Illustration 1: Supply center in Colima

Name: Technological Institute of Chihuahua II

Department: Earth Sciences.

Career: Architecture.

Subject: Construction Administration II

Topic: Supply Central

Prepared by: Manuel Ernesto Ornelas Campos

Reviewer: M.A. Jorge Carlos Martínez Laguna.

Date: September 2, 2020

INDEX
INDEX..............................................................................................................................................2
INDEX OF ILLUSTRATIONS........................................................................................................2
WHAT IS A PROJECT?...................................................................................................................4
SUMMARY......................................................................................................................................5
ABSTRACT......................................................................................................................................5
INTRODUCTION.............................................................................................................................6
1. PRESENTATION......................................................................................................................7
2. BACKGROUND.....................................................................................................................10
3. APPROACH OF THE STUDY...............................................................................................11
4. DESIGN AND GENERAL CONTENT OF THE STUDY.....................................................12
5. STUDY VALIDATION METHODOLOGY..........................................................................15
6. INTRODUCTION...................................................................................................................24
7. ELEMENTS OF THE STUDY...............................................................................................28
8. REVIEW OF THE APPLICABLE LEGAL FRAMEWORK.................................................50
9. DESIGN OF THE SUITABLE OPERATIONAL STRUCTURE FOR A SUPPLY CENTER IN MEXICO 66
10. DESIGN OF THE OPERATIONAL ELEMENTS IN THE SUPPLY CENTER...............78
11. BUSINESS PRACTICES AND DISPUTE RESOLUTION SYSTEMS............................98
12. RECOMMENDATIONS...................................................................................................123
13. CONCLUSION..................................................................................................................125
BIBLIOGRAPHY.........................................................................................................................126

INDEX OF ILLUSTRATIONS
INDEX..............................................................................................................................................2
INDEX OF ILLUSTRATIONS........................................................................................................2
WHAT IS A PROJECT?...................................................................................................................4
SUMMARY......................................................................................................................................5
ABSTRACT......................................................................................................................................5
INTRODUCTION.............................................................................................................................6
1. PRESENTATION......................................................................................................................7
2. BACKGROUND.....................................................................................................................10
3. APPROACH OF THE STUDY...............................................................................................11
4. DESIGN AND GENERAL CONTENT OF THE STUDY.....................................................12
5. STUDY VALIDATION METHODOLOGY..........................................................................15
6. INTRODUCTION...................................................................................................................24
7. ELEMENTS OF THE STUDY...............................................................................................28
8. REVIEW OF THE APPLICABLE LEGAL FRAMEWORK.................................................50
9. DESIGN OF THE SUITABLE OPERATIONAL STRUCTURE FOR A SUPPLY CENTER IN MEXICO 66
10. DESIGN OF THE OPERATIONAL ELEMENTS IN THE SUPPLY CENTER...............78
11. BUSINESS PRACTICES AND DISPUTE RESOLUTION SYSTEMS............................98
12. RECOMMENDATIONS...................................................................................................123
13. CONCLUSION..................................................................................................................125
BIBLIOGRAPHY.........................................................................................................................126
WHAT IS A PROJECT?
A project is a plan, which consists of a set of activities to be carried out in an articulated
manner with each other, in order to produce certain goods or services capable of
satisfying needs or solving problems, within the limits of a budget and a period of time.
given time.
For a project to be well designed and formulated, its purpose, objectives, beneficiaries,
products, activities, schedule, budget, etc. must be explained.

WHAT IS AN ARCHITECTURAL PROJECT?

Within the area of architecture and engineering, the Architectural Project is the set of
plans, specifications, schemes, details and perspectives that serve to carry out the
construction of any construction. This information is captured in print or digitally. This
makes it easier to understand the design and the technical data it contains. The
architectural project contains the distribution of all the spaces of a building, as well as the
finishes that make it up. Architectural plans are the elements that the architectural
designer uses to express his ideas, solutions and designs.

This group of plans includes the technical data of the structural and foundation design of
the future construction. The facility plans include the technical specifications of each
facility for its correct operation. The set of plans also includes all finishing specifications
that will be used in the final construction.

What is a project for me?

A project is the process by which planning is made to reach an end; This is planned with
the objective of achieving certain goals, so the given variables are analyzed, in order to
reach the desired result.

An architectural project is the process you go through to be able to plan an architectural

work. You go through it to know the options you have and thus be able to choose the
most suitable one for the project, thus achieving the objectives with success; Likewise,
the best options are analyzed and proposed, the work is managed and any future
difficulties are anticipated, keeping the work in optimal conditions. By keeping this in
mind and realizing what it means, we can generate a project or the plan for it, taking into
account all possible variables, thus achieving a more ideal result.
SUMMARY
The supply center is usually a space in which a service for buying and selling items is
offered, these are usually food; It is often cheaper than a supermarket or a chain of
stores, which is why many people from various social strata often gather there.

For the design of an architectural project of this type, all possible variables must be taken
into account; social strata, location, security, market, etc. Therefore, an exhaustive study
of sociology, economics and geography, as well as other disciplines, must be done. This
document compiles the most important data, which must be known in order to carry out
this type of architectural project.

ABSTRACT
The supply center is usually a space in which a service is offered to buy and sell items,
these are usually food; it is usually cheaper than a supermarket or a chain of stores,
which is why many people often gather, from different social strata.

For the design of an architectural project of this type, all possible variables must be taken
into account; social strata, location, security, market, etc. So, a comprehensive study of
sociology, economics, and geography, as well as other disciplines, should be done. This
document collects the most important data, which must be known in order to carry out
this type of architectural project.
INTRODUCTION
Throughout this supply center plan, a series of hypotheses have been considered that
show the scope of the project, which gives us an advantage that will help and allow the
analysis of the work. These directly affect the investment project, hence the importance
they acquire.

The project has been created for the implementation of a supply center in Colima,
allowing the analysis of everything that affects it. The aim is to analyze the situation that
entails the implementation of a work of this magnitude, so not only architectural issues
will be analyzed, but also economic, administrative, sociological issues, etc. A
documentary system will be used as a research methodology. On the other hand,
establishing the socioeconomic indicators of street vendors, clients, as well as the
socioeconomic level of external people will allow us to analyze the needs that are
required. Deepening the analysis of the urban impact it generates will allow us to obtain
the information for its correct execution, as well as the sociocultural impact it generates.
 1. PRESENTATION

Within the National Development Plan 2007-2012, the second guiding axis, “Competitive
and job-generating economy”, has as one of its objectives to enhance the productivity
and competitiveness of the Mexican economy to achieve sustained economic growth and
accelerate the creation of jobs, and that for this purpose the strategy is established to
design sectoral agendas for the competitiveness of economic sectors with high added
value and technological content and, of precursor sectors, as well as the reconversion of
traditional sectors, in order to generate better paid jobs; Therefore, the Competitiveness
Program in Logistics and Supply Centers (PROLOGYCA) was created.

The objective of PROLOGYCA is to promote the development of logistics in the Supply

Sector, through the granting of Support to projects that promote the creation,
modernization, efficiency, consolidation, competitiveness and sustainability of companies
in the Supply Sector, with regard to logistics and related services, favoring the generation
of jobs and attracting investment

For its part, the National Confederation of Merchants Groups in Supply Centers, AC
(CONACCA) is a National organization that brings together wholesalers from the
country's supply centers, which was founded in 1977. It currently brings together 78
wholesale centers, which have about etc. 90,000 commercial establishments, of which
19,000 specialize in food products.

Through this commercial network, 70% of the national agricultural production circulates,
serving retail distribution channels (Traditional) such as public markets, street markets,
markets on wheels, miscellaneous stores, neighborhood stores, commercial markets,
restaurants, hotels, industrial canteens. and 70% to self-service stores; in addition to
supplying an important part of the agribusiness. The economic value of the Mexican food
system is 786 billion pesos, employing more than 10 million people. Corresponding only
to the tasks of collection, marketing and distribution, around 350 billion pesos and
employing around 2 million 720 thousand people.
AVQ Consultoría Integral, S. c. is a Mexican company dedicated to providing consulting
and technical services to small, medium and large companies, mainly related to
agriculture and the food industry. With a strong understanding of the agri-food business
in Mexico, combined with the international adaptability and experience of its members,
the group has a solid position to design and implement high-quality, value-added
comprehensive solutions to meet client needs.

CONACCA, an organization interested in the development and competitiveness of the

sector and its members, raised the need to establish tools to help the operation of a key
link in its constitution, which are the administrators of supply centers. These
administrators are typically appointed by the boards of directors, with directive and
managerial positions and responsibilities, but in many cases, without the necessary
resources to face successful management, in accordance with the demands of their
directors, their members and the users. who go to supply centers, seeking quality
services and products.
Therefore, there is a need to carry out this study, carried out by AVQ Consultoría
Integral, SC, with resources from the PROLOGYCA program. This study aims to identify
the main areas of opportunity and the resources that supply center administrators can
have, with the purpose of generating significant improvements in their operation and
resulting in practical and low-cost tools, to face the significant growth of other commercial
formats, which little by little have gained ground on the commercial level, significantly
displacing supply centers, given the decrease in the perception of value by consumers,
and the factors that drive away food buyers, that will be discussed in this study.

Illustration 2: Supply center from

CDMX.
 2. BACKGROUND

Various studies, case analyzes and institutional reports have shown that, in recent years,
the food supply chain has become more competitive and more demanding not only of
quality products but also of services associated with these products, which respond to
the high quality demands of the market.

Likewise, these reports show how the sector that groups wholesale merchants in supply
centers has been left behind in the globalization process, and faces internal
organizational challenges, almost as much or more relevant than their external
deficiencies.

Illustration 3: Central de Abastos in San Antonio, Texas, with a free competitive

market
Although some plants have made significant improvements in their infrastructure and
service, these changes have occurred in recently created supply plants or those that
have been relocated. Today, the perception of value that an average consumer finds in
most of the main supply centers is low.

Although it remains the main food distribution channel, general merchandise merchants
have moved to innovative formats, establishing their own distribution centers in different
regions of the country, or anchoring themselves to the distribution centers of
supermarket chains, which It has generated flexibility and efficiency in their supply
processes to the retail sector.
Likewise, a large percentage of these supply centers – created mostly in the 70s with the
impetus of the Mexican Food System and located at that time in strategic positions that
could fulfill their function of supplying goods and food to the population of large urban
centers – have been absorbed by the urban sprawl, which consequently generates
problems of traffic, security, image and positioning in the consumer, who is increasingly
attracted by supermarket chains and convenience stores that with greater agility,
efficiency, quality of product and service and convenience, are more attractive to the
average consumer.

This is just one example of the type of challenges that the administrator of a supply
center faces. In this position and in this person, falls most of the responsibility for the
operation of a supply center, and for maintaining the operating conditions of the
administration in power. The position and position has sometimes been relegated to an
operational manager, when in reality due to the professional profile, experience and
ability to observe daily problems from a different perspective than that of a merchant, he
can be more creative when it comes to to find practical and efficient solutions, with a
high-level management approach.

But that requires that the administrator of a supply center have a specific profile. Most
supply center administrators are professionals in the accounting or business
administration area, but it is important to know that the main challenges to face are
related to the issues of logistics and traffic, security, food regulations and business
organization.

This study aims to provide a fundamental package of resources within the reach of a
supply center administrator, to address the most pressing internal and external needs,
with practical and efficient solutions. The nature of the basic elements essential for the
administrative, technical and operational management of supply centers will be
reviewed, with the intention of creating a framework for development and
competitiveness of the food supply sector.

3. APPROACH OF THE STUDY

The National Confederation of Grocery Groups of Supply Centers, AC, (CONACCA)

requested the preparation of a study that would serve as a basis for the development of
a management scheme for supply centers in Mexico. Based on the results of the study,
the generation of a supply center management manual and the development of a training
workshop for supply center administrators in the country are required.

To this end, the review, design and presentation of various management tools for supply
center administrators was thought about, in aspects such as:

• Good practices
• Legal framework
• Administration
• Operation
• Logistics
• Commercialization
• Dispute resolution

For this, a basic script was considered that identified the following themes:

• Selection of Good Management Practices

• Review of the Applicable Legal Framework
• Design of the Ideal Operational Structure
• Design of Operating Elements
• Commercial Practices and Dispute Resolution System
• General recommendations

Additionally, the execution of a practical workshop for supply center administrators is

considered, based on the identified topic.
4. DESIGN AND GENERAL CONTENT OF THE STUDY

In order to carry out the study, it is important to establish a frame of reference on its
content and scope. The topics to be discussed are described below:

Selection of good management practices. This topic refers to the selection of good
operational and business management practices focused on strengthening and
energizing Supply Centers.

The elements to consider in this phase are:

 • Identification of best practices in Supply Center management
• Analysis of best practices (Physical and functional aspects, Waste management,
Image, Safety, Technological Innovation, Optimal sizing, Signage, Services)
• Review of the applicable legal framework

This phase of the project will allow the collection and systematization of information on
the applicable legal framework from the real estate, commercial, fiscal and food
management point of view.

To achieve the objectives of this phase, the following will be done:

• Identify and characterize the most common legal elements that affect supply
centers and the companies that participate in these operations.
• Review and systematize national and international legislation applicable to supply
centers and companies that operate in their niches.
• Identify successful cases of commercial operation in this and other countries in
the matter, when they exist.
• Design of the ideal operational structure for a supply center in Mexico

This module involves the documentation of the minimum infrastructure necessary to

provide marketing services in supply centers in Mexico, and the identification of
characteristics of professionals specializing in the commercial sectors that cover these
operations.

The content of this phase will be aimed at having the following:

• Aspects administrative
• Aspects prosecutors
• Aspects operational
• Aspects legal
• Aspects logistic
• Aspects commercial
• Foreign trade aspects (when applicable)
• Food processing aspects (when applicable)
• Design of the operational elements to be considered in this reference framework
(administration, operation, logistics and marketing)
• A guide will be designed of key elements in the administration of already
established businesses, and a guide to good commercial practices with new
clients or new operating schemes.

The content will take into account the aspects of:

• Organization of human, material and financial resources for the effective and
efficient achievement of organizational objectives.
• Relationship of the organization with its external environment and responses to
 the needs of society.
• Performance of certain specific functions such as determining objectives,
planning, allocating resources, implementing, etc.
• Performance of various interpersonal, information and decision-making roles
within the company.
• Commercial practices and dispute resolution system.
• The review of current commercial practices will have the objective of creating
spaces for reflection, discussion and exchange of experiences on the fundamental
issues that must be taken into account in the Supply Centers.

The objective of this phase focuses on:

• The problems faced by business managers in the supply center sector in Mexico
to resolve conflicts arising from commercial relationships with their clients and
with the market in general.
• Document and report on competitive and efficient commercial practices between
different commercial agents and their solution schemes under alternative justice.
• Support the interpretation and enrichment of commercial practices, as well as the
precision of the commercial and operational conditions on which they must
operate.

• .1. PRACTICAL WORKSHOP

The delivery of a practical workshop to Administrators of Supply Plants seeks for

administrators, in an event organized by CONACCA and with the participation of AVQ, to
become familiar with the results of the study, provide information that allows diagnosing
the current progress in each of these topics by supply center, and whose results can be
put into practice in the supply centers under their charge.
 5. STUDY VALIDATION METHODOLOGY

The National Confederation of Grocery Center Merchants Groups, AC, (CONACCA)

established the need to carry out a diagnosis for the validation of the management
scheme for grocery centers in Mexico, with the purpose of raising the level of
management and administrative performance and operation that exists in these centers,
which allows improving the competitiveness of the sector in the framework of current
globalized trade.

The need to carry out this diagnosis of the operational and administrative conditions of
various supply centers in the country was established, in such a way that it was validated
with information provided with the administrators of said centers, the degree of
development of policies and actions that have an impact in the competitiveness of the
national supply sector.

Illustration 4: Free market and competition for the suppliers of the supply center, as well as free choice for customers.

5.1. PARTICIPATING ORGANIZATIONS

Administrators from the following supply centers and related organizations will participate
in this exercise:

• Administrator of the Agricultural Shopping Center of Aguascalientes, AC

• Association of Merchants of the Megabasto Central, A. c. (Zamora, Mich)
• Association of Established Fruit and Vegetable Merchants of San Luis Potosí,
SLP, AC
• Association of Merchants and Producers of Fruits, Legumes and Meat of Irapuato
• Condominium Association of the Central de Abasto de Querétaro, AC
• Condominium Association of the Central de Abastos de Gómez Palacio, Durango,
A.C.

• Acapulco Supply Center, Caudillo del Sur "Emiliano Zapata"

• Supply Center of the Cd. From Mexico, A. c.
• Tijuana Supply Central CEDA, AC
• Supply Central of Tultitlán, AC
• Cd Supply Center. Juarez.
• Central De Abastos de Culiacán, A. c.
• Central De Abastos Y Servicios Monterrey, S. TO. From C. v.
• Central of Winemakers and Merchants of the Central de Abastos of Tuxtla, A. c.
• United Merchants of the Southern Supply Central of Huasteca, AC
• Development CEDAE, AC
• Group of Friends of the Food Market, A. c. (Guadalajara)
• Introducers and Distributors of Abasto de Tijuana, AC
• La Yarda Grande Food Market in Los Mochis, AC
• Estrella Food Market in Condominio, AC (Monterrey)
• Union of Winemakers and Merchants of the Central De Abastos of Tuxtla, A. c.
• Union of Winemakers and Merchants of the Central De Abastos of Villahermosa,
A. c.
• Union of Merchants of Chicoloapan
• Union of Fruit and Vegetable Merchants, Warehouse Section of the Supply
Market of the City of Oaxaca, AC
• Union of Merchants ofthe central of Supply of Cancun, AC
• Union of Merchants ofthe central of Supply of Emiliano Zapata, Morelos AC
• Union of Merchants ofthe central from Abastos de León AC
• Union Of MerchantsFrom the Central Supply De Tepic, A. c.
• Union of Merchants of the Supply Center of Aguascalientes, AC
• Union of Merchants of the Supply Center of Ciudad Guzmán, A. c.
• Union of Merchants of the Fresnillo Supply Center, AC
• Union of Merchants of the La Laguna Food Market, AC
• Union of Merchants of the Guadalajara Food Market, A. c.
 • Union of Merchants and Introducers of Fruits, Legumes, Eggs and Seeds of the
Markets of Tapachula, Chis. San Juan Square
• Union of Merchants in Fruits, Vegetables, Groceries and Commercial Premises of
the Central de Abasto of Mexico City, A. c.
• Union of Merchants in Fruits, Legumes, Groceries, Cereals and Annexes Central
de Abasto De Celaya, Gto., A. c.
• Union of Merchants José María Morelos y Pavón de Mexicali, AC
• Union of Merchants and Producers of the Central de Abastos de Chihuahua, AC

• Union of Merchants, Producers and Owners of Abasto Tecámac, SA de CV

• Union of Merchants, Producers, and Owners of the Supply Center of Ecatepec, A.

c.
• Union of Avocado Packers of Peribán, A. c.
• Union of Introducers and Sellers of Fruits and Vegetables of Hermosillo
(Francisco I Market. Log)
• Union of Tenants of the Central De Abastos de Reynosa, A. c.
• General Union of Fruit and Vegetable Packers of the State of Colima, AC

• Mutualist Union of Introducers and Producers of Fruits, Legumes and Cereals,

Mercado de Abasto José
• Ma. Morelos, SC
• National Union of Traders, Importers and Exporters of Agricultural Products, AC
• National Union of Fish and Seafood Introducers, AC
5.2. REFERENCE STANDARD

Minimum qualification criteria were established on a series of parameters that will allow
defining a basic operating framework, with a focus on solving the most pressing needs to
generate competitiveness factors in the face of globalization and the arrival of new
formats that compete directly with the functions developed by supply centers in Mexico.

For this, a questionnaire was designed with key questions on each topic, referenced to a
rating system of the evaluated supply centers and to establish a comparison mechanism,
establishing strata or comparison parameters.

The catalog of questions is based on the most relevant topics contained in the structure
of the Study for the Development of a Management Scheme for Supply Centers in
Mexico.

5.2.1.Module I. Selection of good practices in supply center management.

This phase aims to identify and select good practices focused on strengthening and
energizing Supply Centers.

Criteria to size:

What is your office's main responsibility regarding market administration?

What are your functions in market administration?

What good practice programs have you implemented in your supply center?

Has the supply center prepared a policy statement that indicates the commitment to
continuous improvement?

Has the supply center prepared specific objectives in quality and service?

What are your functions in market administration?

What role do the members of the board of directors or board of directors of your plant
play?

Does the supply center have quality and service policies and do they comply with official
regulations?

Does the supply center have quality and service policies that meet user expectations?

Has the supply center prepared specific objectives to meet the needs of members and
associates?

5.2.2. Module II. Review of the applicable legal framework

This phase of the project will allow the collection and systematization of information on
the applicable legal framework from the real estate, commercial, fiscal and food
management point of view.
Criteria to size:

Does the supply center organizational chart describe who has responsibilities for quality
and service and what those responsibilities are?

Has the supply center allocated adequate resources for the implementation of a quality
and service management system?

Have your training needs been defined and documented to be able to carry out your
duties?

Have reviews been made of compliance with the legal framework regarding public
health?

Do you have a company policy manual that outlines the organization's methods for
meeting its quality and service objectives?

Does your manual include the methods that will be applied to comply with quality and
service policies?

Who establishes the criteria for the design and construction of infrastructure?

Proportionally, how much is invested in preventive maintenance and how much in

corrective maintenance?

When was the last time the board of directors participated in the evaluation of the quality
and service system?

Is the legal and tax documentation up to date?

