Discovering the supply chain of
SMU
P R O J E C T PA R T N E R S
A solid organisation committed to the Chile’ Supply Chain Digital society discovers the processes
involved in SMU’s strategic management for the supply chain by speaking to Melania Chaverri, Head of Procurement
SMU
04
is a Chilean super-
restructure the purchasing area in a
market chain and
centralised manner, implementing a
part of CorpGroup,
planned sourcing strategy for
formed at the end of 2007 from the
goods, services and assets that we
acquisition of more than 60 regional
call ‘no retail’. Part of this process
supermarkets chains. Currently, it is
has been to transform decentral-
the supermarket company with the
ised tactical purchasing
largest coverage in Chile with sales
management into a centralised
of $3.6bn annually.
model,” explains Chaverri.
The company has more than 500
“We have also structured purchas-
stores throughout the 15 regions of
ing policies and procedures
the country through its different for-
incorporating technology within the
mats (Unimarc, Alvi, Supermarket
supply process through e-procure-
Wholesale 10, OK Market and Tele-
ment solutions such as Ariba, which
mercados.cl) that adapt to the
will allow us to achieve greater effi-
needs of customers.
ciency in the processes and reduce
Melania Chaverri, Head of Procure-
trading times.
ment, has been a key person in the
“On the other hand, we have a col-
success of SMU. She was part of
laborative work model with the
the company between 2010 and
other functional areas of the com-
2011 as Procurement Manager,
pany, which allows us to align
returning in 2014 as Head of the
supply strategies with corporate
division to help drive the firm’s
goals and objectives set by senior
restructuring and modernisation
management.”
plan. The was applied between 2014 and 2016 with focus on com-
OPERATIONAL COST CON-
mercial strengthening, operational
TROL AND QUALITY
efficiency and financial and organi-
STANDARDS
sational development.
One of the strategies Chaverri has
“My role within SMU has been to
worked on has been the intelligent
“ We have a collaborative work model with the other functional areas of the company, which allows us to align supply strategies with corporate goals and objectives set by senior management” — Melania Chaverri, Head of Procurement BIO
Melania Chaverri started her career in Strategic Sourcing in 2002 in Costa Rica, in the division of Global Procurement Walmart, area of food and fresh fruit. She has an MBA from the Interamerican University of Costa Rica.
05
In 2004, she was transferred to Chile together with Walmart Food Sourcing for the development of export of fruits and processed foods for private label from South America to Walmart worldwide. In addition to her experience in the area of food, she has held positions in retail companies including Cencosud, where she developed in the area of supply for supermarkets and department stores and home improvement. Subsequently, in 2014 she joined SMU as Head of Procurement in the areas of services, operational inputs, CAPEX, facility management and insurance. w w w. s m u . c l
10,000+ Approximate number of employees
control of costs. “We manage the
gies for each category,” adds
purchases of operational expenses
Chaverri.
under a ‘category management’
Thanks to its optimisation in service
strategy, consolidating the demand
contracts, SMU managed to reduce
of all our business units with each
operating expenses from more than
one of their specifications. In this
25% in 2013 to less than 22% in the
way, we coordinate the sourcing
last periods.
and negotiation activities with
The work with suppliers in terms of
which we increase the added value
quality standards has been another
defining unique and specific strate-
key to cost reduction. SMU sees its w w w. s m u . c l
INTEGRATION OF TECHNOLOGICAL SOLUTIONS FOR THE SUPPLY CHAIN
www.stgchile.cl contacto@stgchile.cl
STG has more than 16 years of experience, with offices in Chile, Argentina, and PerĂş, where we integrate technology to improve end-to-end Supply Chain processes.
+562 2726 6500
cl.issworld.com ISS Chile
@
info@cl.issworld.com
With more than 117 years of experience in Cleaning, Catering, Maintenance, Security and Support services; ISS Facility Services has been present in Chile since 2004. It has over 15,000 collaborators and it offers services in more than 3,500 facilities for 300 clients, who they help improve their performance and operational excellence, through the IFS model (Integrated Facility Services), based on the creation of value through outsourcing and integration of services, creating more economical and flexible solutions.
