Responsible Sourcing

All raw materials used by Arca Continental to make its products are the highest quality and comply with applicable laws and regulations. Inputs used in our beverages and food products, including those of advance technology, have been duly authorized for safe consumption.

GUIDING PRINCIPLES AND RULES MANUAL FOR SUPPLIERS 

The Coca-Cola Guiding Principles for Suppliers, which establishes clear clauses for social responsibility applicable across our value chain, is included in hiring conditions. The objective is that every purchase implicitly denotes a respect for Human Rights, the rejection of child and forced labor, and an absence of any kind of discrimination, as well as other factors promoting human liberties.

100% of Arca Continental Mexico suppliers are currently required to comply with the Rules Manual, which establishes basic guidelines on the following issues: requirements for suppliers, registration data, Code of Ethics and Conduct Policies, Coca-Cola Guiding Principles, purchase orders, order delivery, payments to suppliers, conflicts of interest, doubt and conflict resolution, and the Transparency Mailbox.

100% of the suppliers of this country, as explained previously, must accept Arca Continental’s Code of Ethics and Conduct Policies, as well as the Coca-Cola Guiding Principles, in order to begin a commercial relationship with the company. These two documents set out explicitly that all companies must respect the freedom of association and the right to make collective agreements, and monitor and respect Human Rights. This is just one of the measures we take to jointly manage labor risks in the nation and avoid problems in Arca Continental’s value chain.

SUPPORTING AND EVALUATING SUPPLIERS 
Since 2015, we have conducted a satisfaction survey among our suppliers to measure the quality of our services, procedures and the institutional image. In addition, our plants assess their suppliers every three months as part of the Quality System of Coca-Cola Mexico and Arca Continental. Concepts evaluated include: operations and service, quality, administration, environmental protection, commercial operations and safety. It is important to note that, even without the evaluation, critical, urgent corrective actions are taken whenever needed, be it related to sourcing, internal users or suppliers.

In 2016, Arca Continental Peru began to standardize its procurement, implementing the processes followed in Mexico in its Purchase Management. The objective is to provide a more personalized service to suppliers and generate value for the company through specialized negotiations, both at the corporate and plant levels. The initiative included launching a Purchase Policy, implementing a new Purchase Management structure, redefining the team as Operating Negotiators and Purchasers, creating new working teams, relocating purchasers in each plant, and using a centralized Purchaser report system, eliminating the regional matrix system.

CORPORATE SOCIAL RESPONSIBILITY PROGRAM: USEM MODEL FOR SME's
USEMThe Social Responsibility Program set up by “Union Social de Empresarios de Mexico, A.C.” (USEM) in Nuevo Leon is applied every year in order to enhance SME productivity and economic value added.

The program also focuses on the human aspect of their operations by including concepts such as ethics, transparency, quality of life, and generating and distributing wealth.

 

 

 

 

 

 

 

 

ECUADORIAN ALLIANCE FOR ENTREPRENEURSHIP AND INNOVATION
Arca Continental and Coca Cola Ecuador have partnered in the Ecuadorian Alliance for Entrepreneurship and Innovation (AEI), a network of public, private and academic players who seek to promote entrepreneurship and innovation through such activities as training and support, providing access to financing and legal advice, market research and promotion. During the year, value chain retailers and small businesses received financial, material (coolers and shelving) and training support through this initiative.

LOCAL SUPPLIERS
One of our main objectives is to constantly increase the percentage of local materials in our production processes. Today, Arca Continental has more than 33,000 suppliers in total. In 2016, the percentage of input materials provided by local enterprises by region was as follows: Mexico 83.4%, Argentina 98.5%, Ecuador 69.7%, Peru 71.3%.