5.2.3. Module III. Design of the ideal operational structure for supply centers.
This module involves the documentation of the infrastructure necessary to provide
marketing services in supply centers in Mexico, and the identification of characteristics of
professionals specializing in the commercial sectors that cover these operations.

Criteria to size:
Is the physical and organizational infrastructure you have adequate?

What are the most relevant elements in your supply center?

What percentage of your budget do you allocate to office staff?

How many members does your board of directors or board of directors have?

How many managers or assistant managers report to you in the administration?

What is the average educational level of managers or assistant managers?

Do you have external advisors in the tax, accounting and legal area?

Do you have advisors in the commercial, logistics and traffic areas?

Do you carry out foreign trade or international relations activities?

Do you have social or environmental responsibility projects?

5.2.4. Module IV. Design of the operational elements to be considered in this

reference framework (administration, operation, logistics and marketing).

A guide will be designed of key elements in the administration of already established

businesses, and a guide to good commercial practices with new clients or new operating
schemes.

Criteria to size:

Do you have planning tools?

How much time do you spend planning your activities?

Who participates in the planning process at your supply center?

What is the main teaching of planning?

What percentage of costs have been saved thanks to planning?

Do you have strategic planning studies for your plant?

Have you received training courses on strategic planning?

Have you participated in the development of strategic plans in your supply center?

How many training courses do you receive per year?

How long have you been in charge of the administration of the supply center?

5.2.5. Module V. Commercial practices and dispute resolution systems Criteria to

be dimensioned.

The review of current commercial practices will have the objective of creating spaces for
reflection, discussion and exchange of experiences on the fundamental issues that must
be taken into account in the Supply Centers.

Have you identified the most important barriers to improving your operation?

Have you identified the most important variables that could be prevented with mediation
and arbitration?

Have you considered how to avoid going to court for preventable issues?

Have all possible legal risks been analyzed?

Do you have a plan to adapt to changing market conditions?

Do you have possible solutions contemplated for failures that may arise in your
contingency plans?

Have you ever formed a conciliation committee?

Do you have access to a commercial measurement and arbitration specialist?

Do you know of cases that have been resolved through mediation and commercial
arbitration?

Have you heard of mediation and commercial arbitration?

5.3. GENERAL METHODOLOGY

Considering the objectives and scope of the project for the collection and systematization
of the base information to validate the study, the methodology established for carrying
out the diagnosis seeks:

The measurement of the current state of the elements that make up the operational-
administrative system in the facilities of the evaluated supply centers.

The stratification of the degree of progress in each subject evaluated, and the
identification of challenges and areas of opportunity for improvement

The participation of administrators or those in charge of the administration – operation of

the supply centers, or the application of their policies and regulations, as well as the
provision of services to partners and users.

The comparison and analysis of results to validate the proposals made in the reference
study and generate the final recommendations or monitoring and improvement.

The data collected through the surveys will be processed and analyzed by AVQ
Consultoría Integral, in order to:

Quantify the degree of progress that the supply centers have in the evaluated subjects.

Stratify supply centers based on this degree of progress

In total, 40 supply centers will participate in the diagnosis, from 16 entities in the country,
which is a representative sample of the large supply centers with regional coverage,
those medium-sized supply centers with regional coverage and the small supply centers.
local.

Methodologically, a base score is established (which would be equivalent to 100%

compliance with the aspects indicated by the global standard in the points evaluated).
This base score is compared with the one obtained for each of the areas. The
qualification criteria are as follows:

• Responses appropriate to the criterion (global standard): 1 point

• Approximate answers to the criterion: 2 points
• Answers that do not satisfy the criterion: 3 points
 • Responses that denote absence or non-compliance with the evaluated topic 4
points

The sum of the points forms the qualification for each of the areas evaluated, and the
results are grouped in the sections indicated in point 1.

In order to present the data in graphic form, a distribution graph is used, which indicates:
a reference, or standard towards which the benchmarking (reference point) of the supply
center is intended to be oriented.

A level called “Threshold”, which corresponds to the criterion of compliance with the
benchmarking of the supply center in relation to the evaluated standard.

An average level of the results obtained by the areas evaluated in the graph. It is
important to note that being above or below the threshold is not indicative of failure or
deficiencies. It is only a comparison with a pre-established level of a standard.

In each graph, an attempt is made to present the results of the evaluated supply centers,
grouped by each type of information evaluated.

The results obtained will be presented in a separate report.

 6. INTRODUCTION

The administrator of supply centers cannot be limited to a passive activity with an

elementary professional profile. In times of globalization and a constant and growing fight
for the purchasing preference of consumers and large markets, a new profile of high-
level supply center administrator must be proposed, with aggressiveness and proactivity
in their daily tasks.

Among the scope that is intended to be covered with this study, it seeks to define as an
administrator of supply centers, with the different characteristics that can be generated
from their position in a fundamental component of the food supply chain, since in their
trench Administrative aspects must be faced that influence the lives of merchants, users
and clients and the ability of supply centers to fulfill their economic, social and
commercial function.

A long time has passed since trade liberalization and the impact of business information
technologies, and since then other sectors have taken advantage of these changes in
accordance with the context in which we live. But it does not seem the same with the
Supply Centrals. It is recognized that there are enough aspects that prevent adequate
development. However, many of these aspects fall within the scope of responsibility of
the supply center administrator, who must be prepared and updated on these issues.

Typically, a basic profile of the supply center administrator is identified. This profile is not
always the most appropriate, since sometimes it depends on other types of factors, such
as proximity to the current board of directors. Below are illustrated some contrasting
aspects in the performance of this function, and the desirable elements of its operation in
the current globalized environment.

Based on these essential aspects, what is ideally sought is a university professional

prepared in a comprehensive manner, with an analytical, reflective, critical, creative,
guiding mentality and with a promotional capacity that allows him to have an active and
leading participation in the development of the Wholesale Market.

It is also sought to be complemented by the ability to interpret the cultural, historical,

economic, social and political structures that surround their immediate environment to
rationally capture their reality, adopting an impartial and transparent position in the face
of these various problems, providing alternative solutions and actively participating in the
development of these alternatives.

And all this due to the need to understand the idiosyncrasy that surrounds the supply
centers and their environment, in which all social, economic and cultural strata come
together. From large companies to micro entrepreneurs; from the richest deciles of the
country to poverty and extreme marginalization and from the most prepared
professionals to the illiterate.

This sui generis mix is what requires the administrator to seek specialization in systems
management, but given that this training process is not something that is obtained
overnight, it is necessary to complement it with information on the available alternatives,
being able to promote and develop various types of organizations, from those with a
micro to large company focus, consolidating as the agent of change and innovation by
having acquired skills to perceive, diagnose and solve common and unexpected
situations.

6.1. AIM

Contribute to developing and updating the concepts of professional administrator in

supply centers, in response to the existing problems from a comprehensive point of view
considering legislation, operation, logistics, commerce and market practices, in order to
promote figure of "competent professional administrator".

6.2. CURRENT SITUATION

Various studies show that supply centers, even though they constitute the heart of the
food supply chain since they contain the capacity to provide general merchandise and
food to the main population centers, have lost competitiveness rapidly, in the face of
different commercial initiatives that have led new formats, mainly shopping centers,
supermarket chains and convenience store chains.

Likewise, the obsolescence of their facilities has created logistics and traffic problems,
manifesting in high losses, high operating costs, inefficient commercial practices, low
business culture, and absence of technology for, among others, which has been
reducing their participation in the market.

On the other hand, and in contrast to the previous situation, the self-service commercial
formats and supermarkets, which in principle are not competitors with the supply center,
since those are oriented towards retail sales, have been expanding their participation in
the market. However, in the case of fruit and vegetable products, the influence of self-
service stores and supermarkets is not as significant as in groceries.

There is a discrepancy between the various supply centers and the specialists who have
studied these aspects, regarding the origin of this problem. There are certainly problems
of infrastructure, location, dimensioning, urban pressure, but certain analyzes fall within
the competence of the supply center administrator and his expertise to meet the most
pressing needs of merchants, users, clients and the environment.

This is combined with the economic and political-social situation that exists within the
plants themselves, with very few resources, with divided administrations and without
professional talent, it is necessary for the administrator to put his creativity at the service
of his tasks, identifying the issues that it is responsible for solving at the level of the
power plants and developing administrative knowledge as a key tool for generating
competitiveness.

The lack of an adequate administrator, then, converges with the problem detected, which
worsens if competent professional administrators cannot be counted on. Naturally,
management positions are not reserved for any profession; However, what is observed is
symptomatic when even when there are professional administrators of supply centers,
they or their initiatives are not being trained or taken into account adequately, which
allows them to maintain, and sometimes increase their disadvantages with respect to
their business competitors.

In general, they are really prepared as technicians and not, as well as professionals; In
the best of cases, they are trained "to manage", but not to renew, expand and deepen
administrative knowledge, nor to generate innovations with respect to their field of study
and work. This is reflected in the fact that people from different specialties participated
and not administrators.
 6.3. FRAMEWORK

The administrators of the supply centers do not participate in the activities of marketing
goods or providing services themselves, although there are some exceptions. Their
essential function is to be facilitators of the services that are required for their proper
functioning, meet recurring or eventual demands for attention in the event of
contingencies, and coordinate efforts to identify resources that allow improvements.
Likewise, they are the point of contact with local, state and federal authorities on various
issues, project managers and sometimes, spokespersons before the media and
information. In certain plants that are dependent on state governments (as is the case of
Mexico City), the administrators are public officials or are appointed by the state or
municipal authority in power.

Therefore, there is a certain level of rotation, which prevents the continuity of the
programs that supply center administrators can establish, since there are no documents,
guidelines, plans or management manuals that establish the minimum elements for this. .

Therefore, the solution to the problems of the supply centers largely requires a
competent professional administrator to guide the active participation of the acting board
of directors, the identification of the aspects that reduce the competitiveness of the
operations of their partners or merchants, of the aspects that facilitate the arrival of more
institutional buyers or consumers, and that their efforts are documented in manuals,
which can be given continuity and kept within the objectives and goals that the centers
themselves set. pose.

To achieve this, competent professional administrators are required to complete their

training and experience with legal, operational, and logistical elements that allow
boosting the competitiveness of the Supply Centers.
 7. ELEMENTS OF THE STUDY
7.1. SELECTION OF GOOD PRACTICES IN SUPPLY CENTER MANAGEMENT.

In general, the concept of “good practices” refers to any experience that is guided by
principles, objectives and appropriate procedures or advisable guidelines, which are
adapted to a certain normative perspective or a generally accepted parameter, as well as
any experience that has yielded positive results, demonstrating its effectiveness and
usefulness in a specific context.

The concept of good practices has been used in a wide variety of contexts to refer to
optimal ways of executing a process, which can serve as a model for other
organizations, similar or not. Good practices allow us to learn from the experiences and
learning of others, and apply them more broadly and/or in other contexts. They can
promote new ideas or suggest adaptations and provide guidance on the most effective
way to make the various impacts of an intervention visible in communities.

The search for good practices is directly related to the current approaches on the quality
and efficiency criteria of social interventions, which cover not only management and
procedures, but fundamentally the satisfaction of the needs of the affected people or
companies and the improvement of your problem.

Systematizing the criteria common to all the reviewed evaluations, we could say that a
good practice would be a program, project or intervention that has at least some of the
following characteristics:

They respond to an identified need, develop evidence-based strategies, and are

innovative in their application. The human resources that implement the initiative are
qualified and specialized. They propose a monitoring system for the processes and
results of the actions undertaken at the same time. that allow feedback and reorientation
of actions, have a broad base of participation, especially of the beneficiaries, incorporate
sustainability strategies for the initiative, promoting its institutionalization;

Systematize processes and results;

In some way it encourages the replication of the experience. Therefore, the importance
of establishing common criteria for the detection and selection of good practices.
In supply centers, there are many problems identified, but only some really cause
damage to the image, operation, competitiveness and sustainability, so this study will
focus on reviewing those aspects where good practices are tools. key to your solution.
Identification of good practices in Supply Center management.

A diagnosis carried out among 23 supply centers in the country has identified the main
problems identified in the national supply centers, namely:

• Congestion of vehicles, goods and people

• Garbage and its accumulation
• Disorder
• Insecurity of people and their property
• Lack of communication tools
• Reduced traffic spaces
• Lack of signs
• Lack of services

These aspects are quite negative in the daily operation of a supply center, considering
that these aspects have a direct impact on:

• The image of the supply centers

• The perception of security
• The possibility of increasing the customer base
• Attraction of the general public
Therefore, the good practices that must be implemented must have an impact aimed at
improving, at least, the following aspects:

• Quality of service provided to clients.

• Management in commercial establishments.
• Image of commercial establishments before their customers.
• Professionalize the management of commercial establishments.
• Guarantee customers the quality of service they will receive.
• Differentiate commercial establishments that adopt service quality standards.

Good practices will therefore be a coherent set of actions that have provided a good or
excellent service in a given context and that are expected to provide similar results in
similar contexts.

These good practices must consistently include solutions, methods, procedures and
practices that are functional and sustainable. If not, the impact on the workload of the
supply center administration can be negative, by bringing more work without creating
practical solutions.

Sustainability lies in the fact that the good practices adopted must be accepted by the
majority of merchants, generate an improvement in operating conditions, reducing costs
and expenses, and, where possible, contribute to the generation of greater business
activity. for merchants.

In this way, the functionality of good practices must be ensured through a series of
recommendations that are basic in the establishment of these proposals, especially
when what is sought is for the recommendations to be adopted by the board of directors
in turn and , above all, that they are accepted and adopted by the merchants who
operate in the supply center in question.

Thus, good practices should be:

• Formalized in organizational policies

• Established in scheduled activities

• Identified by priority
• Consultated and preferably agreed upon with trading partners, users and related
agents (services, businesses, unions)
• Evaluated and subject to monitoring

The good practices identified to counteract the negative aspects of the operation of a
supply center in the current situation are the most basic ones that must be supported,
documented and put into practice by the immediate beneficiaries (merchant partners)
and promoted and led by the administration of the supply center. Among these practices
are:

• The review of the physical and functional aspects of the supply center
• Establishing waste management programs
 • The boost of the image of the supply center
• Attention to the issue of security
• The adoption of available technological innovation
• The optimal dimensioning for an adequate flow of goods and people
• Adoption of signage programs
• The establishment of services aimed at merchants and users in general
• Analysis of good practices

Below is a description of the selected good practices and their review, seeking to
maintain the focus on strengthening and energizing the Supply Centers.

7.2. PHYSICAL AND FUNCTIONAL ASPECTS

Since 1997, the National Institute of Public Administration presented its “Standards for
the Establishment of Supply Centers”, which were grouped into three fundamental
elements:

7.2.1.Norms for integration into the urban context.

7.2.2.Rules for its location and installation
7.2.3.The basic areas for its operation.
The first speak of the adequacy that these commercial units should take into account
with respect to the conditions and characteristics of the urban development of the
municipality in which they are located.

For their part, the Standards for their Location and Installation established population
criteria and due to the distance to consumption centers, the need to carry out risk
analysis of the areas where they would be established and aspects that could interfere
with their proper operation.

Finally, the Basic Areas for Operation considered the need for – properly planned – the
supply centers to have:

7.2.4. Maneuvering and parking area for cargo vehicles.

7.2.5. Platforms for loading and unloading products.
7.2.6. Platforms for pedestrian circulation.
7.2.7. Warehouses for handling and storage of products.
 7.2.8. Reserve area for the expansion of the unit.
7.2.9. Support services, among which scales for weighing products, ripening
rooms and general refrigerators stand out.
7.2.10. Complementary services, which include: banks, telegraph and postal
service, fuel supply service, transportation service, distribution of agricultural
inputs, etc.

However, with the passage of time, and based on population growth and the increase in
commercial activity, these criteria were little observed from the perspective of future
growth. Although at the time they were considered the Latin American model for the
distribution of goods and food, with the passage of time the problem of functional design
of supply centers has been demonstrated.

There are enough examples: very narrow hallways, the diversity of heights, limited
storage space, lack of coordination in the times of reception and departure of shipments
and customer service. Additionally, due to ignorance or lack of application of regulations,
many of the corridors, platforms and warehouses have distorted their main use,
becoming machinery warehouses, private parking lots, maintenance workshops, facilities
for activities other than wholesale trade and the consequent overcrowding and disorder.

In many forums the need to start from scratch has been raised. Build new supply centers
that respond to the new needs of commerce with clearer specifications and guidelines,
and with a focus on growth and diversification of services focused on the future.
However, there are also studies that indicate the negative impact of relocation, especially
on retail sales, since new projects necessarily have to be outside urban centers,
sometimes far from public transportation routes, and with the consequent negative
impact on direct attention to the final consumer or the medium wholesale buyer, who is
forced to have to resort to new commercial formats, especially the price club format, to
be able to satisfy their needs that are usually covered. going to the supply center on
weekends.

Therefore, although it is recognized that there are spaces that have been saturated, the
relocation or construction of new supply centers without the vision of very long-term
growth (25 years or more) would be temporary palliatives, which can only be addressed.
they would transfer the problems once they were occupied by new commercial activities.
An additional factor to consider is the financing of these new projects, the possibility of
obtaining credits for their execution and the willingness of governments to participate
with economic or in-kind contributions, above all, the land where these new projects are
developed. An example of this is the investments of $145 million pesos in a supply
center for a medium-sized city (Mexicali), up to $280 million pesos planned for a city with
more than one million inhabitants (Querétaro).

The pressure generated by the new formats, their correct planning, their strategic
location, the quality of their services and their diversity and flexibility mean that supply
centers have to rethink in the short term strategies that make their commercial activity
efficient, without hindering the habits of attention to buyers and consumers.

To do this, certain practices established by more competitive formats must be resumed,

such as: Good practices that benefit the physical and functional aspects of supply
centers at a low cost.

Delivery – receipt of goods at defined times that do not hinder the traffic of the general
public (typically between 4:00 p.m. and 6:00 a.m.) and traffic management. Particularly
the entry and exit routes of long box or heavy-duty trucks. Establishment of directions on
the streets. Release of merchandise loading platforms. Through the proper use of the
spaces intended for the merchant, or the use of less saturated adjacent warehouses.
Separation of parking spaces dedicated to the general public against Generate
recommendations to users on the appropriate days and times for their attendance at the
center. Good practices that benefit the physical and functional aspects of supply centers
with investment. Renovation of hallways and platforms. Painting of walls and areas
visible to users. Identification of areas of attention to small and medium buyers. The
identification of exclusive areas for retail sale. Logistics for the organization Remodeling
is not a guarantee of efficiency

7.2.1. Waste management

Cleanliness being one of the highest aspects valued by consumers, buyers and the
general public, supply markets are, in many cases, associated with dirt and lack of
hygiene. Cleaning all common use spaces (hallways, platforms, streets, parking lots,
among others) is an essential factor to improve the shopping experience in a supply
center.

This is one of the key points in the management of supply centers since its neglect leads
to other major problems, and in many cases, especially in supply centers with more than
10 years of operation, it is a noticeably neglected aspect. .

Supply centers are large generators of waste, particularly organic, which, if well
managed, has great potential to promote its minimization and recycling. This requires a
series of appropriate equipment and a more active role of the administration of the
supply center in terms of waste.

Not all supply centers in Mexico have incorporated practices for separating organic
matter from the rest of the garbage, which is what is generated in the greatest quantity.
This makes its management difficult, since the contamination of recyclable garbage with
organic matter does not make it attractive for collection.

An important part of the administrator's job is the organization and management of

garbage collection. Typically this service is organized in conjunction with the municipal
authority, since the latter are responsible for garbage collection and concessions are
granted for this.

However, there are strategies to complement the work of the authority, since preventive
work can be carried out to avoid the generation of garbage and the management of
products that will not enter the supply chain, and thereby allow their proper disposal.
disposal before they enter the polluting organic waste process.
Illustration 5: Better management of local waste is sought.

In preventive activities, there is the disposal of products that no longer meet the quality
conditions to be sold fresh. Normally these can be channeled through food banks, non-
profit institutions dedicated to the collection of food suitable for human consumption but
that will no longer be integrated into the supply chain and that will serve to feed
marginalized sectors of the population. the population.

Another preventive aspect is to allocate mature and overripe products to companies that
are dedicated to food processing, and that require as raw materials, products in a
complete state of ripening or overripe due to aspects of color and sugar content.

Both aspects are beneficial for merchants and allow them to obtain not only sales, but
also tax benefits, since food banks can provide such receipts.

Once garbage has been generated, its proper storage is important. Organic garbage,
especially due to its decomposition process, generates aromas, liquids and ferments,
which in turn attract harmful fauna. Therefore, their placement in containers designed to
contain leaks, elevated from the floor and separated from the walls, makes the
containment of organic waste easier and prevents the accumulation of detritus and the
formation of nests or protection areas for harmful fauna. The more exposed the harmful
fauna is, the more difficult it is for its presence or accumulation.
The overaccumulation of waste in containers or garbage storage areas is achieved by
managing with the concessionaire companies or with the municipality, the increase in the
frequency of collection. It must be remembered that garbage collection represents a
benefit for collection companies, so it is an effort that must be made.

Finally, there is a practice that is not very appropriate, but that, well managed, can result
in positive aspects to improve the image of the market. It refers to the collection of
garbage by organized individuals. This is normally not organized and occurs in different
ways and frequencies, depending on the needs of the collectors. The participation of the
supply center administrator can help organize these people and set collection schedules
for them, so that they follow organizing practices for the materials they collect, so that
they do not hinder the traffic of vehicles, goods and people.

Additionally, information campaigns aimed at merchants can be established. The main

actions that can be implemented are the separation of garbage from each establishment;
the use of containers with lids; avoiding the presence of scavengers, and organizing for
cleaning, pest control and elimination of accumulated waste in the warehouses (useless
boxes, damaged packaging materials and disposal of garbage in the indicated
containers).

