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Suppliers: the value of local products

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The DIA Group maintains a trusting, professional and long-lasting relationship with its suppliers, which allows it to offer its customers the best quality at the most competitive prices on the market. The multi-channel model developed by DIA enabled it to add more than 4,500 suppliers of both own-label products and the national brands in the five countries at the end of 2016.

The DIA Group selects its suppliers based on criteria of competitiveness, process flexibility, and maximum product quality. All suppliers responsible for manufacturing DIA brands are subject to several internal and external audits, both of their own factories as well as the product, which are conducted regularly during the relationship between both parties.

In 2016, the DIA Group’s supplier purchases amounted to EUR7.8bn, in line with the previous year. Purchases from suppliers of own-label products amounted to EUR3.2bn, compared to purchases of EUR4.6bn from national brand suppliers.

In keeping with the commitment to proximity shopping and closeness to the customer, the DIA Group has an extensive network of local suppliers that contribute to business efficiency and adapt fast to changing customer tastes. Accordingly, 88% of suppliers working with the company are local. By country, Spain has 89% local suppliers, Portugal 57%, Argentina 97%, Brazil 98%, and China 100%.

In addition to trust and transparency, the DIA Group also bases its relationship with suppliers on durability. In fact, in Spain, where the company has been operating for more than three decades, the average commercial relationship with suppliers is 15 years.

*Located in our country with Spanish Tax Id (CIF)

Greater process control

To achieve greater streamlining and efficiency, DIA provides its suppliers with a series of internal tools aimed at monitoring and exercising greater control of processes, which makes it possible for both parties to work together in the quest for excellence. Through the three websites for the exclusive use of suppliers, DIA offers personalized information on the evolution of the suppliers in the commercial, financial and logistics area.

The supplier commercial website includes information on sales of products in the different categories, in addition to a more general and historical overview, showing the performance versus previous years.

On the financial website, suppliers have all the necessary information for better control and management of administrative tasks, such as orders and payments. This tool allows suppliers to access payments made, outstanding payments, charges, and related information. This tool also makes it possible to obtain information about invoices, advances, or financing to streamline administrative processes between parties.

Lastly, suppliers also have a website allowing better control and monitoring of logistics processes. This system provides access to information regarding adherence to delivery schedules, faults, days of stock and different service conditions. The logistics website also allows access to sell in and sell out information and weekly consumption forecasts.

Relationship of trust and transparency

The relationship of trust that DIA has with its suppliers is essential in terms of offering customers a quality end product aligned with their needs. Based on the principles of its Code of Ethics, applicable to all countries of the group, the company has an ethical consultation channel for suppliers to resolve doubts or disputes that can arise regarding the commercial relationship and inform about possible breaches of the code by both parties. This consultation channel is managed directly by DIA’s Ethics Committee.

Likewise, in line with this commitment to transparency, all DIA contracts with suppliers include a clause indicating that the company is a signatory of the United Nations Global Compact.

Increase of exports thanks to the impetus of the DIA brand

EUR19.1m. Total export sales of the DIA Group in 2016

The DIA Group exports its own-label products from the Spanish and Portuguese markets, providing an ideal platform for business expansion and growth in countries where the company does not have a physical presence.

In addition to increasingly consolidating the DIA brand globally, exports also enable the company to broaden the scope of action of the local suppliers with which the company works and promote its image internationally. In 2016, more than EUR19m was invoiced through these exports, which were delivered to 31 markets worldwide.

DIA Group: Total export sales in 2016: EUR19.1m.

  • Algeria
  • Azores
  • Benin
  • Bulgaria
  • Central America
  • Comoros
  • Congo DRC
  • Ivory Coast
  • Cyprus
  • Ghana
  • Guinea Conakry
  • Mayotte
  • Gambia
  • Ghana
  • Guinea Conakry
  • Equatorial Guinea
  • The Netherlands
  • Hong Kong
  • Reunion Island
  • Angola
  • England
  • Mauritius
  • Nigeria
  • New Caledonia
  • Dominican Republic
  • Romania
  • Saint Martin
  • Senegal
  • Others: Traders export
  • Sao Tome
  • Others: Azores_Madeira

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