introduction to administration

ALEXANDRA OCAMPO ESPINOSA

1088015504

JENNY ANGELICA VILLALOBOS

1.093.222.422

UNIVERSITY FOUNDATION OF THE ANDEAN AREA

INTRODUCTION TO ADMINISTRATION

PUBLIC ACCOUNTING

2013
 introduction to administration

PRESENTED TO:

OMAR RAMIREZ

ALEXANDRA OCAMPO ESPINOSA

1088015504

JENNY ANGELICA VILLALOBOS

1.093.222.422

UNIVERSITY FOUNDATION OF THE ANDEAN AREA

introduction to administration

PUBLIC ACCOUNTING

2013
ALEXANDRA
OCAMPO
ESPINOSA
 CONCEPTUAL MAP

ADMINISTRATION

influences

philosoph
ical globalization
churches. Catholic
Military
org globalization
rev. Industrial org. Policy
econ. Liberals com. Global
social control

modify

company as administrative thought

thus creating

type of company organization types

made mutual
right social
functional areas superior

financial administrative
marketing production

basic concepts philosophy

environment
efficiency change
effectiven
ess change in fashion
phenomenon of
productivity change
 COMPARATIVE TABLES

(AUTHORS)

AUTHOR HISTORY CONSTRUCTION BEGINNING

SITE
American mechanical - I rationalize the
FREDERICK engineer and - Standard work.
WILSON economist , promoter work - Science and not
TAYLOR of the scientific empiricism.
(1856-1915) organization of work 1903 called Shop - Identification of
and is considered the Management. interests.
father of Scientific - The production
Administration of prosperity
- Division of
HENRY He was born in - Admon. labour.
FAYOL Constantinople, lived Industrial. - Authority
(1941-1925) the consequences of (1916). - Discipline
the industrial - The - Remuneration.
revolution, and was a industrial - Hierarchy
mining engineer. He incapacity - Order
was born into a of the state - Equity
bourgeois family. (1921). - Stability
- Initiative
- Scientific - Micromovement
FRANK B. Born in Fairfield, manageme s and
GILBRETH American engineer nt movements.
(1868-1924) and management (1911). - Rate the merit.
consultant. Business, - fatigue - Fundamental
married to Lilian study role of the
Evelyn Moller. (1916). psychologist .
American mechanical - "Work, - Chronological
HENRY L. industrial engineer . Wages and concern.
GANTT Born ( Calvert County , Profits" - Valuation of
(1861-1919) Maryland , United (1913) time.
States . - Gantt chart. - Applied
psychology.
Social theorist,
professor at Harvard - Neoclassica - Development of
University, and l theory. the human
ELTON specialized in theories - Theory of sciences.
MAYO of organizations and human - Human factor
(1880-1949) human relations relations. as a resource.
movements.
 American economist, - Theory x: - The human
Professor at the command, aspect is the
DOUGLAS prestigious control, company.
MCGREGOR Massachusetts supervisors. - Social needs.
(1906 - 1964) Institute of Technology - Theory Y: - Self-
during the last 10 division of actualization
years of his life. labor. needs
 (SCHOOLS)

SCHOOLS INVESTIGATION
- Social and environmental levels
LATER SCHOOLS (Renate Mayntz, Ralf
Dahrendorf).

GROUP DYNAMICS SCHOOLS
SCHOOL OF CONTINGECES
- Empirical research.
- Group norms.
- The atmosphere.
(Kurt Lewin).
- Specific situations and ways to
respond.

- Food stress chain response.

HIERARCHIZATION OF NEEDS (Abraham Lewin).

- Variable to provide situations that

FREDERICK HERZBERG generate comparison.
 JENNY
ANGELICA
VILLALOBOS
AGUIRRE
 OLYMPIC WAREHOUSES

PRESENTATION OF THE ORGANIZATION

Name of the organization: Superstores and Droguerías Olímpica SA

Night: 890107487-3

Commercial address: Avenida 30 de Agosto No. 36 -10 Administrative

Area

Address: Pereira - Risaralda

Telephone: 3361911 Ext. 550

FAX: 3369881

Home-Site: www.olimpica.com

 Service provided:

Marketing of family basket products nationwide.