An additional practice is management with companies dedicated to the production of

composts or organic fertilizers. These companies demand a large amount of organic
matter, which they can find properly segregated in supply centers. In most cases, organic
waste does not receive any treatment and its final destination is garbage deposits. Most
of this waste is made up of easily biodegradable organic matter, which could be trashed
and used by aerobic or anaerobic methods by compost or organic fertilizer companies.

Some success stories in waste management are those presented in the supply center in
Mexico City and in Bogotá, Colombia.

For example, in Mexico City, the supply center is the largest supply center in our country,
between 720 and 875 tons of organic solid waste are generated daily, of which about 80
percent is waste from edible products. , the rest is packaging waste (paper, cardboard,
wood and various types of plastics).
In addition to having a variation in the quantities of waste generated over time, there is
also a variation in their composition, which is normal because horticultural products have
different production periods and, therefore, marketing in Ceda.

In the stages of distribution, collection and sale of fresh foods, high percentages of waste
can be generated due to different causes such as diseases and pests, physiological
deterioration and mechanical damage due to poor harvest management or even the
generation of waste can be seen. increased by price falls in the market. The Food and
Agriculture Organization (FAO), 2002, reports that harvest losses of products such as
potatoes, bananas, tomatoes and citrus fruits are estimated by authorities in some
developing countries at no less than 50 percent. This is because most fruits, vegetables
and roots are very perishable.

Most of the waste generated in Ceda is deposited in the Bordo Poniente landfill without
receiving any treatment or being used in any way. The benefits of taking advantage of
the biodegradable organic waste generated in supply centers could be considerable, and
among them we can mention:

The decrease in the amount of organic matter that is deposited in landfills (final disposal
sites for municipal solid waste).

The reduction of pollution emanating from final disposal sites. The comprehensive use of
agricultural waste produced daily in supply centers could provide useful products such as
compost (aerobically) or biogas (anaerobically).

The method that has represented the best option to treat the waste in question in Mexico
City has been composting. There are different ways to produce compost, the description
of the different composting processes and the difference between them is described in
detail in various sources.

The pile composting method does not require reactors. The organic matter is piled up in
piles after being chopped or ground (if the process requires it) and mixed. These piles
are mechanically turned to promote aeration and control temperature. The dimensions of
these piles depend on the material being treated and the available area.

In the case of Bogotá, Colombia, for example, according to a study carried out in 2008,
83% of the waste generated within Corabastos on that date was of organic origin. The 80
tons of waste per day were reduced to 60, as a result of a program that began months
ago, through which, in its first stage, the entry of packages packed in sacks that had
organic waste inside them was prohibited. The second stage of this process is aimed at
prohibiting the use of wooden boxes to pack fruits, and their replacement with plastic
boxes.

Of the 80 tons that remained inside the Bogotá supply center, 10 are used by people
who live off waste. They recycle cardboard, wood and plastic; organic waste is used for
consumption. The remaining 50 are sent to the landfill.

Organic matter sent to the landfill is composted and sold as fertilizer. The resources
generated by the garbage collection and cleaning services of warehouses and platforms
are carried out internal activities for the direct benefit of the supply center.

The administrator of supply centers must know the dynamics of organic waste
generation. It is very important that you take into account the factors that lead to their
presence and the consequences of their poor management, to the detriment of hygiene
conditions and the general image of the supply center.

The main factors are:

Postharvest losses in food: which requires greater attention in products that are easily
decomposed, have a short shelf life, and facilities that do not have refrigeration
chambers.

The promotion of the replacement of wooden boxes against collapsible and reusable
plastic boxes (chep type)

The lack of quality criteria when receiving goods and allocating their faster movement to
products with compromised quality.

The need to provide, through food banks, processed food plants, animal food
manufacturing plants (pets and livestock) and composting companies, the product that
will no longer be integrated into the marketing chain.
Increase education among members of the supply center regarding the convenience of
proper garbage disposal.

The street sale of food in a disorderly manner and without the cleaning and proper
disposal of containers and materials used in its service.

The accumulation of waste and garbage that become nests for pests and vermin in
general, which with their presence and their excreta increase not only the bad image of
supply centers and potential public health problems.

Information and education to the commercial sector on food regulations and facilities
dedicated to food handling and the need to comply with their requirements. Particularly
what is established in NOM-251-SSA1-2009 of the Secretary of Health.

Administrators, merchants and users must be aware of the consequences of not

adopting adequate garbage and waste management practices, so it is very important to
adequately communicate what is sometimes evident, but that custom has generated
insensitivity to the community and the environment surrounding the supply center. The
most relevant consequences of poor garbage and waste management are:

Effect of organic leachate on the deterioration of the asphalt layer:

It is recognized that the asphalt layer of internal roads deteriorates three times faster in
the sectors where fruits are sold than in the sectors where tubers are sold and six times
faster than in the dry and processed food sectors.

7.2.2. Loss of competitiveness due to high losses or delays

Foods of perishable origin that are not properly classified are more expensive and all the
deficiencies of the food distribution system in our country are paid only by the final
consumer, since the other links in the agri-food chain simply increase the price of food. ,
when these deteriorate in your hands.

7.2.3. Pollution in specific areas

This occurs when waste is not collected at the time it originates. In the vegetable and
fruit sector, activity is complicated when it rains, because the waste becomes caked on
the floor. The traffic of vehicles, pedestrians and handcarts turns waste into an
amorphous mass on the roads. To remove them, intense scraping or the use of chemical
products or heat treatments to the floor is required.

7.2.4. Work accidents

The waste produced by some foods is responsible for a large number of pedestrian slips
and falls.

7.2.5. Begging

Part of the environment of Las centrals de abasto is made up of people from highly
marginalized and poor strata. Children and adults arrive every day, looking for waste that
can be used for food. Decomposing, mistreated and soil-contaminated fruits and
vegetables are collected. These spoiled foods are used for human consumption by these
sectors of society, which contributes to their overcrowding and generation of
contamination.

7.2.6. Bad image of the plant

The aspect of uncleanliness is one of the factors that most affects the presentation of
any Central de Abastos or market place. It is undoubtedly one of the weaknesses that
has the most negative effect in the organization of hypermarkets and supermarkets.

7.2.7. High operating costs

To the costs of cleanup and garbage disposal, we must add the expenses incurred in
repairing roads caused by leachate from fruits and vegetables, as well as the money
required to unclog sewers or repair damage due to Floods generated by drains blocked
by garbage.

For this reason, the administrator of the supply centers must contribute with his
knowledge to awareness and education, based on clear and precise standards, simple,
effective and easy to apply, control and verify. All of this will contribute in the near future
to reducing the suffocating problem of garbage in the country's Supply Centers.

The image problems are more serious than can be understood. A bad image of a supply
center drives away current customers and prevents the arrival of potential customers.
Particularly, the fact of the functionality of the supply centers is an understood order of
things in such a way that the different actors (merchants, vehicles, merchandise, users
and clients) move through their facilities in an understood order, but which can be give
the image of apparent disorder.

This disorder is what keeps those consumers who are now familiar with new formats that
offer them adequate spaces to carry out their activities away from supply centers.
Additionally, apparent disorder is generally linked to the occurrence of criminal acts,
something that large buyers try to avoid every day.

That is why it is necessary to address in the first instance the lack of control of the flow of
goods, vehicles and people. Typically where congestion occurs, it is more common to
see other types of associated problems, particularly those related to safety.

Although it is true that sometimes investments to generate better ordering and flow
control conditions require considerable investments, there are now government
programs for the equipment and solution of poorly lit corridors and the renovation of
facades or facilities.

But simple and low-cost aspects can help improve the image problem. For example, the
presence of products and merchandise on platforms is the main cause of impeding flow
and generating congestion. The use of corridors and streets to accommodate broken
down machinery or machinery in the process of repair or as a warehouse for waste
products generates not only unnecessary congestion, but also bad image problems.

On the other hand, from the point of view of external image, the physical renovation of
facades is only recommended when there are architectural projects in facilities with a
historical profile or cultural value. There are very few supply centers that fall into these
conditions, making it very difficult to implement these actions, regardless of the cost they
represent.

However, among the good practices that can be implemented in this regard, are those
such as renovating facades and walls and covering them with striking colors in light
tones, to facilitate the identification of hygiene or overcrowding problems.

The proper use of walls for advertising aspects can not only improve the image of the
market, but also generate additional income for the administration of the supply center.
These strategies for using spaces for advertising can also be standardized in formats,
colors, presentations and design models seeking to give an image of visual comfort and
continue with the apparent disorder.

Flow control is important, as already mentioned, not only for traffic aspects but to have
adequate spaces for parking, heavy load areas, and light load areas. Streets with
adequate vehicle flows and defined circulation directions significantly improve the image
of the supply center.

7.2.8. Security

It is evident that in Mexico there is a period of violence, a situation to which the supply
centers are not immune. However, it is not high-impact violence that has plagued supply
centers, but rather the so-called common crimes, such as robbery, assault, fraud,
deprivation of liberty, kidnapping, sexual crimes and homicide. In certain cases, there is
an impact of organized crime, particularly in the form of kidnapping and extortion.

That is to say, these crimes have been present in the surroundings of supply centers
practically since the beginning of their operations, but crime has found in disorder, lack of
control, and disintegration of the group and cooperative work of merchants, coupled with
the lack of preventive measures against crime, a suitable breeding ground for the
uncontrolled growth of these problems, as reported by the Secretariat of Public Security
of the Federal District, about that in the last five years in the supply center of the city of
Mexico, vehicle theft increased 110 percent; a pedestrian 68 percent and a business 46
percent.

Likewise, statistics from retail trade representative organizations show that consumers in
general consider that one of the benefits of going to supermarkets or convenience stores
is, among others, not having to worry about their own safety. Likewise, on many
occasions, the statistics of complaints of this type of crime reflect a greater insecurity
than that which occurs in other businesses. At the same time, the levels of security
perceived by customers are often worse than what should be deduced from such
statistics. That is to say, whether or not crime is greater in supply centers than other
commercial formats, the perception or image of insecurity has kept many people away
from supply centers, preferring above all other formats, particularly self-service.

Usually, security in supply centers corresponds to the municipal or state authority, and is
carried out by members of the police or public security service. This does not solve the
problem since the provision of said services is insufficient, either due to the number of
personnel that can be allocated to market surveillance, or due to the scarcity of means at
the disposal of said personnel. The issue of corruption and collusion between criminals
and police is an issue that is not in the hands of the supply centers to resolve.

Security being a fundamental element for the correct functioning of the supply center, in
many cases private security has been hired, as well as the establishment of
computerized facilities for the continuous control of the premises' surveillance services
and general facilities. , including, for example, an alarm center, which allows any
anomaly to be instantly observed, as a complement to public police services. However,
these aspects require investment, maintenance costs and coordination with public
security, aspects not always available to the administrator of the supply center.

Therefore, the recommended good practices are aimed at strengthening the issue of
perception. To date, there are no spokespersons for supply centers that issue
statements to the public about the actions taken to improve the safety of customers and
users. No alerts or complaints are issued about identified systematic problems or crisis
management is carried out when these issues arise. It is important that the supply
centers, through their administrators, can give their version of the events. Institutional
cooperation is a permanent task, which should not be omitted or put into its correct
consideration. The presence of police officers, carrying out operations and reporting
must be tasks that must be promoted by the acting administrator.

The administration of the supply center is key in the process of organizing merchants
and users and reporting. However, this task must be done with a low profile and taking
appropriate precautions, since criminal retaliation is also an issue that must be
anticipated and addressed.

The most common and easiest to organize are deterrent schemes. They are low cost,
they are visible and they seek a very desirable aspect: that the crime is not committed.
Among these deterrent schemes are warning banners, security patrols with the
competent authority, the distribution of brochures and pamphlets, the placement of
surveillance signs 24 hours a day, the announcement of the establishment of information
networks between users and generating recommendations to users and merchants on
basic security rules. In some cases, the installation of permanent surveillance device
simulators can be an

deterrent strategy, but it will be of very little use if the problem is not faced
comprehensively.

And finally, eliminate aspects favorable to crime or the promotion of crime, such as
overcrowding, disorder, lack of cleanliness, accumulation of waste, poor lighting
installations and the accumulation of boxes or packaging and shipping materials. or the
presence of abandoned vehicles are issues that the supply center administrator must
address in collaboration with the merchants.

7.2.9. Technological innovation

Various initiatives have been adopted trying to generate economies of scale, however,
for various reasons, including cultural reasons, the diversity of companies in size and
type and the lack of a formalized management model, joint actions have not been
established for the purchasing management, bulk sales, image campaigns or generation
of statistical information on sales and consumer behavior. Other formats, such as
supermarkets and convenience store chains, have easily been able to establish offer
strategies, hook products, promotions, raffles, among others, thanks to the use of
technology and the power currently offered by tools such as the internet, telephony. cell
phone and information networks.

Illustration 6: The implementation of new technologies is sought.

In Mexico, for example, the use of information technologies is widely adopted by
consumers. The number of internet users in Mexico is 40.6 million people, 14% more
than those reported in 2011 (34.9 million), according to the AMIPCI Study of Habits of
Internet Users in Mexico 2012. 92% of users with Internet access say they access a
social network and more than 65% of work time spent on the Internet is dedicated to
interaction with suppliers or commercial promotion activities.

Little is seen in the information networks about the presence of supply centers, in
addition to the fact that no supply center has a relevant impact on social networks. This
is relevant, because in addition, the majority of consumers with Internet access are found
in medium to large population centers, right where the supply centers are located.

And finally, to understand the impact of information technologies on the consumer, AMCI
reveals a significant increase in the use of mobile devices to connect to the Internet: 58%
use this type of device; In 2011, only 26% did so.

On the other hand, information technologies are already a business tool, a model that
can be adopted by small to large merchants. Information networks and social networks
are useful for the user and the merchant, allowing marketing and sales and consumption
promotion projects to operate, with an easy-access and low-cost scheme.

However, it is possible and convenient for supply market traders to take initiatives in this
regard through the market traders' associations and/or the managing body. Some more
sophisticated technological tools that may require a relevant investment in control
platforms are those used for traffic control, similar to automated flow schemes in large
cities; the establishment of centralized collection boxes, which require not only the will of
the merchants, but also the approval of their sales and collection practices, a situation
that cannot occur due to cultural or internal organization issues; and the establishment of
purchase loyalty cards, with bonuses and incentives, as well as seasonal promotions.
These schemes must be accompanied by control mechanisms that require centralized
systems operated on high-level technological platforms.

However, there are other schemes, such as those for identifying users with access codes
to provide inventory information, availability calendars and credit schemes; establishment
of payment terminals with credit or debit cards; filling out customer satisfaction and
purchasing habits surveys; the establishment of profiles on social networks (Facebook,
Twitter and hi5 are the most popular networks in Mexico) and commercial promotion
through it.

It is important to understand that the use of cards as a means of payment for merchants
is not only a purchase incentive due to the security it offers, but also provides statistics
and information on customer behavior and allows for promotional campaigns and offers.
maintains a communication link with the user and generates useful information for the
rest of the merchants.

Among the type of information that can be generated is aggregate information and
statistics of customers in the area (by characteristics), customer habits (purchases by
schedule, purchase volume by large subsectors, etc.).

Only a couple of supply centers have developed a website, which allows them a greater
presence on the Internet, access to a younger audience and give a more dynamic and
modern image, sharing useful information not only to buyers but also to information
generators. and opinion leaders. The internet pages must contain at least: information
about the stalls and merchants, schedules, promotions, calendar of events, image and
photo gallery, loading and downloading area, news and history, contact and links of
interest.

Of course, the use of information networks can also be used internally in the consortium
of unionized merchants in a supply center, who through an intranet can access
information of relevance to them, such as information on prices, volumes. of production,
situations that affect production and commerce, such as climatological, political and
social issues, in addition to alerting the community on security aspects. With small
investments, the supply center administrator can be the promoter of these initiatives and
identify the suitable providers of said services. Internet-based networks can also be used
to monitor relevant aspects of the supply center environment, through the installation of
cameras with wireless Internet connection, which allows for a very low-cost preventive
surveillance system.

7.2.10. Optimal sizing

When the establishment of supply centers in the country was planned, minimum sizes of
warehouses, aisles, platforms, corridors and specialized areas for retail sales and market
days were established. However, it was not planned that, over time, packaging
standards, transportation, palletizing practices, and cold chain needs would change
substantially over the years.

For this reason, today there are problems in the handling of consolidated loads, there are
problems for the transit of trailers with long boxes (52 feet), there is no maneuverability
for the handling of palletized loads and the flow of people and goods sometimes slows
down. becomes complicated.

The administrators of supply centers must focus on addressing the problems of

overcrowding of small stallholders, or those dedicated to selling food on the street, who
also contribute to the same problem.

Many of the optimal sizing problems occur due to non-compliance or lack of other good
practices. For example, overcrowding and disorder contribute to hallways and platforms
becoming saturated with product during peak hours of flow of people and merchandise.
So by solving overcrowding and disorder, you can offer a better visual space for sales,
improve the traffic of goods and people, making security controls efficient and reducing
accidents.

In new projects, the aspect of optimal sizing has been resolved, but in order to maximize
spaces for sale or rent, some projects continue to incur the same bad practice. Care
must be taken to consider the above in the design of sales spaces.

7.2.11. Signaling

In any large-scale marketing project, signage is key to providing the user or eventual
buyer with the best experience while moving through the supply center facilities.

In an era in which time is key and becomes a decision factor when carrying out
commercial transactions, it is important that a market, whether new or with years of
operation, improve the conduction of flows through a correct signaling plan.

Signage allows us to have more adequate flows of goods, people and vehicles,
establishing rules to free up spaces. It also becomes a regulator of habits and customs
and helps people in case of emergencies. The administrator of supply centers must
remember that a supply center is not only a merchandise trade center, but rather the
concentration of assets and, above all, people.

There are two ways to start a signage program: the simplest is to follow the customs and
traditions of the market, especially in supply centers that have been created for years
and where the commercial areas have already been defined by sections, common areas
for users and those for retail sales, which are the most in need of order. In this way, the
signaling plan can be adapted to the plant's customs and there is less resistance to
change.

In new supply centers or where negotiations are carried out with merchants to establish
operating rules and the consequent signage for observation and surveillance, it is easier
to predetermine the flows, areas and spaces designated to improve the shopping
experience and benefits. to large and medium buyers. In this circumstance it is possible
to group the different activities by sections, creating differentiated areas grouped by
product categories, which allows buyers better orientation and ease of choice.

There are various signage strategies, such as establishing signs to direct buyers to
specific areas or directories that indicate the location of specific areas. Traffic signs, the
authorization or prohibition of large or heavy-duty vehicles, the authorization or
prohibition of parking, the authorization or prohibition of placing food stands or waste
deposits. Traffic signs must be managed in conjunction with the municipal road authority.

The provision of services and special areas, focused on the user and the merchant, must
be properly signposted, with the intention of informing the consumer and buyers of the
availability of areas dedicated to their well-being. In this sense, information can be
provided about the location of banks, restaurants, health services, parking lots, ATMs,
telephone booths and customer service offices, in addition to the location of the supply
center administration.

In projects where official resources can be managed, a plan can be established to

identify commercial areas or sections of specialized merchandise based on color codes,
differentiating the sales of perishables from general merchandise, and within perishables
the sale of specialties, fine fruits, tropical fruits, vegetables, meat, dairy products and fish
and seafood.

Safety signage is not only convenient but also mandatory, in terms of the Civil Protection
Law of the different entities in the country. Signs such as emergency exits, location of fire
extinguishers, evacuation routes, telephone booths, location of police modules,
emergency telephone numbers (police, firefighters, ambulances), location of first aid and
first aid kits and meeting points are some of the topics that must be considered in these
programs.

7.2.12. Services

Supply centers are centers of concentration of consumers and, therefore, demanders of

services. The vision of an administrator is to offer services that allow them to obtain trust,
loyalty and repetition of the purchasing experience or the projection of their services
through that mass of consumers.

But this is not only perceived by the supply centers. Service providers and suppliers of
various comfort standards also know this. That is why the administrator of the supply
center must seek synergies or strategic alliances with these service providers, among
others:

• Telephone service providers

• Broadband internet service providers
• Banking service providers
• Providers of other financial services (savings banks, exchange houses, securities
transfer services)
• Food services
• Health services
• Commercial information centers
• Points of sale of commercial chains
• Radio – communication and cell phone services

Furthermore, the availability of these services must be adequately communicated to

users, clients and merchants, with the intention that they are taken advantage of and feel
the support of the administration of the supply center in carrying out their business.
Some of these services, when negotiated with mass suppliers, can generate income for
the administration of the supply center. For example, the sale of spaces for the use of the
Internet, the sale of advertising spaces, the collection of health services or food, or
contributions of quotas from companies that seek to place their services in the mass of
consumers who go to the supply centers. In relation to the retail buyer, it is important to
understand that the consumer goes to sales centers that increasingly offer to resolve
their demands in a single service. In part, it is the success of commercial chains that
focus on offering “everything in one”, generating well-being for their users and
customers. This undoubtedly increases the flow of people and sales and solves one of
the great challenges, which is the issue of security.

Thus, the administration of the supply center can direct part of its attention policies to
develop consumer-focused services and seek the return of those who stopped coming
by finding better options, perhaps not in quality and price, but in services. These are,
among others: home or parking lot deliveries, ATMs and card payments, centralized
orders and payments, telephone and internet service, and food and health services. The
cost of these services provided to the retail consumer could be absorbed by the
administration of the supply center as a consideration for the purchasing preference.

