Sustainable Supply Chain
GRI 13.23.1, 13.23.2, 13.23.3, 13.23.4, 204-1, 308-1, 414-1
We manage our supply chain with a focus on responsible sourcing, promoting sustainable development and establishing fair, transparent and mutually beneficial relationships with suppliers and distributors.
We prioritize practices that strengthen our supply network, promoting trust and joint growth at every link in the chain.
We recognize the importance of local suppliers within our supply chain and their contribution to the economic development of the communities where we operate. While our sourcing decisions are based on criteria of quality, efficiency and competitiveness, we maintain a significant share of purchases from local suppliers in all our business units.
During 2024, procurement expenditure destined for local suppliers represented 18% of the total.
During 2024, procurement expenditure destined for local suppliers represented 18% of the total.
ESG Criteria of the Value Chain
We integrate ESG criteria into supply chain management, so that our suppliers operate in an ethical and responsible manner, aligned with industry best practices.
By having our value chain sign the Code of Conduct, we promote integrity in commercial relations in all our businesses. In addition, our national suppliers must adhere to an ESG Compliance Charter, where they commit to operate in accordance with current legislation and regulations, respect human rights, comply with environmental regulations and act under principles of integrity and transparency.
By having our value chain sign the Code of Conduct, we promote integrity in commercial relations in all our businesses. In addition, our national suppliers must adhere to an ESG Compliance Charter, where they commit to operate in accordance with current legislation and regulations, respect human rights, comply with environmental regulations and act under principles of integrity and transparency.
Consumer
Industrial
At the Transmissions business, 35% of new suppliers have signed the ESG Letter of Adherence and, as part of their commitment, they share internal documentation that supports their compliance with environmental, social and governance matters, strengthening trust and traceability in our supply chain.
Likewise, in the Aftermarket business, 120 new suppliers signed the ESG Letter of Adherence, reaffirming their alignment with KUO's principles of integrity.
Supply Chain Traceability (Consumer)
Our supply system combines our own production and purchases from third parties, a key strategy for balancing pork supply according to market conditions. Compliance is evaluated on a weekly, monthly and annual basis, ensuring that the required purchase volumes contribute to the business goals. In addition, the profit (marginal contribution) generated by purchases from third parties is analyzed, allowing the mix of products purchased and offered to be adjusted to optimize the profitability of the business.
The impacts are reflected both in business relations and in internal operations, helping to mitigate the price volatility that can affect our customers. To strengthen our offering in Maxicarne outlets, in addition to pork, we market other proteins such as chicken, beef and eggs, guaranteeing a greater diversity of products for the end consumer. The Commercial Department manages the purchase of live pigs, carcasses and parts, as well as other proteins for processing and/or commercialization, mainly in the retail segment. This function is governed by procurement policies aligned with the organization's commercial and administrative criteria.
The impacts are reflected both in business relations and in internal operations, helping to mitigate the price volatility that can affect our customers. To strengthen our offering in Maxicarne outlets, in addition to pork, we market other proteins such as chicken, beef and eggs, guaranteeing a greater diversity of products for the end consumer. The Commercial Department manages the purchase of live pigs, carcasses and parts, as well as other proteins for processing and/or commercialization, mainly in the retail segment. This function is governed by procurement policies aligned with the organization's commercial and administrative criteria.
Economic Inclusion of Farmers
As part of our strategy to strengthen the economic inclusion of local farmers, in 2024 we purchased more than 57,000 tons of sorghum from 10 local producers. This initiative promotes the development of the local market, improves farmers' revenues and fosters social cohesion in their communities.
Buying a significant volume from local farmers provides them with a stable source of revenue and an assured market, allowing them to better plan their growing cycles and their finances. In addition, guaranteeing a constant demand for the product encourages agricultural production and contributes to the economic stability of rural communities.
Buying a significant volume from local farmers provides them with a stable source of revenue and an assured market, allowing them to better plan their growing cycles and their finances. In addition, guaranteeing a constant demand for the product encourages agricultural production and contributes to the economic stability of rural communities.