 Number of employees:

The regional coffee region has approximately 250 employees.

 HISTORY

Olímpica was born in Barranquilla in 1953, when Don Ricardo Char, a

distinguished merchant from Lorica, Córdoba, acquired the Olympic store.
A small pharmacy located on Calle de Las Vacas in the capital of
Atlántico.
By selling groceries in addition to pharmacy items, Don Ricardo gained the
trust of his clients and with it the satisfaction of feeling well served. A year
later, two more drugstores were opened, one on Paseo Bolívar and
another on San Blas Street and 20 de Julio.
But it is Fuad Char, Don Ricardo's eldest son, who turned the business
around after taking charge of the pharmacies, due to the accident suffered
by his father. By intuition and a good sense of smell, more than by
commercial experience, Fuad set out to conquer the Barranquilla market
in the company of his brothers Jabib, Farid and Simón with whom he
established CHAR HERMANOS LTDA.
968 is a historic year for the organization. The first OLYMPIC Superstore
was inaugurated in Barranquilla, located on Calle 30 and Carrera 43
corner, with the slogan: 'Go up one floor and earn pesos.' With this, they
completely entered the food and household items market. Their marketing
strategy was 'Sell more at a lower price.'
At the beginning of the 70s, the OLÍMPICA Superstore on 72nd Street was
inaugurated, a pioneer of the self-service system, which represented a
complete achievement among Barranquilla residents. Consecutively, the
conquest of the national market began with the opening of the first
drugstore in Cartagena and in Santa Fe de Bogotá, the Olympic
Superstore on 100 Street. Years later, in the 1980s, the company
continued its expansion with the opening of new points of sale throughout
the country.
 SERVICE POLICY

At OLÍMPICA SA, workers not only have to be experts in their craft, they
must also execute it with the greatest courtesy and kindness that has
always characterized us as part of our mission.
Satisfied customers are an asset whose value and loyalty are incalculable.
They are the inspirers of our organization and our work. Therefore, they
must receive excellent treatment, so that they consider OLÍMPICA a
friendly, helpful, agile and efficient organization that meets their service
expectations.
 MISSION

We are one of the leading companies in the marketing of high-quality

mass consumption products, through a private chain of drugstores, super
stores and super stores, aimed at satisfying the needs and desires of the
community, offering good service and best prices, with the support of
committed and fully trained human talent, with the trust of its suppliers and
advanced technological development, seeking the well-being of society
and adequate profitability.
 VISION

To be one of the leading companies with the highest level of

competitiveness and efficiency in the marketing of mass consumption
products of optimal quality. All, through a clearly differentiated private
chain of drugstores, a combination of supermarkets and drugstores,
convenience stores and warehouses, always oriented to satisfy the needs
and desires of the Colombian community, offering the best friendly service
on the market, the best prices and the best product availability.
 VALUES

Teamwork: Create a shared commitment to common ideas, values and

goals that allows us to reflect corporate unity and balance.
Creativity and Innovation: Ability to generate completely new and
innovative ideas that serve to obtain beneficial results.
Learning: Willingness to assimilate and put new concepts into practice.
Service Attitude: Willingness to satisfy the client's needs, responding in
an affectionate and timely manner.
 SOCIAL RESPONSABILITY