7.2.13. Partial conclusions

Good practices allow us to offer better quality to users and partners in supply centers,
facilitate the administrative and management work of administrators, improve the image
and perception of users and partners about the safety, hygiene and quality of services.
 8. REVIEW OF THE APPLICABLE LEGAL FRAMEWORK

The work of the administrator of a supply center is not arbitrary. Due to a series of
strategic considerations, in its origin, the activity carried out by a supply center was
recorded in the constitution of the United Mexican States. From this they derived the
application of countless federal laws and regulations, in addition to state and municipal
regulations, considering their activity not only commercial, but also real estate,
commercial, fiscal and food management.

That is why the administrator must know, document, and update his knowledge

Illustration 7: All the legal variables of a plan must be analyzed, which will impact the market.

of the laws, regulations, standards and official provisions related to the existence,
functionality and operation of the supply center under their charge. It is not about
knowing the specific description of each of them, but rather their existence and
application, in order to support their initiatives and functions.

This is achieved by knowing the legal framework in which it is circumscribed, which must
also reflect the legal structure that constitutes the supply center itself for its internal
operation. That is, depending on the legal entity that was chosen for its constitution, it is
necessary to determine if there is a correlation between its corporate purpose and the
tasks and activities that it wishes to carry out.

Identify and characterize the most common legal elements that affect supply centers and
the companies that participate in these operations.
The supply centers in Mexico are organized through legal entities, which are the ones
that support their operation. In Mexico, the majority operates under the concept of civil
association or civil society, which are the most common figures. A few are called trade
unions, without determining the guild character that makes them up. There are supply
centers that are managed through government programs and operate as trusts, and only
in one case does the center act as a public limited company with variable capital.

And this union has this distribution mainly because it has historically been linked to a
non-profit cause or commercial activity, which on the one hand protects them by giving
them benefits and tax exemptions, but on the other hand limits the scope of their
programs, since the regulations in the civil code for civil associations are very clear.

This in turn represents a challenge for the administrator of the supply center, who is
required to fulfill tasks in the organizational areas, in the registration and real estate
administration, in commercial and fiscal aspects and before the health authority because
they are areas of food management.

In principle, in the organizational matter, the administrator of the supply center must have
clarity, access and control to the following essential documents:

• Constitutive act of the organization, with internal statutes or regulations of

partners or associates
• Mechanics of election and operation of the board of directors, its approval,
election or ratification process before the assembly and minutes of appointments
and powers of its legal representatives

• Minutes of ordinary and extraordinary assembly, of the current cycles and since
the creation of the organization
• Designation and powers of its current representatives and legal representatives,
external auditors and oversight committee, ratified before the shareholders'
assembly or approved at board of directors meetings.

It is necessary that all these documents be recorded in a public deed and registered with
the corresponding state authorities in the area of people, property and commerce,
companies and associations.

The arrangement of the documentary structure of the supply center may establish a
starting point in decision-making for the implementation of improvement programs. This
allows the administration of the supply center to focus on its most relevant tasks, among
others:

• Assist with the board of directors in directive, managerial and administrative tasks.

• Preparation and updating of strategic plans in the comprehensive development of

the supply center.
• Development of business plans for new projects.
• Development of continuous improvement projects in ongoing projects.
• Development of financing plans for general activities of the plant and financial
plans for projects
• Development of infrastructure projects for plant improvements or new
developments and their financing
• Execute the tasks entrusted to the administration of the center by the board of
directors or recorded in Identification and development of the business plans of
partners or groups in the supply center, establishment of social communication
plans (spokesperson)

Management of resources before official federal, state and municipal agencies, or in

international bodies

Management of official procedures and permits before federal, state and municipal
authorities

Execution of cooperation and complementation agreements with other institutions or with

the government

Management of national and international relations and attention to union or specialized

events in the commercial sector

Regarding the real estate operation, the administrator of the supply center must have
information, documentation and legal support in relation to:

• Ownership of land and property titles in accordance with the property regime
where the market facilities are located
• Condominium or private property regime, or bailment agreements with public
 assets usufructed by the supply center
• Internal regulations of the supply center or regulations established by the state or
municipal authority (in the case of trusts where the trustor is the authority)

• Relationship with the municipal or state authority for the administration of public
goods transferred by the authority on loan to the supply center
• Aspects related to civil protection and maintenance programs or
remodeling of facilities

• Updating property taxes and appraisals, regularizing their

situation and determining its viability as collateral guarantee in financing

Regarding the commercial activities that the administrations of the country's supply
centers sometimes lead, either on behalf of their partners or through commercial
promotion schemes organized by the administration in order to generate income, it is
important to monitor in the first instance the purpose of the company formed, in order not
to incur in violation of tax laws, or that may be the subject of disputes by its partners.

Especially, it is relevant that the administration of the supply center takes care of the
aspects related to profit and commercial speculation in the commercial activities in which
it is involved, since an activity carried out outside the legal purpose of the organization
and the consequences can be very expensive in terms of tax planning.

Additionally, it is recommended that, in the event that the administration of the supply
center develops or involves the supply center in projects of a commercial nature, through
the scheme of generating self-sustainable projects or with government support, it can
count on advisors or consultants. specialized in traffic, logistics, commercial contracts
and credit and collections

Finally, in the area of fiscal responsibility, regardless of the activities carried out or the
legal figure to which it has subscribed, it is important that the administration of the supply
center has the following documents and records:

• Registration in the Federal Taxpayer Registry

• Notice of update of economic activity and tax obligations in case you have
expanded or modified your organizational or business activity.
• Warning of change of tax address and of the
 address where the
tax information (they are not always the same addresses)

• Warning of resumption of activities, in if you

have suspended your
temporary activities

• Authorization to hold tax verification at an address other than the fiscal address
• Formal accounting and in accordance with Financial Reporting Standards in
Mexico
• Complete and comparative financial statements
• Clear and comparative financial ratios
• Financial and/or fiscal opinion according to needs

An aspect that has generally been neglected by merchants and administrators of supply
centers are the legal obligations that supply centers acquire for the simple fact of
receiving, storing, packaging, distributing and marketing food. This is due to the
existence of the official Mexican standard NOM-251-SSA1-2009, which establishes the
requirements for the operation of food production, handling, processing and distribution
facilities. This standard establishes that facilities that fall into these cases must
implement a package of prerequisite programs for the management and distribution of
food. These prerequisites seek to establish minimum operating conditions regarding
quality and the conditions necessary to avoid the presence of chemical and biological
hazards in food.

Among others, the mandatory requirements for companies that handle food refer to the
specifications and conditions established in relation to:

• Facilities and areas

• Equipment and utensils
• Services
• Storage
• Operations control
• Raw Materials
• Packing
• Water
• Maintenance and cleaning
 • pest control
• Waste management
• Health and hygiene of the personnel
• Transport
• Training

It is undeniable then that the administrator must have basic knowledge of the legal
framework and its application, in all contexts of its operation, especially in the operation
of projects that seek to consolidate diversification strategies or the generation of
additional income to service fees. of which supply centers are traditionally financed.

Review and systematization of national and international legislation applicable to supply

centers and companies that operate in their niches.

The current regulatory framework applicable to supply centers, their organization and
their operation is based on what is established in the Political Constitution of the United
Mexican States Articles 27, 28, 73, 115 and 122 (for the Federal District), which
guarantee the realization of food supply activities, through the policies established by the
executive in the provisions relating to free enterprise, the right to food and the capacity to
supply food and general merchandise, as well as the regulation of its services.

Likewise, in addition to the constitutional framework and with a focus on daily operation,
markets and supply centers are considered a public service, whose regulation is
contemplated in a set of legal provisions, which support their operation and functioning at
the federal, state and local levels. municipal, through the regulations that will be indicated
in this section.

In a complementary manner, all laws and regulations pour their specifications into the
official Mexican standard, the ultimate instrument of the complete application of the law,
which establishes the specifications that natural or legal persons must comply with
according to the nature of their business. operation.

In this section, the national and international legal framework that affects the operation of
businesses in supply centers will be reviewed, and of which the administration of said
centers must be aware, systematically and in accordance with the attention to the
different needs of its customers. partners.

8.1. FEDERAL LEVEL

At this level is the Political Constitution of the United Mexican States, which in its article
115, section III, states that the public services of the same state, with the prior
agreement of its city councils, may be coordinated for the best provision of public
services, including , the operation of markets and supply centers.

On the other hand, the Sanitary Code of the United Mexican States in its eleventh title,
first chapter, establishes that the Ministry of Health will carry out sanitary control of food,
beverages, tobacco, medicines, perfumery and hygiene products, among others.
Therefore, establishments that produce these products or sell them must have a health
license. In the case of markets and supply centers, those who carry out trade or provide
their services must have authorization from the Ministry of Health to be able to operate.

8.2. STATEWIDE

At this level are the Political Constitution of the State where the supply center is located
and the Municipal Organic Law of the corresponding municipality. Its support is found in
the deconcentration of functions established by the Political Constitution of the United
Mexican States in its article 115, stating that the public service of markets and supply
centers will be in charge of the municipalities, with the consequent participation of the
state authority. .

The State Law of Human Settlements, also located at this level, regulates the planning of
urban spaces, including those intended for commerce. Likewise, it establishes certain
standards for the construction or expansion of facilities dedicated to the provision of
public services; For this reason, municipal authorities must adhere to the provisions of
this law, to carry out construction or remodeling activities of markets, seeking to balance
the urban infrastructure of the municipality.

However, given the republican structure of our laws, non-tax state provisions are granted
for compliance and surveillance to the municipal entities, where the supply centers are
operating.

8.3. MUNICIPAL LEVEL

In the Planning standards for Municipal Public Markets, Supply Centers and Supply
Modules, which were established at the time by the National Institute of Public
Administration, in conjunction with the Center for Municipal Administration Studies, in
their technical guides for municipal administration, A set of standards are described for
the provision, construction, location, operation and architectural design of supply centers.

It leaves the municipal sphere, by adhering to international regulations and standards,

the Urban Equipment Regulatory System, published by the Secretariat of Social
Development, in the part dedicated to the Wholesale Supply Units of the Supply
Subsystem, operating in a secondary manner. At this level are the Police and Good
Government Sides, the Construction Regulations and the Public Markets Regulations.

These regulations attribute the power to the city council to regulate everything related to
the organization, operation, administration, conservation and exploitation of public
services, ensuring that they are provided in a continuous, general and equitable manner
to the entire population. Not all states or all municipalities have these regulations,
although the most competitive are those that have made progress in regulating the
supply centers present.

8.4. INTERNATIONAL LEVEL

Supply centers that carry out foreign trade activities, whether import and export, will be
regulated by the following laws and regulations:

• Economic complementation agreements

• Free trade agreements
• Foreign Trade Law and its regulations
• Customs Law and its regulations
• Decrees facilitating foreign trade (PITEX, ALTEX, Maquila, PROSEC)

And the regulations applicable to specific products in foreign trade, mainly considering
the rules of labeling, health and safety, sanitary and phytosanitary measures and
payment of tariffs or taxes.

The administrators of the supply centers will be able to count on an exhaustive catalog of
laws and regulations related to the operation of supply centers, even though it will always
be necessary to request the legal area to validate the laws and regulations issued at the
state level and to update federal laws and regulations.

Some of the laws identified are:

• Acquisitions Law for the state in which they are located

• Public Works Law for the state in which they are located
• Federal Labor Law

• Federal Law of Workers at the Service of the State

• General Law of Titles and Credit Operations
• Federal Law of Administrative Procedure
• Law of the ISSSTE
• Law of Social Security
• Law of the Contentious Administrative Court of the Federal District
• Law of Urban Development for him state in that HE locate
• Law of Civil Protection for he state in thatHE locate
• Law of Amparo
• Law of the Patrimonial Regime and Public Service for the state in which they are
located
• Law for the Operation of Commercial Establishments for the state in which they
are located
• Income Law for the state in which they are located
• Citizen Participation Law for the state in which they are located
• VAT Law
• ISR Law

Codes and regulations:

• Which are issued to establish general rules for the interpretation of laws and their
applicability depending on the operating framework of the commercial activity
carried out in a supply center.
• Civil Code for the state in which they are located or for the Federal District
• Code of Civil Procedures for the state in which they are located or for the
federal District

• Federal Code of Civil Procedures

 • Penal Code for the state in which they are located or for the Federal District
• Code of Criminal Procedures for the state in which they are located or for the
federal District

• Commercial Code
• Financial Code for the state in which they are located or for the Federal District
Federation fiscal Code

8.5. OFFICIAL MEXICAN STANDARDS (NOM)

These standards are mandatory, since the Federal Law of Metrology and
Standardization establishes that they are the complementary specifications of the
regulatory framework in the life of natural or legal persons who perform their
administrative, operational, commercial and service functions in centers of supply.

Some of the examples of the most relevant NOMs:

Environmental: those that impact commercial activity and the impact on its environment.

Mexican Official Standard NOM-004-SEMARNAT-2002, Environmental protection -

Sludge and biosolids. - Specifications and maximum permissible limits of contaminants
for their use and final disposal.

Mexican Official Standard NOM-083-SEMARNAT-2003, Environmental protection

specifications for site selection, design, construction, operation, monitoring, closure and
complementary works of a final disposal site for urban solid waste and special
management.

Mexican Official Standard NOM-098-SEMARNAT-2002, Environmental protection-Waste

incineration, operation specifications and pollutant emission limits. Secretariat of
Environment and Natural Resources.

Mexican Official Standard NOM-083-SEMARNAT-2003, Environmental protection

specifications for site selection, design, construction, operation, monitoring, closure and
complementary works of a final disposal site for urban solid waste and special
management.
Mexican Official Standard NOM-002-SEMARNAT-1996, which establishes the maximum
permissible limits of contaminants in wastewater discharges to urban or municipal
sewage systems.

Official Mexican Standard NOM-003-SEMARNAT-1997, which establishes the maximum

permissible limits of contaminants for treated wastewater that is reused in public
services.

Official Mexican Standard NOM-001-SEMARNAT-1996, which establishes the maximum

permissible limits of contaminants in wastewater discharges into national waters and
assets.

Water management: those that are related to the use and management of water within
supply centers.

NOM-001-CONAGUA-1995. Sanitary sewage systems - Tightness specifications.

NOM-002-CONAGUA-1995. Home intake for drinking water supply - Specifications and

test methods.

NOM-005-CONAGUA-1996. Flushometers - Specifications and test methods.

NOM-006-CONAGUA-1997. Prefabricated septic tanks - Specifications and test

methods.

NOM-007-CONAGUA-1997. Safety requirements for the construction and operation of

water tanks.

NOM-008-CONAGUA-1998. Watering cans used in body cleansing -

Specifications and test methods.

NOM-009-CONAGUA-2001. Toilets for sanitary use. Specifications and test methods.

NOM-010-CONAGUA-2000. Intake valve and flush valve for toilet tank – specifications
and test methods.

NOM-013-CONAGUA-2000. Drinking water distribution networks - Tightness

specifications and test methods.

Labor: those that affect the generation and maintenance of jobs and the protection of the
worker.

NOM-001-STPS-2008, Buildings, premises, facilities and areas in work centers - Safety

conditions.

NOM-002-STPS-2010, Safety conditions - Prevention and protection against fires in

workplaces.

NOM-004-STPS-1999, Protection systems and safety devices for machinery and

equipment used in work centers.

Clarification to the Official Mexican Standard NOM-004-STPS-1999, Protection systems

and safety devices in machinery and equipment used in work centers.

NOM-005-STPS-1998, Relating to safety and hygiene conditions in workplaces for the

handling, transportation and storage of dangerous chemical substances.

NOM-006-STPS-2000, Materials handling and storage - Safety conditions and

procedures.

NOM-009-STPS-2011, Safety conditions for working at height.

NOM-010-STPS-1999, Safety and hygiene conditions in workplaces where chemical

substances capable of generating contamination in the work environment are handled,
transported, processed or stored.

Clarifications and Errata of the Official Mexican Standard NOM-010-STPS-1999, Safety

and hygiene conditions in workplaces where chemical substances capable of generating
contamination in the work environment are handled, transported, processed or stored.

Agreement that modifies the Official Mexican Standard NOM-010-STPS-1999, Safety

and hygiene conditions in workplaces where chemical substances capable of generating
contamination in the work environment are handled, transported, processed or stored.
NOM-011-STPS-2001, Safety and hygiene conditions in workplaces where noise is
generated.

NOM-014-STPS-2000, Occupational exposure to abnormal environmental pressures -

Safety and hygiene conditions.

Clarification and Errata of the Mexican Official STANDARD NOM-014-STPS-2000,

Occupational exposure to abnormal environmental pressures - Safety and hygiene
conditions.

NOM-017-STPS-2008, Personal protective equipment - Selection, use and management

in the workplace.

NOM-018-STPS-2000, System for the identification and communication of hazards and

risks due to dangerous chemical substances in the workplace.

Clarification to the Official Mexican Standard NOM-018-STPS-2000, System for the

identification and communication of hazards and risks due to dangerous chemical
substances in the workplace.

NOM-019-STPS-2011, Constitution, integration, organization and operation of the safety

and hygiene commissions.

NOM-020-STPS-2011, Pressure vessels, cryogenic vessels and

steam generators or boilers - Operation - Safety Conditions.

NOM-021-STPS-1993, Relating to the requirements and characteristics of reports of

occupational risks that occur, to integrate statistics.

NOM-022-STPS-2008, Static electricity in workplaces - Safety conditions.

NOM-024-STPS-2001, Vibrations - Safety and hygiene conditions in workplaces.

NOM-025-STPS-2008, Lighting conditions in work centers.

NOM-027-STPS-2008, Welding and cutting activities - Safety and hygiene conditions.

NOM-029-STPS-2011, Maintenance of electrical installations in work centers - Safety

conditions.

NOM-030-STPS-2009, Preventive health and safety services at work - Functions and

activities.

NOM-031-STPS-2011, Construction - Health and safety conditions at work.

NOM-100-STPS-1994, Safety - Fire extinguishers based on dry chemical powder with

contained pressure - Specifications.

NOM-101-STPS-1994, Safety - Chemical foam-based fire extinguishers.

NOM-102-STPS-1994, Safety - Carbon dioxide-based fire extinguishers - Part 1:

Containers.

NOM-103-STPS-1994, Safety - Water-based fire extinguishers with contained pressure.

NOM-104-STPS-2001, Extinguishing agents - Dry chemical powder type ABC, based on

monoammonium phosphate.

Clarifications to the Official Mexican Standard NOM-104-STPS-2001, Extinguishing

Agents - Dry chemical powder type ABC based on monoammonium phosphate

NOM-106-STPS-1994, Safety - Extinguishing agents - Dry chemical powder type BC,

based on sodium bicarbonate.

- NOM-113-STPS-2009, Safety - Personal protective equipment - Protective footwear -

Classification, specifications and test methods.

Agreement to modify the Official Mexican Standard NOM-113-STPS-2009, Safety -

Personal protective equipment - Protective footwear - Classification, specifications and
test methods.

Clarification to the agreement to modify the Official Mexican Standard NOM-113-STPS-

2009, Safety - Personal protective equipment - Protective footwear - Classification,
specifications and test methods.

- NOM-115-STPS-2009, Safety - Personal protective equipment - Protective helmets -

Classification, specifications and test methods

Health: those related to commercial operations and the protection of public health.

NOM-048-SSA1-1993. Which establishes the standardized method for the evaluation of

health risks as a consequence of environmental agents.

NOM-051-SCFI/SSA1-2010. General labeling specifications for prepackaged foods and

non-alcoholic beverages - commercial and health information.

NOM-110-SSA1-1994. Goods and services. Preparation and dilution of food samples for
microbiological analysis.

NOM-159-SSA1-1996. Estate and Services. Egg,

their products and derivatives. Provisions and specifications
sanitary.

NOM-179-SSA1-1998. Surveillance and evaluation of the quality control of water for

human use and consumption, distributed by public supply systems.

NOM-213-SSA1-2002. Products and services. Processed meat products.

Sanitary specifications.

Test methods.

NOM-242-SSA1-2009. Products and services. Fresh fishery products, chilled, frozen and
processed. Health specifications and test methods.

NOM-243-SSA1-2010. Products and services. Milk, milk formula, combined dairy product
and dairy derivatives. Sanitary provisions and specifications. Test methods.

NOM-251-SSA1-2009. Hygiene practices for the processing of food, beverages or food

supplements.

National mobilization of merchandise: those that affect the national trade of perishables.

Official Mexican Standard NOM-023-FITO-1995, Establishing the National Campaign

against Fruit Flies
Mexican Official Standard NOM-066-FITO-2002, Specifications for phytosanitary
management and mobilization of avocado

Modification of the Official Mexican Standard NOM-075-FITO-1997, which establishes

the phytosanitary requirements and specifications for the mobilization of fruits that host
fruit flies.

Official Mexican Standard NOM-040-FITO-2002, Requirements and specifications for the

production and national mobilization of commercial potatoes.

Mexican Official Standard NOM-054-ZOO-1996, Establishment of quarantines for

animals and their products.

Official Mexican Standard NOM-046-ZOO-1995, National Surveillance System

Epizootiological.

8.6. PARTIAL CONCLUSIONS

• The administrator must strengthen his basic knowledge of the legal framework
and its application
• You must have access to primary and updated sources of information
• There must be tools to access information on the legal framework via third parties.
 9. DESIGN OF THE SUITABLE OPERATIONAL STRUCTURE FOR A SUPPLY
CENTER IN MEXICO

The minimum infrastructure necessary to provide marketing services in supply centers in

Mexico, and the identification of characteristics of professionals specializing in the
commercial sectors that cover these operations, are issues of particular relevance in the
improvement of the administrative function that links the facilities. physical with its
functionality.

