Suppliers
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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.
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Exports made from Iberia
- 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
Quality, the main commitment
The DIA Group’s main commitment to the customer is to offer products that have the best value for money.
The DIA Group’s Food Quality and Safety policy, approved by the Board of Directors in 2016, establishes the general principles that govern the company’s activity in this area.
The entire DIA Group and, in particular, the Quality Control team (with 267 employees), is focused on this commitment to the customer.
The DIA Group’s strategy to guarantee safe, quality products to customers is based on a Quality Management System, which is certified under ISO Standard 9001:2008. The system covers everything from the validation of suppliers, the technical definition of the product and the evaluation of proposals by the consumer through blind tastings (at the product development stage), to the analytical control after the merchandise has begun to be distributed to the warehouses and the store network (internal and external control plans).
During the final selection stage of suppliers for the own brand, applicants must pass a strict standardization audit, which guarantees the safety of each of the plants where DIA products are going to be made.
This audit also evaluates both the general management of activities and facilities, as well as the specific production conditions and the quality and environmental control system. 100% of the suppliers of own-label products have been audited, and out of these, 60% have IFS and BRC certification.
100% of the suppliers of own-label products have been audited, and out of these, 60% have IFS and BRC certification.
As an additional requirement for their incorporation into the own-label range, each product must be submitted to and pass a consumer tasting test that allows an assessment regarding the organoleptic characteristics of the product under development.
In 2016, a total of 2,879 validation panels were conducted in group countries.
The quality and safety of the products received in the warehouses and stores is supervised through a comprehensive control plan. The DIA Group has a total of 43 internal laboratories located in its warehouses in which a total of 743,616 internal analyses were carried out in 2016 under this control plan.
The DIA Group also collaborates with accredited external laboratories, where it carries out analyses supplementary to the internal controls. In 2016, 21,365 external analyses were conducted.
Furthermore, the warehouse and store auto-control systems define the health and hygiene conditions established by the DIA Group to ensure that product quality and safety is maintained throughout the supply chain.
To ensure the application of these standards, the Quality Control Department makes regular checks and periodic audits of warehouses and stores, where it supervises and assesses aspects such as order and cleanliness, expiry date management and the cold chain, among others.
In 2016, a total of 2,594 health and hygiene audits were conducted at DIA facilities (warehouses and stores).
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