OLÍMPICA SA has worked under a social action as a way to channel the

solidarity of our collaborators, company and managers towards the most
vulnerable. Seeking to contribute to the sustainable development of
society, voluntarily contributing to a better country.
Among the foundations supported by the organization are those of the
following types:
Social: Within this foundation OLÍMPICA SA supports the Social Seal
campaign, led by Tejido Humano, a private non-profit entity that supports,
through foundations and other strategic allies, the population victims of
violence in Colombia, with generation projects. income, health and
education for employment to the disabled, widows and orphans of the
public force, minors and young people unrelated to violence and civilian
victims of antipersonnel mines.
Culture and Sports: OLÍMPICA SA, committed to sports, supports the
different regional tennis and baseball tournaments held throughout the
year. Likewise, every year it sponsors the athletic race led by Fenalco,
which brings together more than 5,000 athletes.
Ecological and Environmental
The Elephant: In case some of you didn't know, OLÍMPICA SA has its
own mascot, a beautiful elephant that lives in the Barranquilla zoo.
OLÍMPICA SA adopted this ELEPHANT more than two years ago, through
a program that consists of an advertising agreement that allows it to
support the mission of the Barranquilla Zoo Foundation with resources that
are invested in the annual maintenance of the animal, among which this
daily feeding, care, veterinary and biology service, maintenance and
installation of their habitat, general water and electrical energy services,
possibility of new species, conservation and education programs and
research.
 SECTIONS

Fruits and Vegetables: We offer you the best and widest range of fruits
and vegetables, selected by expert hands in the fields of Colombia and at
the best prices.
Meats: Our leadership in meats begins in the best fields on the Atlantic
Coast and in the Eastern Plains of Colombia. Livestock farming, selection,
packaging and distribution are processes in which we are leaders due to
experience and innovation.
Bakery: We have the best industrial bakery plants, raw materials and
expert bakers, which allow us to bring the best product to your table.
Delicatessen: Our entire process at the Delicatessen has quality
standards. The detailed selection of ingredients, specialized personnel
and our food assurance department allow us to deliver a product of
excellence.
Appliances: For the home, we offer different alternatives in cutting-edge
products and the best brands in digital audio and video, white goods and
technology.
Miscellaneous: We have modernized our purchasing infrastructure in
furniture, decorations, kitchen and Christmas items, toys, hardware,
lingerie and motorcycles, importing the best quality products in line with
global trends.
Textiles: We have a diverse assortment with current fashion trends, with
national, imported and exclusive designs. Today we have our own brand
Dakota, which offers excellent garments of great design and quality.
Drugstore: We are national leaders in the sale and marketing of
medicines. We manage agreements with the most recognized entities in
Colombia.
Cosmetics: We offer a wide range of cosmetic products, with the best
prices and in world-renowned brands.
 CORPORATE SERVICES
INSTITUTIONAL CREDIT

Credit granted to Companies, Funds and Cooperatives, which can be

used for the consumption of these or their employees, partners or
affiliates, with the company being jointly responsible or responsible for the
quota.
Institutional Credit
o Rotating credit (study at no cost).
o No handling fee.
o No interest rate.
o I pay at 30 days.
o National coverage in our 4 formats (SAO Superstores, Superstores,
Superdrugstores and Drugstores).
o Alternative for the payment of incentives and bonuses to the workforce.
o Valid for purchases of promotional products.

BENEFITS
o Personalized service every day of the year.
o Different types of events in each season of the year (School, Mothers,
Fathers, Love and Friendship and Christmas).
o Alliances with suppliers in special events.
o Business fairs with advertising and logistical support.
o Constant promotion information.
o Remote market.
o We offer companies the largest number of products as the only operator
and supplier of their needs.

Olympic Bonuses
It is the best alternative for paying incentives or bonuses to your
employees and a good option to give as gifts on special dates; They do
not generate VAT, redeemable in any of our 4 formats, they can be
directed to any of our categories (groceries, cafeteria, school, clothing,
 appliances and home). Their denominations are: $5,000, $10,000,
$15,000, $20,000, $25,000 and $50,000.
Wallet Card
Plastic with magnetic strip that allows the beneficiary to access all our
products in the Olímpica Super Stores and SAO Super Stores. The
assigned quota will be defined by the company, fund or cooperative
responsible for the credit.
OUR CARDS

Your Olympic Silver Card gives you great benefits:

 Earn one point for every $100 in purchases.