ADDRESS
GENERAL

Illustration 8: Structure of a general operations management.

In general, the main activities of supply centers are: reception, display and specialized
storage, as well as the sale of product. Considering the above, the focus of the operation
infrastructure has always been aimed at satisfying physical needs, such as:

• Maneuvering and parking areas for cargo vehicles.

• Loading and unloading platforms.
• Warehouses for handling and storage of products.

However, the operational infrastructure that must be behind each physical installation
has always been left aside, since, although some more modern or recently created
plants have paid more attention to the architectural design and functionality of spaces,
they continue to commit the same errors or the same problems continue to arise that in
the short term ruin the efforts to provide quality services to users and consumers.
In this sense, the content of this stage will be to obtain some guidelines that can help
transform the concept of efficient operation, which, together with the few or many
resources that are available to resolve the issues of physical installations in the supply
centers, can be make decisions by the administration of the supply center, together with
its boards of directors, to expedite attention to the needs of merchant partners and their
clients. These fall into:

• Assessment of basic organizational infrastructure

• Relevant elements in the operation and administration of the supply center
• Foreign trade aspects (when applicable)
• Food processing aspects (when applicable)
• Evaluation of the organizational infrastructure of the supply center

The organizational infrastructure of a supply center and its administration must be based
on a very simple or simple operation scheme in which the following components are
taken into account:

Legal documentation of the organization: in accordance with its corporate purpose, it is

important that it has the following documents, duly notarized and registered in the public
registry:

• Articles of incorporation
• Statutes
• Ordinary and extraordinary assembly agreements
• Membership and associate affiliation mechanisms

Formalization of a functional board of directors and its work team, in accordance with the
chosen structure and organizational scheme. It is important to have the minutes of the
assembly or the documents notarized that grant personality and powers to the different
positions and representatives.

Professionalization of services: for this, it is important that the internal organizational

structure has at least a catalog defining positions (staff responsibilities)

Communication tools, in accordance with your communication policies with partners,

whether through printed media (newspapers, magazines, brochures, pamphlets or
circulars), electronic media (voicemails, emails or text messages) and media public
(press releases, radio and television advertisements).

9.1. INTERNAL OPERATIONAL STRUCTURE

Supply centers are organized with schemes from very simple to very complex. In past
decades, it was very common to have very complex organizational charts, due to the
number of commissions that were created with the purpose of giving representation and
a sense of belonging to the members, as well as addressing everything from
administrative to cultural aspects.

An example of this is CONACCA itself, with a very complex structure as described

below:

• Members of the Executive Committee

• President
• National Vice President
• National Executive Vice President
• Secretary
• Pro Secretary
• Treasurer
• Co-Treasurer
• Secretary of Public relations
• Secretary of means ofCommunication
• Secretary of DevelopmentCommercial
• Under Secretary of Business Development
• Secretary of Tax Matters
• Secretary of Proselytism
• Secretary ofAgri-Food Development and Standardization
• Technical Committee for Evaluation and Monitoring of the Strategic Plan
• Information and Statistics Commission
• Commission for the Reorganization of Supply Centers
• Commission of Special Projects
• Commission for Member Attention
• Commission Legislative Liaison
 • Commission of Specialized Tours
• Commercial Arbitration Commission for Supply Centers
• Commission for Business Development
Socially Responsible
• Commission of International Affairs
• Commission of Special Events
• Commission of Good Business Practices
• Commission for the attention of Traditional Commerce (Public Markets, Tianguis,
Sobre Ruedas, Neighborhood Stores, etc.)
• Lift coordinator

The load being less on the administration office of the supply center, which has simpler
organizational charts, depending on the size of the center and the type of organization it
has.

However, more agile schemes are increasingly required, but they can support the
diversification of services and areas that allow the development of new or ongoing
strategic projects, with the aim of promoting benefits for the organization.

An example of this are the corporate schemes structured in international companies,

which allow them to take advantage of both the management of lucrative and non-profit
projects, as well as tax benefits in the different causes they lead.
The leading organization must continue to be the non-profit civil association, which
develops projects through civil society that provides consulting and training services, in
alliance with the variable capital corporation that provides internal services to the
association and allows you to have independent administration. Three related
organizations support this structure: the variable capital corporation that executes the
projects and develops the physical facilities and their improvement projects, the variable
capital corporation that operates investment companies for financing and raising financial
resources. from third parties, and finally, the non-profit foundation for the management of
projects for the benefit of society.

9.2. EXTERNAL OPERATIONAL STRUCTURE

For practically any company, and especially for a supply center, having external advisors
or consultants represents an advantage in many ways.
In principle, the purpose of the external advisor is to provide a specialized and expert
opinion in relation to topics of interest and high impact on the organization, at the lowest
possible cost. Having these experts on the payroll of the market administration would
have high costs, so outsourcing or eventual participation schemes represent more
reasonable expenditures. Likewise, many of these advisors manage to cover their
income by managing the projects they develop for supply centers.

Some aspects where external experts make valuable contributions to supply centers are
the following:

Correct identification of the purpose of the organization and its subsidiary figures: the
operational schemes described in the previous point require the development of projects
that consolidate the legal figures required to achieve the objectives of the association.
Likewise, the design of the applicable regulations and procedures are essential for the
correct operation of said projects. This is relevant since the investments that must
sometimes be made for these purposes are important, and it is better that their design be
carried out with an immediate operational approach that allows the implementation of
programs of interest to the trading partners of supply centers, while in parallel they allow
the generation of income or economic activity.

Basic knowledge of updates in the applicable tax miscellany: annually the tax authority
issues the generally applicable provisions on tax matters, and the specifications
applicable to certain business sectors, particularly tax benefit programs. Since, as has
been reviewed, companies in the supply sector can have various figures and roles in
business activity, the administration of the supply center can provide a service to its
partners by identifying and bringing together experts in the field, so that they can timely
provide the corresponding advice. For its part, the administration of the supply center
itself must be aware of these issues, whether to address its own needs or the union
initiatives that are launched in this regard. Advisors on these issues are particularly
valuable since they allow the needs of the supply centers to be translated into the fiscal
language that the authority needs to understand.

Use of external accounting services: perhaps the most common external service, of
which the administrations of the supply centers have more experience. However, beyond
the correct registration and application of income and expenses, the meaning of this
external advice must be oriented to generate information on productive efficiencies and
profitability of internal processes in the administration, in order to evaluate their efficiency
and effectiveness. Additionally, it can be complemented with financial analysis, which
allows determining indicators and results of the best use of resources and their
application, in order to minimize the cost of money and maximize your investment.

Taking advantage of tax strategies: once the operating framework of the supply center
and the legal figures that will circulate around its projects have been defined, the
assistance of tax experts is important to seek efficient tax payment and its application in
new projects, or their return when the law so establishes, to strengthen the financial
position of the administration of the supply center. This is not a minor issue, since it
allows us to have liquid resources to meet the tax responsibilities of organizations or
reduce the regular tax burden.

9.3. FOREIGN TRADE

The supply center that wishes to export or that carries out foreign trade activities must be
clear about the marketing panorama of its product in foreign markets, especially the
distribution channels that it will take because many times the decision to sell to an
intermediary facilitates operations. of sales than if you try to reach the final consumer.
Also, supply centers that wish to carry out food processing activities must know at least
the regulatory framework that regulates said activity.

Regarding foreign trade, this activity requires knowledge of the destination market,
experience and resources. Sometimes, the introduction and consolidation strategy for
micro, small and medium-sized companies is indirect export through marketing
companies, and once learned about exports, do it directly, or, so that it is the constant
form of export. .

Companies that operate in supply centers, or those that wish to do so on a union basis,
take into account the following key factors:

Distribution channels: There are multiple alternatives in the international market to

choose the most effective distribution and marketing channel, which guarantees the
success of export products. The function of the marketing channel is to offer the right
product in the right market, at the right time at a suitable price. Some of these channels
are: Importing Agents, Distributors, Wholesalers and retail sales centers.

Transportation and freight: It is important to first define the optimal means of

transportation (land, multimodal, air or sea).

Price Setting: Two procedures are available to formulate the export price. One starts
from the plant price, to which the other concepts are added to obtain the export price.
The other starts from the market price (optimal), and subtracts the aggregate concepts
that are calculated separately, to adapt the variables of the equation to the
predetermined result.

Expenses incurred to export

Export container and packaging

Marks, labels, legends or special prints for export (on the packaging)

Load optimization (consolidation, unitization)

Inspection, certification and export verification in plant or warehouse

Pre-storage (if required)

Document processing

Collection or national transportation, including maneuvers or rental of special equipment

(if applicable)

Export tax (if applicable) and customs processing fee

Export customs clearance

Insurance of the merchandise until its delivery to the customer according to the agreed
INCOTERM.

Payment Methods: In international trade there are several ways to make or receive
payments for goods. The selection of the payment method can be adjusted by the
greater or lesser level of experience and trust that the parties have reciprocally, when
they have had the opportunity to trade with each other on repeated occasions and,
therefore, know its seriousness in fulfilling its commitments, as well as its moral and
economic solvency. Letters of credit and electronic transfers are the most secure.

Marketing Strategies: Its objective is to define specific strategies for each unit of strategic
activity, taking into account its differentiated positioning, focused on two dimensions: the
attractions of the reference market and the positions maintained in each product.

Negotiation Process and contracts: The international contract is the agreement of will
between two or more parties, as well as a source that generates rights and obligations,
which arises when the parties have their establishment in different states, that is, one
party makes an offer and the other party, abroad, expressly accepts it, and makes said
acceptance known to the other party, in a timely manner, or vice versa. The object of the
contract must relate to lawful commercial matters (goods or services). This agreement of
wills may or may not be written. However, it is recommended that it be formalized in
writing, either in handwritten or printed form, with handwritten and executable signatures
in the country of destination of the merchandise, subject to a mediation and arbitration
scheme for dispute resolution.

Non-tariff regulations for trade: Sanitary, phytosanitary and zoosanitary standards: These
standards are intended for the protection of human, animal and plant life and health,
through the control of pests, diseases and toxins of animals, plants and food.

Export Incentives: Most governments offer incentives and benefits to those companies
that participate in foreign trade. These range from support services to foreign investors,
subsidies, property protection and even tax exemptions.

9.4. FOOD PROCESSING

Mexican laws establish the minimum requirements for food processing. Process is
understood as the set of activities related to obtaining, processing, manufacturing,
preparing, preserving, mixing, conditioning, packaging, handling, transporting,
distributing, storing and selling or supplying food to the public.

For this, there is the Official Mexican Standard NOM-251-SSA1-2009, which establishes
the minimum requirements for good hygiene practices that must be observed in the
process of food, beverages or food supplements and their raw materials in order to avoid
contamination throughout the process. of your process.
This Official Mexican Standard is mandatory for natural or legal persons who are
dedicated to the processing of food, beverages or food supplements, intended for
consumers in national territory, and is complemented by the applicable legislation for the
use of water for consumption and labeling and commercial information.

Illustration 9: The highest standards must be met in food processing.

The relevant points of the standard were described in the section on the legal framework
applicable to supply centers. And regarding their operational structure, these projects
must be supported by people specialized in the implementation of food safety and quality
management systems, who will serve not only as a liaison with the authority, but with the
merchants who must carry out these tasks. .

9.5. ADDED VALUE PROJECTS (SOCIAL AND ENVIRONMENTAL

RESPONSIBILITY)

The concept of Social and environmental Responsibility is very diverse, but there is a
general consensus that business projects that lack them do not have the complete
approach of responsible administration. This is relevant since supply centers have been
stigmatized in the last year as pollution generating centers, where social inequality is
prevalent.
Although social and environmental responsibility is generally understood as those
business behaviors based on ethical principles and transparency, which include
continuous improvement in the relationship with the entire society that surrounds it and
care for the environment by limiting its polluting capacity.

A socially and environmentally responsible supply center is one that provides the market
with products and services that, to one extent or another, tend to improve people's
quality of life, above their mere commercial or business desire. These products and
services have direct social and environmental applications, and can be derived from the
good practice programs presented in this study. Such is the case of an additional effort in
the control and management of garbage, the elimination of sources of contamination and
the provision of differentiated collection and separation mechanisms, the elimination of
harmful fauna and the control of street hawking and begging.

Although a social and environmental responsibility scheme must be based on standards

to be a candidate for recognition, as a general rule, the management of social and
environmental projects arises from a personal or union initiative. However, this does not
ignore the need to establish parameters of action and assign levels of recognition of
achievements, in order to generate incentives and motivation in the union.

Some aspects that must be considered in the application of social and environmental
responsibility projects are the following:

• Social responsability
• Commitment and general policy
• Fight against discrimination
• Equal opportunity in hiring
• Equal Employment Opportunity
• Social management programs
• Compliance with salaries and benefits
• Conditions of employment
• Occupational health and safety
• Environmental responsibility
• Environmental Management Plan
• Compliance with official regulations
• Equipment and facilities maintenance
• Incident Management
• Internal audits
• Investigation of third party complaints
• Corrective actions

9.6. PRELIMINARY CONCLUSIONS

• The operation will depend on the corporate purpose and the interests of the
members of the organization.
• The administrator is the key piece that links the management part with the
executive part of the organization.
• Supply centers can seek sustainability through the development of projects
 10. DESIGN OF THE OPERATIONAL ELEMENTS IN THE SUPPLY CENTER

The operational elements are the appropriate complement to the infrastructure,

organizational and improvement initiatives of the supply centers. Finally, any initiative
must be operated with resources, from human to financial resources. And in many cases,
these are scarce or simply not available, and the administration of the supply center must
take into account that any change initiative will not prosper if it does not have the main
operational elements.

Many of these resources must be managed by supply centers, since, sometimes, despite
having them, they are either not enough or obsolete. In many cases, the administrator of
the supply center or the board of directors must face unplanned human resource
structures for the development of the center itself, but neither should they get rid of all
the personnel, since capitalizing on the experience It is one of the best strategies to
strengthen the function of supply centers.

Organization of human, material and financial resources for the effective and efficient
achievement of organizational objectives.

10.1. ORGANIZATION OF HUMAN RESOURCES.

It is general knowledge that the organization of human resources must be carried out in
such a way that by determining the quality and number of people necessary to develop
the plan and the moment in which they must be recruited, the increase in income that will
be obtained can also be determined. will obtain when hiring each new employee and of
course, the effect that this recruitment has on operating costs.

Therefore, the administration of the supply center must consider an internal restructuring
before starting an active personnel hiring process. Using available talent is much more
effective than assigning new personnel, sometimes due to the time it takes to update
new executives on the policies and programs in place at the supply center.

In general, an administrator of a supply center already has elements that allow him to
determine his short- and long-term personnel needs. The advantage of planning human
resources lies in:

• Improve utilization of current and future human resources

 • Allow the efforts of the personnel department to coincide with the global
objectives of the organization.
• Save on hiring and extend staff rotation periods
• Expand the personnel database to support other areas of development
• Contribute to the implementation of productivity programs , through the
contribution of more trained personnel.

The future demand that an organization experiences in the field of human resources is
essential for planning employment policies , since the supply of personnel has very
precise limits . In a supply center, in principle, this demand is oriented towards
professionalization. It is very common to find organizations that have highly experienced
personnel, but little academic training. The current requirements are that, if a supply
center does not have specialized personnel, some matters such as fiscal, commercial or
compliance with regulations, can cause the organization to fall into breaches of legal
order.

The reasons why the administration of the supply center establishes the need for a
recruitment or personnel restructuring program may be diverse, but the most relevant
are:

Economic: the reallocation of a current spending budget in the administrative operation.

Social, political and legal challenges: particularly, those designated by the board of
directors or board of directors.

Technology: the adoption of new communication systems or technological platforms for

data exchange.

Competition: increasing the efficiency and profitability of internal administrative

processes or programs in place.

Organizational decisions: the simple change of board of directors or the departure of

current officials

The strategic plan of the organization: it is the most recommended, since this strategic
plan identifies the profile of the people who should be in charge of the projects in the
future, for their best performance.

These objectives determine the number of employees that will be needed in the future,
as well as their characteristics. In the short term, these restructuring plans are made
operational in the form of a budget. Increases or cuts in budgets constitute the most
important short-term influence factor on human resource needs.

New projects always translate into changing demands for human resources. A
reorganization can radically change the needs of human resources, if the priorities of the
administration of the supply center and the plans of the board of directors or the board of
directors in turn are considered. Likewise, job design varies the qualifications that need
to be asked of future employees or the versatility in adapting existing employees to their
new assignments.

Changes in the workforce (retirements, resignations, layoffs, deaths and furloughs) can
also be seen as opportunities for restructuring or relocation of the workforce, especially
when absences open up spaces in positions that can offer growth to the employee. . The
experience obtained on previous occasions can serve as an indicator for the action that
must be taken for job growth, taking into account the appearance of factors that could
suggest the convenience of changing past practices that affect the good performance of
administrations, such as favoritism, nepotism, the formation of internal groups, among
others.

Short-term plans are more specific and may take the form of a hiring schedule (which is
a list of short-term hiring needs, that is, in periods of time no longer than one year). It can
be made up of specific numbers or approximate levels of need based on identified
workloads. They are very useful approaches, which allow administrators in charge of
supply centers to address the most immediate personnel needs, and indirectly constitute
a highly valuable instrument to maintain the image of the department at an optimal
degree of efficiency.

Currently, the hiring of temporary or professional personnel in fee-like schemes similar to

salaries solves most of the short-term personnel needs, without the need to establish
more important work commitments.
The recruitment of human resources arises once the short and long term future demand
has been evaluated. In this way, the personnel department proceeds to fill the vacancies.
There are two sources of personnel supply: internal and external. The internal supply
consists of current employees who can be promoted or transferred or who can absorb
the functions that need to be filled. External supply consists of the supply of labor from
outside the organization

The project managers and the supply center administrator would try to classify the
human resources present in order to know their competencies. This information allows
you to tentatively predict which vacant positions can be filled with current employees.
The information generated allows you to identify potential promotions or human
resources inventory . Considering current employees for new opportunities gives
employees confidence that they can advance. The lists of potential promotions
summarize the knowledge and skills of employees, and provide an analysis instrument
for the evaluation of the human potential that the organization has. This part of the
recruitment generates very valuable information for the members of the board of
directors and the members of the merchant organizations, as it can help identify support
resources in future projects. These elements can be systematized into a potential
replacement table, which is a visual representation of the specific replacement
possibilities within an organization.

What is relevant about this analysis is that, in the short term, a vacancy that cannot be
filled through internal promotion requires external hiring. However, not promoting
employees, such as making public the information of those who can and cannot be
promoted, are very sensitive schemes, so they must be subject to the confidentiality of
managers and decision makers. Obviously, those people with limitations for promotion
must be replaced as soon as possible.

However, it is not possible to fill all vacancies through internal promotions. In some cases
there is not the right person, or because the position is entry level (basic level). In both
circumstances it is necessary to resort to external sources of supply.

The growth of the administrative structure of the supply center and the development of
new projects constitute the main factor in the creation of entry-level positions, especially
in companies that encourage internal promotion of their personnel. Success in locating
new employees depends on the labor market, but also on the skill of specialists in
identification, location, invitation and recruitment.

After evaluating the supply and demand of human resources, it may be necessary to
make some adjustments. When the internal supply of employment exceeds the demand
of the administration of the supply center, there is an excess supply of human resources.
Most organizations respond to this situation by freezing hiring, preventing the personnel
department from filling available vacancies through external hiring, and proceeding with a
relocation policy . The normal process of leaving employment slowly corrects this
situation.

Managers must then appeal to external resources and locate new employees. In the long
term, your plans can be more flexible and reinforce your actions leading to employees
developing the knowledge, experience and skills that allow promotion through training.

The human resources plan is a fundamental piece of the organization's human resources
information system. The information contained in the plan serves as a guide for
recruiters, trainers, development planners and other specialists. By knowing what the
needs of the organization are, all staff can act in line with the defined objectives and
perceived changes. Armed with information about future job creation, job content, and
analysis, the human resources professional can staff his or her organization efficiently
and effectively.

However, the human resources administrator must understand that one of the means
that has most encouraged the development of these resources are the advances
achieved in training and the development of internal skills, which is aimed at determining
the human capabilities and potentialities to channeling towards the positions that people
can perform, making the most of the skills and abilities of each individual.

10.2. ORGANIZATION OF MATERIAL RESOURCES

The planning of material resources in a service-providing organization, such as a supply

center, may seem simple, since there is no production plant for consumer goods.
However, this does not mean that the administrator of a supply center omits this relevant
component, since even the provision of material resources for the operation of office
activities can be a relevant obstacle in achieving the plans and objectives of the projects
underway.

An administrator of a supply center must take into account that he or she is responsible
for the operation of the following:

• Facilities: buildings, grounds, warehouses, hallways, platforms and public roads.

• Equipment: cleaning, transportation, communication and office equipment
(furniture,
computer equipment and administrative tools). In some cases, some
concessioned services, such as garbage collection, include the management and
maintenance of specialized equipment.

• Service provision materials: office consumables, promotional items, information

materials.

The objective of the organization of material resources is their optimal use, to obtain
effective economic profitability and the provision of necessary inputs for the development
of new or ongoing projects.

In the planning of the facilities, the administrator of the supply center has little to
contribute, except in the maintenance plans and use of the available spaces in the
buildings. It should be remembered that more than 90% of the supply plants are facilities
designed and built in the 1970s. And new projects, although they include the
maximization of spaces and a better location based on the needs of the new plants,
administrators rarely have the opportunity to participate in the design and
conceptualization of said projects.

