’s economic output as a whole.

In general it can be said that Mercadona’s model of having integrated suppliers shows solidarity with the entire value chain since these suppliers also have continued commercial relationships with over 8,500 SMEs.

Ensuring stable prices
In order to enable their suppliers to guarantee the quality and safety of their products, Mercadona enters int “contacts for life” with them. Mercadona is committed to stable relationships with their integrated suppliers to allow them to plan their growth rationally.

Mercadona guarantees the farmers a stable price for each kilo of fruit and vegetables in order to avoitd fluctuations of prices.

Tracking products from their origin at Mercadona

Mercadona and its fruit and vegetable suppliers tried to guarantee more transparency in the origin of their products by hiring an external auditing firm (Norma Agrícola) in 2009, to certify the tracking of products from their origin.
The astonishing result of this was that 85% of the total volume of products solb by Mercadona in 2009 originated in Spain. Only 15% were imported because of seasonality and unavailability reasons of the domestic market. Therefore it can be said that Mercadona’s activities in the agricultural sector are very sustainable and responsible.

Check out
to see the full annual report 2009 of Mercadona.


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