FACILITY MANAGEMENT | CLEANING | PROPERTY | CATERING | SECURITY | SUPPORT
suppliers as strategic partners with whom it develops a clear joint strategy of specifications, establishing the standards that ensure
“At the end of 2012, we created the ‘100% Ours’ programme, a unique initiative in the country with the purpose of empowering SME suppliers throughout the country and the development of the regions” — Melania Chaverri, Head of procurement
the quality of the final product. This is why Chaverri works closely with local producers in Chile. In this line, the company’s commitment to small and medium-sized local entrepreneurs is developed. “At the end of 2012, we created the ‘100% Ours’ programme, a unique initiative in the country with the purpose of empowering SME suppliers throughout the country and the development of the regions,” she says. “Through this programme, we seek to encourage our customers the preference for regional products, highlighting them in our gondolas and privileging, in this way, small local businesses. It also allows us to offer our customers fresher and characteristic products from the area, thus generating shared value among local suppliers, our customers and Unimarc.” TECHNOLOGY, THE SUPPLY CHAIN AND THE CONSUMERS
Process automation is guaranteeing faster and more effective purchases for consumers, with better services. The supermarkets adapt to their customers so that the purchase transactions are made in the best way w w w. s m u . c l
09
SMU WAS FORMED FROM THE ACQUISITION OF MORE THAN 60 SUPERMARKET CHAINS
“OVER
31 YEARS
OF QUALITY” Inapol, leader in bag solutions for waste management and merchandise containment.
www.inapol.cl
SMU OPERATES THE BRANDS: UNIMARC, ALVI, SUPERMERCADO MAYORISTA 10, OK MARKET AND TELEMERCADOS.CL (E-COMMERCE)
and in the shortest possible time.
use of this will be in the process
For this, technology is fundamental:
of recurring purchases, that is,
SMU will invest 20% in technology
simple purchases through e-pro-
and logistics in the next three years.
curement applications, as well
“In this context, SMU is working on
as in certain processes, generat-
the optimisation of our web plat-
ing efficiency and performance
forms to enhance e-commerce and
in a context of procure-to-pay in
directly benefit our customers, with
addition to the continuous
the aim of making online purchases
source-to-pay in the technology
safely, quickly and easily. Super-
of classification of expenses.”
markets are also adapting to this trend by creating their own e-com-
TEAMPLAY AND FEMALE
merce capabilities and partnering
OPPORTUNITY
with successful operators in the last
SMU employs more than 30,000
mile.”
employees, being the fourth
Artificial intelligence has also been
employer nationwide with 64%
implemented into supply manage-
women and 1.8% migrants.
ment. Chaverri explains: “The main
According to its transformation w w w. s m u . c l
11
“We have also structured purchasing policies and procedures incorporating technology within the supply process through e-procurement solutions such as Ariba” — Melania Chaverri, Head of procurement
12
plan carried out between 2014 and
– cooperation, empathy, the ability
2016, the company follows a strat-
to model teams and make strategic
egy to train and enhance the skills
decisions. This comes to comple-
of its teams, allowing employees to
ment the perspective of the boards
develop professionally and SMU to
of directors,” Chaverri says.
improve results year after year. Chaverri participated in the eighth
POSITIVE IMPACT ON
edition of the BOW Program (Board
COMMUNITIES
Of Women), developed by Business
SMU is committed to reflecting the
Women with the aim of offering
culture and needs of Chilean soci-
training to women to hold
ety, actively working to leave a
positions as C- and V- executives
positive footprint in the areas where
and to lead businesses with high
it operates.
growth potential.
“We have a commitment to inclu-
She explains: “Among the main
siveness of people with disabilities
objectives are the development of
in the workforce, a promise that falls
management skills to face dynamic
within the axis of sustainability in
ventures, the strengthening of stra-
our Strategic Plan 2017-2019.
tegic design capacity and the ability
Since 2012, we have had a pro-
to align the different areas of the
gramme that, to date, has allowed
business. It is also about exercising
the entry of around 250 people with
strategic and transformational lead-
some degree of disability to our
ership to strengthen the work of the
businesses and stores in the coun-
management team.”
try. Their arrival has generated an
In this regard, the executive
excellent working environment and
believes that “it has been proven
is very beneficial for the company,
that a strong female presence in a
sensitising the rest of the staff and
company delivers value. In addition
promoting teamwork,” Chaverri
to professional skills, female leader-
explains.
ship stands out in the organisation
As part of this commitment, SMU w w w. s m u . c l
13
SMU S.A.
FACT
‘THE SUPERMARKET CHAIN WITH THE GREATEST GEOGRAPHICAL COVERAGE AND THE NUMBER OF STORES NATIONWIDE’ 14
will continue to invest in transforma-
development and strengthening of
tion to offer the best of itself as an
the financial position. In terms of
organisation: “SMU is implement-
experience for clients, the company
ing a strategic plan 2017-2019,
is carrying out a remodelling plan for
based on six pillars: customer
130 stores throughout Chile during
experience, operational efficiency,
the next five years (2017-2021),�
alignment and commitment, sus-
concludes Chaverri.
tainability, technological
15
w w w. s m u . c l
Cerro El Plomo, piso 11, Las Condes, Santiago de Chile 5680 T +569-7211-1211 mchaverri@smu.cl www.smu.cl