But, on the contrary, the administrator must consider the maintenance and space use
plans. To do this, there must be a major maintenance plan, emergency maintenance and
work that is considered public, with the corresponding government support. The space
utilization plans are mainly in the identification of new service areas (mainly parking lots)
and advertising use. For its part, to select a specific piece of equipment to support the
work of the supply center, it is first necessary to know what the service development
process is going to be, for which the equipment is going to be used or put into operation.

In materials planning, historical purchases are considered, information that is available in

the organization's accounting records. Warehouse inventories (duly audited) and
inventory control, with physical surveys of the same. Once the purchasing factors have
been defined, the quality of the purchase, the quantity (if the establishment of strategic
inventories is required, or the purchase in volumes, but partially supplied by the supplier),
the time in which the Purchase must be made, so that these factors impact the price
offered by suppliers, to obtain the best negotiation.

Through the proper application of a materials handling system under industrial indicators,
it is possible to reduce costs by increasing the efficiency of the same system in the
movement of materials. This results in a reduction in unproductive time in production
processes, thanks to faster movement and handling of materials, reduction in human
fatigue, reduction in idle time of equipment in the provision of the service, increased
safety in the handling of materials by reducing the intervention of the human factor and,
consequently, the reduction in damage or waste, and, where appropriate, the saving of
storage space.

Effective inventory control ensures adequate quantities of materials are available to meet
operational demands at the lowest possible cost.

Within the organization of material resources, in the case of service organizations such
as supply centers, there is the planning of technical and technology resources. This type
of resources is currently being given its due importance since it is observed that the
dimensions of the supply centers have undergone considerable changes in their
structure in recent years, which is mainly due to the realization of a greater diversification
of services provided to partners and users.

For its part, traditionally, technological resources have been acquired from abroad, with
the usual sale of technology, knowledge and experience different to the Mexican
business environment, but with negative implications for users. Before starting a process
of adopting a technological platform, it is advisable to run a small diagnosis to know,
among other things, the modifications to the facilities' electrical power lines, the
availability of maintenance and spare parts with local suppliers, the ease or friendliness
of the communication interface with the user and the user's knowledge of technological
networks. This can help eliminate the need for modifications, changes, or additional
training that would be expected from an effective executive with skills in technological
mechanisms.
 10.3. ORGANIZATION OF FINANCIAL RESOURCES

In relation to financial resources, it is necessary to determine what the needs will be in

quantity and quality of each type of resources, and their distribution for each period.
Financial resources refer to the economic and monetary resources that the supply center
needs to carry out its activities. In financial resource planning, it is necessary to
determine: the financial needs of the organization, define how they originate (or acquire)
and what will be the allocation (or application) of such resources.

Good functioning is essential for the success of any financial project. Through budgets, a
financial model can be used to make projections of the amount of money that will be
available and how much the formulated plans require. The estimates for this budget are
prepared once the other estimates have been determined, especially in the case of
supply centers, operating expenses and project execution.

The main purpose of the financial budget is the advance estimate of the income and
expenses that the company will have in a given period. In addition, it helps to determine
the amount of working capital necessary
for various activities. Likewise, the degree of external financial support may be
determined, the time and method of payment of obligations incurred, the possibilities of
having funds available for the purchase of equipment, the degree to which capital is
conserved in investments p production and the periods of cash availability and also its
scarcity. The above is considered among the main benefits that can be obtained from
estimates and financial budgeting.

If the cash derived from operations anticipated from revenue is insufficient and loans
cannot be obtained, it is necessary to review the nature of the projects so that financing
is appropriate to the specific circumstances.

It can be said that choosing the financing means that suit the organization constitutes an
important decision in the planning process and should be based on a careful study of the
circumstances and its projection or future. There is no rigid and strict rule for selecting
the financing medium. The costs related to financing must be taken into account; When
you try to obtain loans on economic bases, it happens that the least expensive ones
imply restrictions or contain undesirable requirements.
Once the need for financial resources and the way to obtain them has been determined,
it is pertinent to know that such resources will be applied and that adequate and periodic
monitoring is carried out in the shortest possible time, to determine their correct
application, in addition of the internal and external audit that must be applied to ongoing
and completed projects.

Relationship of the organization with its external environment and responses to the
needs of society. Factors that influence the administrator's environment.

The administration of an organization such as supply centers is based on systems that

interact with their specific environments, and that seeks to identify the components in
both specific and general environments. Among them, various figures stand out as key to
the healthy performance of supply center operations:

Providers. The suppliers of an organization as complex as the supply centers, include

those that provide services, supplies and other actions, either directly to users in the
facilities of the supply centers, or through their administrations. Here we find banks,
insurance companies, investment funds, security and transfer of securities, collection
services, and general services to society (food and recreational, and health services,
among others). The administration of the supply center tries to ensure a continuous flow
of the services that are needed, at the lowest possible cost . These inputs represent
uncertainties, because their lack of availability or delay can greatly reduce the
effectiveness of the organization, so it is common for management to make great efforts
to ensure their continuous flow.

Competitors: It is clear that no supply center can afford to ignore its competitors. When
they do, they pay a high price. Competitors can be seen from the point of view of prices,
service offering, acquisition of new products and similar. They represent an important
environmental force that the administration must verify, prepare and respond with
strategies to serve the consumer public or generate favorable business environments.

Governments: federal, state and municipal influence what supply center organizations
can or cannot do. Certain organizations, by virtue of their activities, are controlled by
specific government agencies. For example, trusts for the administration of complete
supply centers or the facilities where they operate. Organizations spend a lot of time and
money to comply with government regulations, so their knowledge and dynamism is
favorable.

Opinion groups: Supply center administrators cannot fail to recognize the existence of
special interest groups that try to influence the actions of organizations. These influences
consist of simply threatening some organizations in order to get their administration to
change or adopt their policies . As social and political movements change, so does the
power of pressure groups. Managers must be aware of the power these groups can exert
over their decisions.

Price levels: the input part of a company is clearly influenced by changes in price levels.
If these rise quickly enough, disruptions in the economic environment, both in input and
production, can be serious. Inflation not only unbalances companies, but also distorts all
types of organizations due to its effects on the costs of labor, materials and other items.

Information technologies: One of the factors with the greatest effect on the environment
is technology.Science provides knowledge and technology uses it. The term technology
refers to the sum total of knowledge of the ways of doing things. Some benefits of
technology are: increased productivity, higher standards of living. More rest time and a
greater variety of products. An example of how the technological environment affects
administration can be found in office design. These have become a communications
center. Management can now link their computers, telephones, word processors ,
copiers, fax machines, file storage and other office activities into an integrated system
that can be controlled remotely.

In any classification of environmental elements that influence a manager, it is extremely

difficult to separate social, political and ethical means. The social environment is made
up of attitudes, desires, expectations, degrees of intelligence and education, beliefs and
customs of the people of a given group or society.

These environmental elements are difficult to study and understand, to predict so that the
administrator can anticipate and prepare for changes.

That is to say, the administration of the supply center must adapt its practices to the
changing expectations of the society in which it operates. As values, customs and tastes
change, so must administration. This applies to both its products and service offerings
and its internal policies . A recent example of social conditions that have had a significant
impact on the management of certain organizations includes changing career
expectations for women and the aging workforce.

Inflation, the women's movement , and the increase in the divorce rate have contributed
to the dramatic increase in female labor participation rates. Today, more than half of all
adult women are gainfully employed outside the home. Banks, automobile manufacturers
and women's clothing manufacturers find that their market is changing as women's
career expectations change; they want more credit, cars that fit their new lifestyle, and
business clothes.

Management has also had to adjust its internal organizational policies due to the
increase in the number of women working. Those organizations that do not offer child
care centers, for example, may lose in their efforts to hire competent employees.

Political conditions include the general stability and security environment in which a
supply center operates and the specific attitudes that elected government officials have
toward the role of business in society. The political environment, attitudes and actions of
legislators and political and government leaders change with the ebb and flow of social
demands and beliefs. Government affects virtually every business and every aspect of
life. In relation to business, it plays two main roles: it encourages it and it limits it. For
example, it does the former by stimulating economic expansion and development,
providing administrative assistance for small businesses, subsidizing certain industries,
offering tax breaks, supporting research and development, and even protecting some
businesses through special tariffs .

Every manager is surrounded by a tangle of laws, regulations and jurisprudence, not only
at the national level but also at the state and municipal level. Some are made to protect
workers, consumers and communities. Many are intended to regulate the behavior of
managers and their subordinates in business and other enterprises. Numerous laws and
regulations are necessary, although many become obsolete. But they represent a
complex environment for all managers, because they are expected to know the legal
restrictions and requirements applicable to their actions. Therefore, it is understandable
that administrators of all kinds of organizations, especially in business and government,
have a legal expert close to them to make decisions. Perceptive warehouse managers
must not only respond to social pressures but also need to anticipate and address
political and even potential legal issues. Performance of certain specific functions such
as determining objectives, planning, allocating resources, implementing, etc.

Strategic planning should be the tool par excellence of the administration of the modern
supply center, consisting of the search for one or more competitive advantages of the
organization and the formulation and implementation of strategies allowing the creation
or preservation of its advantages, all of this depending on the Mission and its objectives,
the environment and its pressures and the available resources.

It is a commitment, on the part of management, to study the future of the markets to

determine which services should be aggressively promoted, which should be retained
and which should be abandoned, and to establish priorities in the direction of the
development of new and better services.

By clearly identifying the future role of each element of an organization, strategic plans
offer a method for coordinating activities across all basic functional areas. Strategic
planning is long-term planning, which focuses on the organization as a whole. The long
term is usually defined as a period extending approximately five years into the future.

The key tool in strategic planning is the analysis of Strengths, Weaknesses,

Opportunities and Threats, or SWOT. To achieve a better understanding of this concept,
its components are explained.

Strengths. They are those characteristics of the company that facilitate or favor the
achievement of organizational objectives.

Opportunities. They are those situations that arise in the company's environment and
that could favor the achievement of organizational objectives.

Weaknesses. They are those characteristics of the company, which constitute internal
obstacles to the achievement of organizational objectives.

Threats. They are those situations that arise in the environment of companies and that
could negatively affect the possibilities of achieving organizational objectives.
If we group those concepts, two components are internal in nature: "strengths and
weaknesses." While the other two components are of an external nature to the
organization: "opportunities and threats."

The SWOT analysis aims to answer the following questions:

Regarding the supply center:

What strengths does my organization 's operating system have that could facilitate the
achievement of objectives?

What weaknesses exist in my organization that could be serious obstacles in achieving

objectives?

Regarding the environment:

What situations or conditions exist in the market or environment that could favor the
company in achieving its objectives?

o What situations or conditions are occurring in the market that could represent an
external danger or obstacle to achieving the objectives?

The collection of data relating to the external and internal environments provides the raw
material for drawing a picture of the organization's environment.

The SWOT analysis aims to evaluate the internal strengths and weaknesses of an
organization, as well as the opportunities and threats present in its external environment.
Likewise, this analysis aims to isolate the main problems that an organization must face
through a detailed analysis of each of the factors. Managers will then be able to
formulate strategies to resolve key problems. These questions can help you perform a
SWOT analysis, but you need to work hard to put them in their real perspective and
resolve them properly. For example, the analyst must evaluate the relative importance of
each problem, as well as its potential impact on the company and its strategy.
Furthermore, the priority or relative importance of each problem area may vary
depending on whether strategies are formed at the company level, at the functional area
level, and at the corporate level.
From what has been stated so far, the "SWOT" analysis allows us to:

• Determine the real possibilities that the company has to achieve the objectives it
had initially set.

• That the administrator of the supply center becomes aware of the obstacles he
will have to face.
• Allow positive factors to be exploited more effectively and neutralize or eliminate
the effect of negative factors.

From the result generated by the SWOT analysis, one of the following possibilities may
be found.

Maintenance of the objective: The objective remains as it had been established in the
beginning, because the analysis of the positive and negative factors indicates that it is
concretely possible to achieve it.

Review of the objective: The analysis of one or more strengths or opportunities that had
not been initially considered, gives the possibility of modifying the objective, to establish
it at more ambitious levels.

The analysis of one or more weaknesses or threats not initially considered: leads to
modifying the objective to establish it at lower, less ambitious levels.

Invalidation of the objective: The analysis of one or more weaknesses or threats that had
not been considered initially, makes it clear that these are of such magnitude (or
impossible to solve), that they will prevent the achievement of the initially established
objective and, consequently, it is necessary to invalidate it. and formulate a totally new
objective more coherent with the real situation of the organization.

Planning deals with the perspectives of current decisions. This means that strategic
planning observes the chain of consequences of causes and effects over time, related to
a real or intended decision that the general manager will make. The essence of strategic
planning consists of the systematic identification of opportunities and threats that arise in
the future, which combined with other important data provide the basis for a company to
make better decisions in the present to take advantage of opportunities and avoid
threats. .
Strategic planning is a process that begins with the establishment of organizational
objectives, defines strategies and policies to achieve these objectives and develops
detailed plans to ensure the implementation of the strategies and thus obtain the desired
ends. It is also a process for deciding in advance what type of planning efforts should be
done, when and how they should be done, who will carry them out, and what will be done
with the results.

To achieve better results, managers and staff of a company must believe in the value of
strategic planning and must perform their activities as best as possible. A formal strategic
planning system unites three types of basic plans, which are: strategic plan (long-term);
tactical plans (medium term) and operational plans (short term).

The importance of strategic planning for managers and organizations has increased in
recent years. Managers find that by defining the mission of their companies in specific
terms, it is easier to give them direction and purpose, and as a consequence they
function better and respond better to environmental changes.

Strategic planning helps us acquire a very clear concept of our organization, which in
turn makes possible the formulation of plans and activities that take us towards
organizational objectives. There are several representative events that have increased
the importance of strategic planning. Below are the aspects that have made this type of
planning important.

10.4. DETERMINATION OF THE MISSION/REASON FOR BEING.

As the first part of the process, the mission is defined. That is, the "reason for existence"
of the company, management or department. The mission represents the last and
highest aspiration towards which all efforts must be directed.

Mission planning means the highest goal for a company. Although the mission does not
occupy more than five or ten lines, its determination requires proportionally more time
than the other stages of the planning process, especially when a public company
formulates it for the first time. There are no purposes, goals and objectives beyond the
mission. Therefore, the mission can be described as the goal or purpose pursued by an
organization. If there is no clear mission, planning lacks the axis around which strategies,
tactics, etc. revolve; and, one cannot even speak of a planning system, since its starting
point is omitted.

The mission of a public company is often the answer to how a given organization can
effectively contribute to the goals of the public interest. To determine the content of the
mission, the managers of a public company must confront:

• A large number of influence.

• Groups of influencers with contradictory objectives.
• Abstract objectives with little operational value.
• Determination of Strategies.

To achieve the mission, strategies must be established. They are the great paths in
terms of markets, products, productivity, profitability, administration/organization,
technology, specific by planning unit, whose combined achievement in turn ensures the
achievement of the mission.

The sum of the strategies in value is equal to the mission. Strategies are the first level of
mission realization; They answer the question: How to make the mission operational?
Certain strategies may be more important than others, however, all strategies must be
carried out to fully achieve the mission.

In most planning systems, strategies are not quantified, which turns them into simple
recommendations of a non-obligatory nature. Planning is simplified and better results are
obtained if strategies are valued, that is, if pure objectives are brought together with pure
strategies. Quantification refers to money, units, geographic regions, time and
percentages.

The areas for which strategies most frequently need to be formulated are the following:

• Products/services
• Markets/customer.
• Competence.
• Productivity/production
• Administration/organization.
• Technology/innovation.
• Specific by planning unit.
 • Determination of actions.

Each strategy has to be divided into a series of actions. Just as it is essential to quantify
the techniques for strategies, the sum of a package of techniques must add up to the
corresponding strategy. The sum of all actions must be equal to the sum of all the
strategies reflected in the planning. Actions are activities aimed at achieving quantified
strategies.

The actions result from the analysis of the environment (opportunities and problems) and
capabilities (strengths and weaknesses). It is advisable to create a framework of
environmental concepts, such as the following:

• Current market and behavior of the competition.

• Complementary and replacement market.
• Market of supply.
• Factors economical.
• Factors labor.
• Factors ecological.
• Factors politicians.
• Factors social.
• Factors financial and fiscal.
• Factors technological.
Environmental factors influence the company without the company being able to
influence environmental factors. The factors can have a positive or negative influence.
When a positive impact is expected, it speaks of opportunities. Opportunities seek to
generate a positive factor in the environment, which helps the planning unit in achieving
its objectives and strategy, if it properly takes advantage of the opportunity.

Environmental factors, since they are internal factors of the company and, consequently,
under its control. Capabilities can have a positive (strengths) or negative (weaknesses)
influence. First of all, a list of both weaknesses and strengths must be drawn up again, in
order to arrive at the definition of tactics.

Actions now answer the question: How can we maintain or increase a strength and how
can we decrease or eliminate a weakness? To do this, you must take into account:
Force. It is a positive and characteristic characteristic of the planning unit. You have
complete control over nature. With respect to management by objectives and strategies,
a force helps in achieving them.

Weakness. It is a negative and characteristic characteristic of the planning unit. Over the
weakness of he has complete control. With respect to management by objectives and
strategies, a weakness prevents or hinders their achievement. In the next phase of
concretization; actions are transformed into projects. Projects are a set of activities
aimed at carrying out one or more actions. The actions serve as a link with the projects,
which means that the projects are one more stage in the work of concretizing the reason
for being.

All planning is based on assumptions whose realization is expected in the future. This
means that the achievement of any objective is subject to a certain degree of uncertainty.
Without this phenomenon we do not need the help of planning, since any objective could
be achieved. It is known that uncertainty cannot be totally eliminated. However, there are
two techniques that can reduce it. To the extent that the collection of information and its
interpretation is improving, the degree of uncertainty can be lowered. The objective can
be achieved with greater probability, as long as a series of alternative paths are foreseen
in the planning, before implementation. In most cases, these alternatives are nothing
more than a modification or addition of tactics and projects.

The elements of alternative planning can then be defined as planning auxiliaries that are
needed when the achievement of the objective is in danger due to situations ignored in
basic planning.

Performance of various interpersonal, information and decision-making roles within the

company.

For the competitive administrator in supply centers, some minimum necessary skills must
be considered that allow them to carry out their tasks with greater certainty and
effectiveness. They stand out among them:

Technical Skill: It is the knowledge and expertise to perform activities that include
methods, process and procedure. Therefore, it represents working with certain tools and
techniques, for example, mechanics work with tools and their supervisors must have the
ability to teach them how to use them.

Human Skill: It is the ability to work with people: it is cooperative effort: it is teamwork : it
is the creation of an environment in which people feel safe and free to express their
opinions.

Conceptual Skill: It is the ability to see the whole image , recognize the important
elements in a situation and understand the relationships between them.

Design Skill: It is the ability to solve problems in such a way that the company benefits.
To be efficient, particularly at higher organizational levels. Managers must be able to be
more than just seeing the problem. They also need to have the skill of a good design
engineer to find a practical solution for it.

All administrators are required to perform functions that have a ceremonial and symbolic
nature . When a university president presents diplomas at a graduation, or a
manufacturing supervisor accompanies a group of high school students on a plant tour,
they act in a role of representative and figurehead. All managers have a leadership role.
This role includes hiring, training, motivating, and disciplining employees. The third role
within the interpersonal grouping is that of liaison. This activity was described as
contacting external sources that provide information to the administrator.

These sources are individuals or groups outside the manager's unit and can be found
inside or outside the organization. The sales manager who obtains information from the
personnel manager in the same company has an internal liaison relationship. When that
sales manager has contact with other sales executives through a marketing trade
association, he or she has an external liaison relationship.

All managers, to some degree, receive and capture information from organizations
outside their own. This is usually done by reading magazines and talking to other people
to learn about changes in public tastes, what competitors may be planning, and the like.
This was called the monitoring or surveillance role. Managers also act as a conduit for
transmitting information to members of the organization. When they represent the
organization to strangers, administrators also play the role of spokespersons.
As entrepreneurs, managers initiate and supervise new projects that will improve their
organization's performance. As disturbance managers, they take corrective action in
responses to previously unanticipated problems. As resource allocators, managers are
responsible for allocating human, physical, and monetary resources. Finally, managers
serve as negotiators when they analyze and negotiate with other groups to obtain
advantages for their own units.

10.5. I NSTITUTIONAL VALUES OF MANAGEMENT

Administration, of an eminently social nature , is governed by a series of values that

provide it not only with moral validity in the eyes of the population, but also with ethical
information that should guide the conduct of the administrator in society.

It is worth remembering at this phase the institutional values of the administration,

namely:

Social: These are the most important, since they contribute to the well-being of society
through:

• The improvement of the quality and price of the product and/or service to
adequately satisfy the real needs of human beings.
• The improvement of the socioeconomic situation of the population.
• Compliance with fiscal obligations that allow local and federal governments to be
supported.
• Avoid unfair competition .
• The promotion of development through the creation of sources of work.
• Increase and preserve the natural and cultural wealth of society.

Organizational: Those that tend to improve the organization of the resources available to
the social group, and that tend to:

• Promote technological innovation, research and development.

• Optimize the coordination of resources.
• Maximize efficiency in methods, systems and procedures.
• Reconcile interests between different members of the social group.

Economic: These are those that are aimed at obtaining economic benefits and can be:
• Generating wealth
• Maximizing profits.
• Properly managing financial resources.
• Promoting the economic development of the social group.
• Promoting investment.
• Preliminary conclusions
• Operational elements are the main tools available to the administrator

• They promote with the administrator a process of continuous personal and

institutional improvement
• Managers appreciate their managers for the value they add to their processes, not
for the work performed
 11. BUSINESS PRACTICES AND DISPUTE RESOLUTION SYSTEMS

One of the great challenges in the administration of supply centers and in the
development of market activities is the lack of mechanisms that expedite the resolution of
disputes. This is important because, like the population in general, legal mechanisms
offer a high cost and long time scheme for resolution, coupled with the fact that in
practice, the execution of the legal resolutions offered by the courts are not always
enforceable. , due to the existence of the right of protection, in addition to legal resources
in favor of the defendants, who can request review, revocation, annulment and second
instance review of the process, lengthening the procedural time.

