Investment in Fixed Assets

In Grupo Herdez, we are experience in motion. We continually make investments to improve our systems, operate more efficiently and thus increase our profitability. In 2016, our most important investments were as follows:

The implementation of the Siebel Trade Promotion Management tool, for the traceability and optimization of promotions, which meant important savings on discounts during the year.

The operation of the Manufacturing Execution System tool, which has allowed us to increase Overall Equipment Effectiveness (OEE), the leading indicator for measuring productivity as it evaluates quality, performance and availability.

Furthermore, in 2016 we finished construction of the warehouse and the logistics and technological equipment for the Los Mochis Distribution Center, which will enable us to store 100% of the Sinaloa plants’ production, build crop inventories to leverage opportunities in the cost of raw materials, and serve customers and consumers in the Pacific and Northwest areas more efficiently.

We also acquired and installed equipment for the salsas line, to increase installed capacity in order to make production more efficient and cover demand, especially in the United States market.

Operating efficiencies

After the merging of the Los Mochis, Sinaloa plants in 2015, we improved the yield of the main raw materials, while the vegetables plant increased its production indices by more than 20%.

We continued our implementation of the World Class Manufacturing (WCM) system, begun in 2014; the tool improves competitiveness and brings world class standards within reach. In 2016, this system allowed us to reduce operating losses and achieve a positive impact on transformation cost.

Thus, our business management combines the experience and momentum of a company that evolves and rejuvenates every day.