GRUPO HERDEZ
PROCUREMENT STRATEGY
GRUPO HERDEZ’ S SUPPLIER SELECTION PROCESS
In a recent in-depth interview with Procurement Magazine, Javier detailed Grupo Herdez’ s structured approach to supplier selection, with non-negotiable baseline requirements.
He highlighted that all potential suppliers must first sign a code of conduct:“ I cannot work with a supplier that hasn’ t signed. We want to make sure that any company working with Grupo Herdez has the basics covered.”
The code encompasses crucial aspects such as sustainability, ethics, community impact and environmental considerations. It establishes the fundamental expectations that Grupo Herdez has for its supplier relationships before discussions about price or terms even begin.
Beyond this foundation, supplier evaluation extends to financial stability,
operational capabilities and categoryspecific requirements, as Javier explains:“ Depending on the category, we’ ll prioritise other things. But I think the important thing is that we make sure that once we start our relationship with the supplier, at least we have this common philosophy.”
“ What I can do now is unlock a massive amount of suppliers early on and go through a qualification stage using an AI tool,” he adds.“ I can prescribe the questions, the documents required, the minimum requirements and it’ s going to keep on asking them those questions until they either fail or they answer all of them.
“ Once they answer all of them, that’ s when they’ re going to get a call from the category manager and start doing supplier developments and potential new supplier engagement.”
GRUPO HERDEZ
HEADQUARTERS: MEXICO CITY, MEXICO
NUMBER OF EMPLOYEES: 12,500 NUMBER OF COUNTRIES: 21
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