Therefore, in this last component of the study, the aim is to review the experiences of
merchants and administrations in supply centers in the resolution of disputes and the
mechanisms that are available to assist them, as an optional route that has with the
recognition of the Mexican judicial system, and that, although it requires improvement, it
already offers practical solutions to the problems faced by merchants.

The daily commercial practice faced by a merchant and documented by the National
Agricultural Council in Mexico is taken as a basis. According to their studies, it was
revealed that:

• 72% of fruit and vegetable sales are made by granting credit to the customer.
• 36% of credits are granted on the word of the client or buyer.
• 65% of credit sales provide credit for 50% or more of the value of the sale.
• 54% of credit sales operations present collection problems.
• 60% of buyers are reluctant to provide information that allows them to evaluate
their
payment capacity.

It can be seen that it is useless to make all the effort to obtain quality production, certify
the safety of the products and present them to the national or export market if buyers do
not honor their payment commitments in accordance with the delivery commitments of
the products. merchants, in volume and quality.

Typically, merchants do not have liquid resources to meet operating expenses and rely
heavily on timely payment from their customers. When problems of this type arise,
companies in the wholesale sector resort to ineffective solution mechanisms with
uncertain results, such as personal collection, seeking a negotiator or representative, and
seeking help from official institutions. In general, they assume the cost and seek to
recover at the next opportunity.

In this sector, legal and court support is also very ineffective. Virtually no company can
carry out and subsidize trials for 3 or 4 years, paying lawyers and attending to legal
proceedings, especially when in Mexico the amparo remedy applies in favor of the
defendant. Once payment is not received, the particular merchant is left in a very difficult
position, as merchants have to settle their commitments to suppliers, employees and
creditors.

The only way for merchants in Mexico to have a real and fundamental competitive
advantage with their counterparts and users of their facilities in supply centers is to have
agile dispute resolution mechanisms under alternative schemes to judicial ones.

Problems faced by supply centers in Mexico for conflict resolution

The diversity, both in commercial activity and real estate use in supply centers, creates
the need to develop an accessible, effective and low-cost system, aimed at resolving the
controversies that inevitably arise in some of these operations. Considering this, one of
the structural barriers or impediments to making the carrying out of commercial activities
and the administration of these properties more efficient for the diverse range of users, is
the insufficient knowledge, access and use of Alternative Dispute Resolution Methods
(including mediation and arbitration) to resolve disputes arising from contracts and
transactions related to the use of commercial real estate.

Various studies have documented that economic globalization has had an impact on our
country in various ways. Today we find, with increasing frequency, transcendental
phenomena such as the proliferation of new commercial formats in the form of chain
stores, mega markets, hypermarkets, supermarkets, wineries, convenience stores,
membership clubs and shopping centers, and the expansion of self-service and
department stores through commercial alliances.

On the contrary, traditional retail businesses, such as grocery, grocery and

miscellaneous stores, continue to operate, but in disadvantaged conditions due to the
way in which large establishments carry out their operations in our country.
The conditions in which small establishments and large chains participate in the market
are inequitable, always to the detriment of small and medium-sized merchants, who
under the auspices of large self-service stores are displaced from the market through
unfair and unfair economic practices, their own of a monopoly and a monopsony.

Currently, micro, small and medium-sized merchants, suppliers of self-service stores,

face difficulties in operating due to the economic force of large commercial chains that
forces them to accept unilateral and disadvantageous conditions to remain in the market,
or, to close their businesses.

The growing participation of self-service store chains that concentrate demand and
achieve a greater share of the total value of the production sold, forces small producers,
farmers, ranchers, industrialists, among others, and their organizations, to resort to
strategies increasingly complicated to ensure that their products enter and remain in the
market of large commercial chains.

For their part, local markets, in which retail trade still prevails, are disappearing under the
pressure of unequal competition and the indiscriminate entry into our country of products
from other latitudes at lower prices.

Stores and commercial chains can play with techniques to lower prices for consumers,
generally due to the large volumes they handle, but also because they “punish” their
suppliers by forcing them to reduce their profit margins which, in many cases, lead them
to go bankrupt. , thereby altering the quality of life of the environment where they are
installed and the possibilities of small-scale activity and local occupation.

The fundamental problem that large commercial chains represent lies in the monopolistic
practices they carry out and in their purchasing strategies that include abusive contracts
with their suppliers who are forced to assume unjustified risk conditions in order to sell
their products to large retail chains. self-service, such as:

• Accepting payment in terms that are too long,

• Take full responsibility for transportation,
• Accept unjustified returns of merchandise,
• Accept payment for advertising and display shelves,
 • Accept the need to reduce the price of their products to intolerable levels, under
the threat of not being able to sell them in any chain or establishment.

Therefore, a legal regime is required that specifically addresses the interaction of

transactions between merchants, as well as between them and their suppliers, in addition
to establishing a minimum protection against abuses by large establishments or
commercial chains, thereby benefiting the consumer. final, which is currently harmed by
abuse or poor quality of the merchandise.

Imbalances between large and small commercial companies must be prevented,

contributing to the maintenance of free competition that benefits consumers,
consolidating markets with accessible and good quality products, through the promotion
of healthy commercial practices.

Merchants and entrepreneurs (especially small and medium-sized ones) reasonably see
the possibility of resorting to ordinary courts as an expensive, slow, unpredictable option
and often as a disincentive to make and execute contracts in the commercial and real
estate field. On the other hand, in cases where companies have disputes with their
clients, the high costs of the existing means of judicial settlement, arbitration, generally
force them to give up positions before starting the battle.

On the other hand, it has been documented that historically, when trade opening policies
were intensified, companies have been subjected to greater competition due to the
increase in the number of local and foreign players. Despite increased competition, many
companies have strengthened their position in the market and taken advantage of the
opportunities that arose to generate new business.

In the case of the food market, due to its importance, it was one of the most protected
and the products of this sector have taken longer to be incorporated into the general
market rules. For the same reason, it is in this sector where marketing practices have
been changing very slowly, with modern retail channels (self-service and supermarkets)
being the ones that have most influenced this to happen. In contrast, the practices
carried out by agents in traditional channels (supply centers, public markets, flea
markets) have observed very few variations.
This new condition requires commercial agents to change their activity to adapt their
practices to new schemes in which they will have to add some value that justifies their
intervention in the chain. Wholesalers, who until very recently were basically dedicated to
the intermediation of products, have had to assume a more proactive role, which has
implied expanding their intervention to other phases of the process, such as production
and distribution and delivery to clients, having to carry out activities in which they did not
previously participate.

Wholesalers that have adapted to the new circumstances and have been assuming
these new roles have not only managed to retain their market shares but have also
discovered new opportunities to add value and/or to generate new business. They have
also managed to differentiate themselves from their competitors, achieving, in many
cases, the preference of their customers. On the other hand, although the tasks to be
attended to have been expanding, a wide variety of tools are available that support
business activity, a result of the important progress recorded in communications and
information technologies.

On the other hand, it is reiterated that to the extent that the wholesaler becomes aware of
its position in the chain, it will become a triggering agent of change and will stimulate the
efficiency of the rest of the participants, which will facilitate the integration of value
chains.

That is why, among other aspects, constant training is necessary as an element to

strengthen their capabilities, in technical, operational, business aspects, among others.

The constant improvement of commercial practices, which contemplates aspects such

as: product management, packaging, information, traceability.

It is important to highlight that the work to be undertaken must be aimed at addressing

global trends in trade and reconverting the infrastructure taking into consideration the
logistics component, with which the supply centers could recover and strengthen their
position in the wholesale distribution of agri-food products.

Competitive and efficient commercial and business practices between different

commercial agents.
In the establishment of commercial contracts of various kinds, from those focused on the
commercialization of merchandise, especially those that have a limited shelf life,
commonly known as perishables, and in service contracts for the administration of
properties in charge of administrations. of the supply centers, it is necessary that there
are clear rules between the participants, so that their agreements can be fulfilled, both in
the delivery of the product or service and in the receipt of payment for the operation
carried out.

It is also common that, due to conditions beyond the control of commercial counterparts,
there are changes in the quality and presentation conditions of the product or service,
mainly due to the effect of supply and demand, or due to other aspects that cause
changes. in prices that can have a negative effect on the supplier's expectation of
product and services.

These changes and variable conditions typical of commercial contracts generate

disputes between the counterparties that participate in the purchase and sale of said
products. If we add this to the short time that many products, including food, can last
stored in warehouses, it is possible to realize the importance of these disputes being
resolved in the shortest time possible and at the lowest cost for the companies that are
related. with the controversy.

The basis and support of the private dispute resolution mechanism is international
commercial mediation and arbitration. This system is recognized and approved in the
three countries of the North American Free Trade Agreement, thanks to the UNCITRAL
International Convention on Commercial Arbitration of 1958, which makes it the only one
of its kind in North America.

There are at least two arbitration services in Mexico: the Mexico Arbitration Center and
the Arbitration Center of the National Confederation of Chambers of Commerce, Services
and Tourism. Both CAM and CANACO offer general arbitration services applicable to
almost any trade or service sector.

However, by not being specific, they have forced the creation of alternative dispute
resolution mechanisms, such as the one that exists in the financial sector (The National
Commission for the Defense of Users of Financial Institutions, CONDUSEF) or in the
financial sector. of medical services (Mexican Council of Medical Arbitration).

Meanwhile, disputes between companies are increasingly common in the new globalized
world in which we live, where business between companies that are located in different
geographic locations is increasingly common. However, the conflicts that may arise from
these commercial relationships can not only be resolved through conventional
mechanisms established by local courts, but on the contrary, the business world has
imposed the use of Arbitration as an alternative tool, to find solution to disputes arising
from trade, quickly, confidentially, consensually and by experts.

Given the benefits that arbitration as an alternative method to the traditional judicial
system has proven to have in commercial matters, it has resulted in even local
businesses deciding to implement this means as a way to resolve their conflicts and, for
this reason, that this system is the present and the future in terms of alternative methods
for the resolution of commercial and investment disputes.

Mexico is the country that, par excellence in Latin America, has been favored by the
parties and by various chambers, as a venue to carry out arbitration proceedings, not
only because of the importance of its commercial exchanges, but even for being a forum
that has always been favorable and friendly to arbitral jurisdiction.

Commercial exchange has experienced an intense change due to factors such as

technological advances in telecommunications, the decrease in the use of paper, the use
of world trade terms called INCOTERMS, the use of the Internet and very recently the
increasingly daily electronic commerce, for this reason the public and private sectors
have been forced to look for mechanisms that protect and promote said activity, finding in
alternative methods of dispute resolution an adequate way to solve these problems.

Thus, society and the government have found in mediation and arbitration ideal
instruments to promote commercial and economic development, providing security and
making agile the commercial transactions and businesses that are part of the daily work
of entrepreneurs, merchants and lawyers.

Due to globalization, in recent years competition between countries to attract foreign

investment has intensified as an option to strengthen their economies. In this sense,
Mexico has made reforms to its laws and administrative improvements, with greater
intensity in the last decade.

The Free Trade Agreements that our country has recently signed, as well as the
reciprocal investment agreements, have been essential elements to attract more
investments, providing legal security and certainty to both national and foreign investors
and simplifying the administrative procedures applicable for the registration of foreign
investments in Mexico.

One of the mechanisms included in these treaties and agreements to provide legal
security to national and foreign investors is commercial arbitration.

In 1971, Mexico ratified the 1958 New York Convention on the Recognition and
Enforcement of Foreign Arbitral Awards. And such has been the willingness of the
Government of Mexico to adapt the figure of commercial arbitration in its national
legislation, that as we know, the New York Convention contains the power to establish
reservations when it is adopted by a country, however, Mexico did not do so. use of that
right and consequently it is applicable throughout the Mexican Republic.

Only 5 years later in 1976, it ratified the Inter-American Convention on International

Commercial Arbitration, signed in Panama.

For this reason, in recent decades commercial arbitration has been present in the work of
national legislators, who have sought to include this legal figure in our legislation, and
there has also been a notable increase in contracting, in which a Mexican party
participates.

In July 1993, an initiative to reform and add various articles of the Commercial Code and
the Federal Code of Civil Procedures was presented to the Congress of the Union, which
in its explanatory statement indicates that commercial arbitration is frequently used for
the solution. of disputes between commercial entrepreneurs; mainly for those that result
from their contractual relationships, without excluding those that arise from
extracontractual relationships. The insertion of arbitration clauses in commercial
contracts and the use of arbitration trials has multiplied in recent decades.

Commercial arbitration has proven its usefulness for solving problems that do not receive
adequate satisfaction through traditional solutions of Private Law. In effect, the traditional
method consists of choosing which domestic system(s) should be used to determine both
the law applicable to the substance of the dispute and the forum in which it should be
aired. Today, this system is generally unsuitable for commerce.

Arbitration helps solve these problems. Indeed, by agreement of wills, the parties, or
where appropriate, the arbitrators, would determine the law applicable to the specific
relationship in question.

This initiative resulted in the inclusion in the Commercial Code, a Federal application
regulation, of an autonomous statute, which practically consisted of adopting the
UNCITRAL Model Law on International Commercial Arbitration of 1985. Thus, in Title
Four, articles 1415 to 1463, the figure of commercial arbitration in Mexico is fully
regulated. Said provisions will be applicable to commercial, national and international
arbitration, except as provided in the treaties to which Mexico is not a signatory party.

Notwithstanding the above, it should be noted that the Mexican Commercial Code, which
dates back to 1890 and is still in force to this day, of course with its corresponding
reforms, in its article 1051 established and establishes in essence, that the procedure
The preferred commercial law is the conventional one, that is, the one agreed upon by
the parties. In its current text, they have only added the words conventional before courts
or arbitration proceedings. This means that since then Mexico took into consideration
alternative dispute resolution methods, even when they were not regulated.

In addition to the aforementioned legislation, there are various criteria of the Supreme
Court of Justice of the Nation, which guarantee the constitutionality of arbitration, as well
as the execution of national and foreign awards.

However, and despite the fact that Mexico already has complete and modern legislation
on commercial arbitration, the figure is still not used enough. The reasons are several,
but the main one is the lack of information and its dissemination. The International
Conventions are unknown, the relatively new commercial adjective regulations are
unknown and therefore the advantages of arbitration are unknown.

Currently, arbitration as a formula for resolving commercial disputes in Mexico finds its
main basis, apart from the particular rules of the states that have jurisdiction to regulate
arbitration, in article 1051 of the Commercial Code, of federal application. throughout the
Republic, which establishes that the commercial procedure preferred to all will be the one
freely agreed upon by the parties with the limitations indicated in the same code, which
may be a conventional procedure before the courts or an arbitration procedure, and
which was added in the articles 1415 and 1463.

As a consequence, the arbitration institution is regulated in accordance with the Model

Law on International Commercial Arbitration, prepared and approved by the United
Nations Commission on International Trade Law, with adaptations to the needs of
Mexican commercial law.

Conflict resolution under mediation and arbitration schemes.

According to the Chamber of Commerce of Mexico City, commercial arbitration offers the
following advantages:

Immediacy with litigation. There is very direct attention from the court (in this case the
arbitral tribunal) to the controversy. Good arbitration is characterized by the immediacy of
the arbitrators with the dispute. The overload of files that are heard before the
jurisdictional courts makes it difficult to comply with the immediacy of the procedure.

Procedural flexibility. The procedure tends to be far from formalism and procedural
rigidity. Each arbitral tribunal has the possibility of conducting the procedure with the
most appropriate particularities for each controversy.

Time saving. In arbitration, the duration of the procedure tends to be much shorter than
in state courts. In public courts it can take between four and ten years to resolve a
commercial conflict, while through arbitration a maximum of six months is required. The
two factors that give rise to this are the greater rigidity of the jurisdictional process and
the extraordinary workload that weighs on the judicial courts.

Arbitration cost. Time savings invariably mean cost savings, so in the final result there is
a favorable balance for arbitration; However, the cost of the procedure depends on the
conflict and includes the expenses of the law firm that acts as arbitrator. Experts say that
it is advisable to use commercial arbitration when agreements exceeding 100 thousand
pesos are being negotiated.

Internationality of arbitration. When it comes to litigation arising from international

business, there are currently very few contracts that do not incorporate an arbitration
clause. The international jurisdictional procedure is particularly slow and complex.
Although progress has been made worldwide in terms of procedural cooperation
between States, it is to be expected that procedural acts that affect two jurisdictional
systems will be subject to more procedures and requirements.

Finally, the fact that the Mexican State reserves the monopoly of jurisdiction, the so-
called monopoly of exclusivity included in article 104 of the Constitution, does not imply
that individuals can substitute said activity through private procedures, when the latter
are admitted voluntarily, even with the force of res judicata, as determined by the
Commercial Code.

The use of arbitration supposes a usurpation of jurisdictional functions that correspond to

the State or a misunderstanding by the State of the jurisdictional function inherent to its
sovereignty. On the contrary, the Mexican legal system grants individuals the possibility
of choosing to resolve their problems between the jurisdictional channel or channel and
the extrajudicial one, specifically, arbitration.

The commercial diversity and use of facilities in supply centers creates the need to
develop an accessible, effective and low-cost system, aimed at resolving the
controversies that inevitably arise in some of these operations.

Considering the above, one of the structural barriers or impediments to making the
administration of these properties more efficient for the diverse range of users, is the
insufficient knowledge, access and use of Alternative Dispute Resolution Methods
(including mediation and arbitration). to resolve disputes arising from contracts and
transactions related to the use of commercial real estate.

Merchants and entrepreneurs (especially small and medium-sized ones) reasonably see
the possibility of resorting to ordinary courts as an expensive, slow, unpredictable option
and often as a disincentive to make and execute contracts in the wholesale commercial
field or the use of spaces in the supply centers. On the other hand, in cases where
companies have disputes with their clients, the high costs of the existing means of
judicial settlement, arbitration, generally force them to give up positions before starting
the battle.

Especially in the case of the supply center sector where a streamlined mechanism is
required to overcome the deficiencies of the current legal framework, the most suitable
solution to this problem is found within the framework of alternative dispute resolution
methods.

According to a study carried out annually by the World Bank, enforcing a contract in
Mexico requires 37 different procedures, 415 days and represents a cost of
approximately 20 percent of the value of the goods and/or services in dispute. In the
country best evaluated in said study, 15 procedures, 190 days and only 6.5 percent of
the value in dispute are needed.

If we analyze the above, the costs and judicial delay hold back the economy. In fact,
according to data from the Inter-American Development Bank, "statistics published by
the Superior Court of Justice of the Federal District indicate that judges handle an
average of 2,000 cases annually, receiving about 10 new cases per day and can only
resolve approximately three cases a day."

An example of how the dispute resolution mechanism has been used by the Mexican
government is the creation of the Concertation Agreement for the Continuous
Improvement of Competitive Business Practices, which promoted by the Ministry of
Economy, is an instrument that aims to promote identification, development and
application of best commercial practices, respecting free competition and competition,
which result in a healthy coexistence between producers, distributors, retailers,
department stores, chambers and other entities involved in the production and
distribution of goods and services , for the benefit of the productivity and competitiveness
of the sector.

It covers a wide range of business practices, including:

• Complete and on-time deliveries

• Payments
 • Discounts
• Returns and Rejections
• Sales below cost
• Quality Specifications
• Own brands
• Compliance with the regulatory framework
• Conditional purchases/sales
• Pressure media
• Monopolistic practices
• Purchase order
• Dispute resolution mechanisms.
• Agreement
• Conciliation
• Mediation
• Arbitration

The Commercial Practices Agreement aims to benefit producers, distributors, retailers,

department stores, chambers and other entities involved in the production and
distribution of goods and services.

To do this, it is essential to sign and adhere to an agreement that seeks to promote the
identification, development and application of best commercial practices, respecting free
competition and competition, which result in a healthy coexistence between producers,
distributors, retailers, and department stores. , chambers and other entities involved in
the production and distribution of goods and services, to benefit the productivity and
competitiveness of the sector.

Among the purposes of the agreement are:

Adhesion by companies and/or organizations to this Agreement will be carried out in the
terms provided for in this instrument. Said accession will be voluntary and will result in
the companies that sign it being reciprocally obliged in their commercial relations to
comply with this Agreement. Organizations and companies that sign or adhere to this
Agreement are only bound by those that have also done so.

The strengthening of the Permanent Executive Committee (CEP), which is responsible

for the functions established in this Agreement and its annexes.

The specific purposes of the Agreement will be to achieve, by consensus, the following:

Harmonize competitive and efficient commercial practices between the different agents in
the production chain.

Ensure compliance with agreed commercial practices, as well as resolve disputes

regarding compliance.

Develop the interpretation and enrichment of commercial practices, as well as the

precision of the conditions under which they must operate.

Create subcommittees and work groups to comply with this Agreement.

Make operational the adhesion of organizations and companies to this Agreement.

Promote the development of dispute resolution mechanisms in commercial relations

between companies that are part of this Agreement.

Facilitate the continuous improvement of commercial practices, as well as monitor their

compliance

Promote legality in commercial activities.

Under this agreement, the dispute resolution mechanism in commercial relations

between companies that adhere to this Agreement will comply with the following
guidelines.

Without prejudice to what the laws provide and what the contracts between the Parties
provide, the organizations and companies that are Parties to this Agreement will have the
timely communication to resolve in the best way any incident that originates in their
commercial relations, as well as as well as in the correct interpretation and application of
this Agreement.

