8.3Strategic commitment to local suppliers

In its quest to get ever closer to its customers, DIA has strategically committed to local suppliers to help it reshape its range and customer proposition. At year-end 2015, over 86% of the company’s suppliers worldwide were local companies that supply its national divisions in each of its operating markets.

With this policy the company achieves a dual objective. On the one hand, it perfects its supply chain, locking in food quality and safety and reducing the pollution deriving from its transportation. On the other hand it contributes to economic development in its operating markets, in turn generating credibility in the eyes of local consumers.

As in prior years, the percentage of local suppliers in the overall mix was particularly significant in the company´s emerging markets. Indeed, in China, 100% of the company´s suppliers are national companies; in Argentina, national suppliers account for 97% of the total and in Brazil, 96%. In Spain and Portugal, these percentages are also a significant 88% and 56%, respectively.

As for total purchases by value, in Spain almost 94% were sourced from local suppliers, compared to 77% in Portugal, 100% in China and 99% in Brazil and Argentina.

BREAKDOWN OF PURCHASES FROM SPANISH SUPPLIERS BY REGION.