Companies that adhere to this Agreement will provide what is necessary to contractually
determine, preferably in writing, their commercial relationships and to fully comply with
the commitments made in this Agreement, avoiding differences with their counterparty as
far as reasonably possible.

Agreement. The Parties to this Concertation Agreement will attempt to resolve their
differences under a principle of communication and reciprocal understanding and
preferably without the intervention of third parties, whether administrative or judicial. For
this purpose and without prejudice to the rights of the Parties to go to the competent
jurisdiction, they will consult among themselves with the purpose of finding mutually
satisfactory agreements to resolve their differences. It will be a consideration of good
disposition and good faith for the Parties involved in a dispute to designate and accredit
representatives or negotiators, who have legal powers to decide on the disputed issue or
issues, whatever their nature. This phase may not last longer than 40 business days.

Conciliation. In the event of a dispute, the Parties may resort to the good offices of a
business organization who must be heard reciprocally and reasonably. When the good
offices of a business organization are requested by one of the parties, said organization
will be obliged to notify the Technical Secretary for purposes statistics. The notification
must identify the parties involved in the commercial dispute and the date of receipt of the
request. This phase may not last longer than 40 business days.

Mediation. When the dispute is not resolved, despite efforts to avoid controversy and to
seek compromise as provided for in the preceding paragraphs of this Clause, the Parties
may freely and in good faith establish an amicable settlement mechanism with the
assistance of a third party who is expert and neutral. The amicable solution mechanism
may be mediation, obtaining a technical opinion or any other method provided for in their
contracts or that they freely choose and that is relevant to resolve the problem in
question. Once the friendly dispute resolution mechanism has been defined, the parties
involved will be obliged to notify the Technical Secretary for statistical purposes. The
notification must identify the parties involved in the commercial dispute, the date of
receipt of the request and the defined mechanism. The CEP, through the corresponding
Subcommittee, will carry out studies and propose guides, methodologies and other
instruments to promote the adoption of these friendly dispute resolution mechanisms
assisted by neutral experts. This phase may not last longer than 40 business days.

Arbitration. Once the possibilities of compromise, conciliation or mediation provided for in

this clause have been exhausted, or after 40 business days after the Technical Secretary
was notified of the start of the dispute, any of the Parties may request resolution of the
dispute. that is dealt with through an arbitration procedure in accordance with the
provisions of Annex 3 of the Convention. The business organization representing the
requesting party during the dispute resolution process will notify the Technical Secretariat
of the start of the arbitration procedure for statistical purposes. The notification must
identify the parties involved in the commercial dispute, the date of receipt of the request
and the defined mechanism.

The provisions of this clause and in general of this Agreement shall not imply any
restriction for any of the Parties involved in a dispute to go directly to the authorities.

Annex 3 – arbitration procedure – concertation agreement for the continuous

improvement of competitive commercial practices, establishes that all disagreements
arising from this Agreement or that are related to them and that are submitted to
arbitration will be definitively resolved in accordance with the Title Four of Book Five of
the Commercial Code.

The applicable law will be Mexican, the language will be Spanish, and the seat of
arbitration will be Mexico City, Federal District.

The procedure to determine the number and appointment of arbitrators will be as follows:

Arbitrations may be resolved by a single arbitrator or by three arbitrators.

If the parties do not agree on the number of arbitrators, the dispute will be submitted to a
single arbitrator.

When the parties have agreed that the dispute be submitted to three arbitrators, each of
them must appoint one in the complaint and the answer respectively, and the third will be
appointed by the two arbitrators.

The parties will have up to 20 business days to select the arbitrator(s) they determine
independently.

Having concluded this period without the arbitrator having been appointed, the
Secretariat will send the parties a list of five candidates from recognized entities to serve
as arbitrators.

Each of the parties will communicate to the Secretariat, within a maximum period of 10
business days, the names of three arbitrators selected from said list in the order of their
preference.

Taking these preferences into consideration, the Secretariat will assign the arbitrator(s)
to the parties to continue with their arbitration procedure.

In the event that any party does not send its preference list to the Secretariat, it will
designate the arbitrator(s) of the party that had sent it.

In the event that neither party sends said list, the Secretariat will freely designate the
corresponding arbitrator(s).

In the case of a panel, the Secretariat will identify the arbitrator who will act as its
president.

The parties will be obliged to abide by said designation and the award that the
arbitrator(s) issue.

The costs of the arbitration will be covered in full by the parties. Under no circumstances
will the Secretariat cover any part of the cost.

However, this scheme is not specialized in food and is only focused on the supply chain
of food and merchandise to supermarkets or commercial chains, without being focused
on solving problems at intermediate points of the distribution chain or operation
problems. internal in supply centers.

A generic arbitration scheme has the great disadvantage of not having specific elements
that allow it to address the needs of key sectors of the industry that it is intended to serve
with alternative justice schemes.

In other countries, for example, such as Spain, to resolve disputes that arise between
agents involved in the real estate sector or with third parties, whether inside or outside
supply centers, in matters of free disposal, it may be use the institution of arbitration,
which has been regulated by Law 36/1988 of December 5, 2003.

Some features of this system are:

It is necessary that the interested parties have previously agreed to submit said issues to
the decision of one or more arbitrators, committing to comply with the Award they issue.

The Arbitration agreement may appear as a specific clause in a contract or be

established when a controversy arises. In any case in writing.

The administration of Arbitration and the appointment of arbitrators may be entrusted, in

accordance with its regulations, to an institutional arbitration system.

In the real estate sector, the only specialized entity is "ARBIN", Real Estate Arbitration
Association

The resolutions issued by the Arbitrators have the status of res judicata, and are not
susceptible to judicial review, except for the rare cases of nullity established by Law.

The advantages of Arbitration lie in its lower cost and speed of resolutions.

As has already been mentioned, among the most decisive factors that explain the
distancing of individuals from the courts of Justice to resolve their private law conflicts,
two must be highlighted above any others: the exasperating slowness of Justice, on the
one hand, and the surprising increase of companies and legal entities in civil and
commercial life, on the other.

The clear evasion of the judicial solution in those matters in which the free disposition of
the parties governs, is noted that prevails in a large number of countries that, in a certain
way, reject the judicial system. And, "what the nature of the new type of conflict demands
is a mediator, but what is offered is a Judge." And the difference between one figure and
the other is that "the mediator seeks, above all, to influence the parties so that they reach
an agreement, based on the interests they put at stake, while the Judge's mission is
more closely related to the level of the applicable rules, trying to reach a conclusion
regarding which of the parties, and to what extent, is right."

In order to make arbitration attractive, Law 60/2003 of December 23 was prepared and
promulgated. The advantages of the figure of Spanish Arbitration justify its use, which is
on a very noticeable rise. Much of the virtues of Arbitration in Spanish Law lie in the
character of the arbitration procedure, which is, by essence, very simple and informal.

But, in addition, Arbitration is a jurisdictional equivalent, through which the same

objectives can be obtained as in the ordinary Jurisdiction, mediating, of course, the
availability of the matters, since the decision of the conflict enjoys all the effects of the
"Juged thing". The subjective element of the current Arbitration Law is included, on the
one hand, by the natural or legal persons who sign the arbitration agreement and, on the
other hand, by the Arbitrators.

Fully capable natural or legal persons can formalize an arbitration agreement, while
those who are incapable must supply such capacity, which is, precisely, the negotiating
capacity. As for legal entities, they can validly conclude an arbitration agreement through
their administrative bodies or their representatives, in accordance with the provisions of
their statutes.

The disputed issue has an indisputable projection of "present" and "future." And the fact
is that, for the Arbitration Law, the arbitration agreement can affect contentious issues,
which can be both present and future. The object of arbitration are all those contentious
issues, or some of them, arising or that may arise, from specific legal relationships -
whether or not contractual-, provided that these issues are - as we said - within the
sphere of self-determination of the parts.

The Arbitrators will decide the disputed issue subject to law or in equity, according to
their knowledge and belief, at the option of the parties. In the event that the parties have
not expressly opted for legal arbitration, the Arbitrators will resolve in equity, unless they
have entrusted the administration of the arbitration to a corporation or association, in
which case the provisions of their regulations will apply.

The arbitration agreement must be formalized in writing, this written form being essential,
therefore if it is missing, the agreement is void. However, it is not required that the
document be signed by the parties, opting for a flexible criterion, understanding that the
agreement has been formalized by the parties, not only when it is recorded in a
document signed by them, but also results from the exchange of letters or any other
means of documentation (fax, telegram, etc.) that clearly demonstrates the parties'
willingness to submit to arbitration.

The arbitration procedure conforms to the simple and pragmatic rules of the Arbitration
Law, subject to the essential principles of hearing, contradiction and equality.

This simple and open procedure allows taking into account the will of the parties or the
rules established by the Corporations or Associations to which the administration of the
Arbitration has been entrusted, as well as the criteria of the Arbitrators.

The Arbitrators will conduct, at the request of a party, or on their own initiative, the
evidence they deem relevant and admissible in law; They may request the assistance of
the Judge of First Instance to carry out those tests that they cannot carry out themselves;
and once the tests have been carried out, the Arbitrators may agree to hear the parties or
their representatives.

If the parties have not agreed otherwise, they must issue the Award within a period of six
months. Once such period has elapsed without the Award being issued, the arbitration
agreement will be void and will facilitate the judicial process to raise the controversy.

Finally, another finished and ongoing example is the commercial dispute settlement
system, known as the Fruit and Vegetable Dispute Settlement System, or DRC.

The Fruit and Vegetable Dispute Resolution Corporation (hereinafter referred to as

DRC), is a civil association that brings together Mexican producers and marketers of
fruits and vegetables and is dedicated to offering efficient, economical and capable
dispute resolution services. be enforced.

Since its founding, the DRC has focused on meeting the following objectives:

Provide mediation and arbitration services to help its members resolve commercial
disputes.

Promote the conduct of commercial transactions within an ethical and safe framework
through a common set of commercial practices.

Offer alternative conflict resolution options that exist and their advantages over traditional
trials.

The DRC was originally created to cover a service until then only available in the United
States through the Perishable Agricultural Products Act (PACA) that protects, through an
arbitration system, the purchase and sale operations of fruits and vegetables, which are
not accessible to producers in Mexico and Canada. Like PACA, the DRC is becoming a
disciplinary body for the fresh fruit and vegetable industry in Mexico, the United States
and Canada. The DRC Rules and Procedures are becoming more widely known, and the
rules for suspension or expulsion of members have become more rigid.

In its quest to offer better services to members, DRC Mexico has strengthened its actions
by providing additional services, such as training and dissemination, as well as alliances
with key organizations in the sector such as supermarket associations, supply centers
and producer organizations.

With a unique system of rules and practices for the arrival and delivery of merchandise,
applicable in the national market, import and export of these products, it is possible to
have access, when required, to specific references of price, quality and shipping
conditions of products. marketed or solve these problems without resorting to judicial
means.

Mediation and arbitration services, although they have existed in Mexico since the late
1980s, had not been perfected to be used in the agro-food sector. The only option
available was to resort to judicial proceedings that involve long and complex trials, costs
of legal advice and guidance, lawyer costs and payment of commissions or
compensation for the recovery of accounts receivable.

All of this is avoided by knowing the solutions offered by DRC Mexico, as it is a private
scheme aimed at benefiting the fresh fruit and vegetable industry as a whole.

The DRC's mission is to provide Mexico's fruit and vegetable industry with the trilateral
policies, standards and services necessary to resolve disputes in a timely and
economically effective manner. Therefore, the vision of the association is to become the
leading private organization in the prevention and resolution of disputes within the fruit
and vegetable sector in Mexico. To this end, strengthening its membership is key to
achieving its objectives as an association, since fair trade practices can be established
more easily as a larger group of companies can be integrated into the association's
membership.

DRC works like insurance, since its results are not measured based on the arbitrations
carried out but in cases that could be prevented by providing advice on contracts, review
of the client's credit quality and review of the terms of purchase and sale both in the
market. national and international.

Despite this, until 2011, more than forty cases have been brought to arbitration from
Mexican companies that required this service, allowing producers to recover the product
of their sales. In comparison, matters resolved without arbitration only took 37 days on
average, while cases with arbitration took 179 days, a very competitive period against the
deadlines taken in judicial instances. 82% of cases are resolved without the need for
arbitration.

Under this system, companies that join the Fruit and Vegetable Dispute Resolution
Corporation (DRC) adhere to a common set of business practices and mediation and
arbitration procedures. DRC decisions can be recorded and enforced in the courts of all
three countries.

DRC affiliated companies also receive general guidance and advisory services in the
commercial branch of fruits and vegetables to all companies in the sector, Analysis of
current and potential clients, at no additional cost.

It has been recognized that one of the structural problems of marketing in Mexico is the
excessive costs that market participants have to incur to settle disputes that arise in
trade. This has to do with the slowness of judicial processes, which derives not only from
the nature of the legal framework itself, but also from the inefficiencies in the functioning
of the Federal and State Attorney's Offices and the Judiciary. For a primary producer, the
fact that the buyer delays payment or does not make it can mean the loss of all his
working capital and his eventual withdrawal from the activity. In perishable products,
these inefficiencies have consequences even more
serious since the evidence of the
breach of a contract is also perishable. A shipment that arrived in good condition of
quality already over there at the time that they start the
judicial investigations.

Even in the United States, with an expeditious judicial system, there is parallel legislation
to regulate the trade of perishable products (Peris speak Agriculture Products Act,
PACA), through which the Department of Agriculture is empowered to guarantee
compliance with contracts, and serve as an arbitrator with mandatory resolutions in
cases of conflict, among other functions. In Canada there is a system similar to that of
the United States, with the option that allows companies in the sector to affiliate with
DRC as an alternative to demonstrate due compliance with the laws. In Mexico,
constitutional provisions prevent the creation of official extrajudicial instances of this type.

There are two ways in which DRC decisions can be adopted: 1) Automatically: when
both parties in conflict are members of the DRC, or 2) By mandatory adoption, when both
parties sign an arbitration agreement or have included in your contract an arbitration
clause to resolve your disputes through the DRC. Among DRC members, resolutions are
enforceable and cannot be renounced.

Its rules and procedures are aligned with those established on international commercial
arbitration and conciliation established by the United Nations Commission on
International Trade Law (UNCITRAL) and the Commercial Arbitration and Mediation
Center for the Americas.

Likewise, since the three NAFTA countries are signatories to the 1958 UNCITRAL
Convention on the Recognition and Enforcement of Foreign Arbitral Awards, DRC
arbitration awards obtain recognition by the courts of Mexico, the United States and
Canada. through the homologation procedure, which makes an award res judicata,
instructing the judge to issue the judicial sentence without the need to file a lawsuit and,
in the case of Mexico, without the loser of the arbitration having a recourse for protection.
The same NAFTA establishes in Chapter 20, Section C, the possibility of resorting to
private international arbitration to resolve commercial disputes, with Article 2022 being
the one that promotes and facilitates access to this resource for resolving disputes in the
agribusiness sector. .

In Mexico, the creation of the National Arbitration Service for the Rural Sector in the
Sustainable Rural Development Law (LDRS) is an important advance, although possibly
insufficient, since neither the regulations for its operation nor the agents that would
contribute have been defined. in his exercise. The DRC can help shorten the path to
comply and put into operation the provisions issued in article 185 of the LDRS, in the
following way:

DRC can help the National Service for Standardization and Inspection of Agricultural
Products and Storage, since among its regulatory documents there are guidelines for
good arrival and delivery of products, which establish acceptable tolerances for defects
and damage to commercial shipments. , without having to go through the process of
issuing Official Mexican Standards.

These criteria are aligned with the quality standards that apply in the United States and
Canada. In addition, DRC has transportation guidelines for these products that allow for
the resolution of controversies generated by problems in the handling or condition of
transportation of perishables where applicable.

In Articles 71, section II, and 108 of the LDRS, SAGARPA's interest in the development
of contract farming is expressed. Contract farming has great advantages: The buyer
guarantees its supply under pre-established conditions in terms of product quality, price,
payment terms, and delivery times. The producer guarantees its marketing and has
certainty in its sales price and profitability. Ideally contracts are closed before planting.
Contract farming ranges from verbal agreements to formal, binding arrangements.
Studies by FIDEC-Banco de México indicate that contracts are used in no more than 30
percent of commercial production.

In Mexico, institutional programs for contract farming focus on grains and oilseeds, since
these are markets that are intervened. There are greater subsidies for price coverage
when registered contracts exist. Other programs are aimed at channeling subsidies to
achieve the commercialization of crops. The buyer undertakes by contract to pay the
producer a certain price using a certain subsidy.

In the case of fruits and vegetables, the promotion of contract farming will have little
effectiveness if there are no basic conditions that support it, such as quality standards,
inspection and arbitration systems, among other aspects, given the deficiencies in the
current judicial regime and within the quality regulatory framework.

Under this system, companies that join the Fruit and Vegetable Dispute Resolution
Corporation (DRC) adhere to a set of commercial practices in contracts, transportation
and quality of fruit and vegetable products and common mediation and arbitration
procedures. DRC decisions can be recorded and enforced in the courts of all three
countries. DRC procedures can be extended to other subsectors and services, with a
high degree of compatibility with the precepts of the Sustainable Rural Development Law
on Arbitration for the Rural Sector.

This establishes the feasibility that commercial arbitration systems can be used to
resolve disputes of:

• Common trade practices and commercial relations

• Commercial operations
• Real estate operations
• Collection of dues and union conflicts
• Unfair trade practices
• Preliminary conclusions
• Arbitration today offers a flexible process and the best means of dispute resolution
that guarantees professionalism and impartiality.
• Care must be taken to act diligently, carefully and intelligently at all stages to reap
the benefits of arbitration.
• Never close yourself to the possibility of mediation when this means is viable and
there is little chance of success.
 12. RECOMMENDATIONS

The general recommendations for each of the topics covered aim to identify the areas of
opportunity that can be found to improve the competitiveness of supply centers. These of
course, if applicable to the reality of the supply centers, require a degree of commitment,
both on the boards of directors and boards of directors, as well as those responsible for
the administration or management of the supply centers, in the which the former grant
the latter degrees of freedom in decision-making, based mainly on strategic development
plans in the medium and long term, in periods of three to five years.

The implementation of good practice programs are fundamental elements for the
regeneration of the competitiveness of supply centers, since all the commercial formats
that compete with them, directly or indirectly, have adopted these performance standards
in their relationship with clients and users. In this scheme of good practices, the physical
and functional aspects, waste management, aspects related to image, safety,
technological innovation, optimal sizing, signage and services must be considered,
without necessarily being limiting.

Supply centers must base their performance on compliance with the law and the legal
framework that applies to them. In this sense, identifying and characterizing the most
common legal elements that affect supply centers and the companies that participate in
these operations is a task that the administration of said centers must dedicate
periodically, in order to stay aware of the aspects that affect its daily operation, reviewing
both the national and international legislation applicable to supply centers and the
companies that operate in their facilities. The legal framework is federal, state and
municipal coverage, with the official Mexican standards being the most relevant and
applicable legal elements in the matter, their systematization and dissemination being an
important task in the activities of a supply center.

The supply centers, based on a preliminary evaluation, must make their operational
structure more flexible and restructure, with the intention of generating the legal figures
that allow them to adapt to the ideal legal, fiscal and commercial regulatory framework,
and have the relevant elements in the operation and administration of the supply center,
either as an elementary administrative entity, or when it accompanies its trading partners
in the promotion of value-added projects, foreign trade activities, or food processing,
activities specifically regulated by the authority. The supply center can modify its internal
operational structure and reinforce the support it can receive by having a less heavy and
more versatile external structure, with highly specialized personnel and experts in the
subjects of interest.

The organization of human, material and financial resources are relevant elements in the
administration for the competitiveness of a supply center. The performance of certain
specific functions for the administration, such as the establishment of objectives,
operational and strategic planning, the identification, management, allocation and control
of resources and the instrumentation and implementation of projects, must be
complemented with the reorganization of the internal and external structure of the supply
center to respond to the needs of society as a whole, of the actors that influence the
administrator's performance, and fundamentally those who support the operational load
of the supply center: the merchant and the user or client of their services.

In a more demanding business environment and with new, more aggressive and
innovative trade formats, and given the limitations that exist for the establishment of good
commercial practice programs, dispute resolution systems based on alternative justice.
Commercial mediation and arbitration has proven its effectiveness and efficiency in
various issues, and the marketing of merchandise is no exception. Likewise, its versatility
allows it to extend to the real estate operation regulations of supply centers, among other
relevant topics. However, there are two options: joining an already created dispute
resolution mechanism, which would have the main disadvantage of not being specialized
in the operation of activities typical of a supply center, or developing a union dispute
resolution system. controversies under the protection of knowledge and specialization of
the supply sector.

Any isolated effort will not have the same benefits, and as soon as these
recommendations can be adopted through work plans that allow the conjunction of
efforts between supply centers, official institutions, union representations, under
schemes promoted by the National Confederation of Food Groups Merchants in Centros
de Abasto, AC (CONACCA), the multiplication of benefits will be enhanced by the
contribution of resources and talents that each participating organization can contribute.
 13. CONCLUSION

In order to develop a plan for the execution of an architectural work, its mission must be
detailed, as well as its objectives, foresee the possible results, to propose the best
alternative for it. Thanks to the implementation of documents like this, all the factors that
must be taken into account for the design of a work of this nature can be analyzed; which
allows us to observe and set the correct goals, as well as create an ideal execution plan,
so that everything is carried out in the most appropriate way. Projects usually contain a
database of an intrinsic and extrinsic nature, which allows us to compile information.
Without this we could not carry out a work of this magnitude, which is why we can see
the immense importance of creating documents of this nature.
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