 Spectacular monthly events.
 It's totally free.
 Discounts in commercial alliances, according to current agreement.
 You can redeem your points for up to 50% of the value of products in
certain sections (Check conditions at the point of sale).
 The score is valid for one year.
 Your Olympic Card gives you great benefits:

 Special discounts on Plaza Wednesdays on fruits and vegetables and

periodically in many other categories that will be informed to you in a
timely manner.
 Cash advances of 30% of the quota deferred up to 12 months. Maximum
withdrawal amount per day $500,000.
 Refund of 2 VAT points.
 Accumulate points just like the silver card.
 Deferred purchases at an interest-free installment.
 Exclusive promotions for Cardholders.
 Issuance of additional card at no cost.
 National coverage in more than 180 Olympic establishments in the
country.
 You can also use it at the Travel agency in Bogotá and Barranquilla,
Joyería Moderna and GoGo Shop in Barranquilla.
 Free life insurance that guarantees payment of the balance owed in the
event of the death of the Obligation Holder.
 Free hotline in Barranquilla 3361990 and the rest of the country
018000510513.
 Check the status of your Card and make payments at
www.serfinansa.com.co , Transactions icon.
 OUR BRANDS

We have developed for you a large family of own brands in the Groceries,
Fashion, Home, Technology and Appliances sections, to enjoy at the
lowest price. Find them in our Olímpica and SAO warehouses in the
country.
 SUPPLIERS MANUAL

INTRODUCTION
A fundamental part of the process of providing the different services
typical of the supermarket activity carried out by OLÍMPICA SA,
(hereinafter OLÍMPICA), are the relationships with its suppliers. The
quality of the products and services that they supply to the chain directly or
indirectly affects our results.
Due to the large number of suppliers with whom OLÍMPICA must
negotiate on a permanent basis, it was considered necessary to design
general conditions for contracting suppliers in response to the particular
characteristics of these and their products, in order to guarantee uniform
treatment. and fair, in accordance with current regulations.
The OLÍMPICA Supplier Manual has been prepared considering that our
suppliers collaborate in the quality of the product/service supplied and with
the purpose of establishing clear and uniform rules of the game for the
harmonious and transparent development of the chain's commercial
relations with their suppliers. In effect, this manual contains the
commitments that the parties acquire reciprocally and should be
considered as a binding document in the management of commercial
relations.
Through this OLÍMPICA Manual, it establishes administrative practices
and procedures whose objective is to ensure the competitiveness and
development of the business, to meet the goals of the organization and
the expectations of customers and suppliers.
This Manual will be applied in accordance with the “Goodwill Agreement.”
Industrial and Commercial Practices” signed on December 18, 2003
between
ANDI, ACOPI AND FENALCO. Based on these guidelines, OLÍMPICA will
negotiate and
1. Supplier selection
OLÍMPICA undertakes to use reasonable and objective parameters for
choosing suppliers and products, for which it will take into account the
characteristics of each one, as well as the criteria contained in this
Manual.
Additionally, it will refrain from demanding additional requirements to those
provided for in this chapter.
OLÍMPICA undertakes to make suppliers aware of all the relevant
information regarding internal supplier and product selection policies.
Likewise, any modification to said policies will be informed prior to its
implementation.
The purchase and contracting of goods is carried out in compliance with
the regulations applicable to trade.
Likewise, it is developed in such a way as to ensure:
¨ Hire the suppliers that best satisfy the company's needs, at a rational
price and with real commitments to service and failure attention.
¨ The optimization of indirect costs (different from the purchase price) in
the administration of the supply process.
¨ Prevent possible failures of the supplier or the OLYMPICA-Supplier
interaction that lead to the occurrence of losses.
¨ Establish a relationship with a vision of the future and framed in a win-
win position.
¨ Ensure full monitoring of the supplier's activities, to prevent and avoid
problems generated by late deliveries, erroneous billing, etc.
OLÍMPICA will refrain from applying coercive mechanisms to suppliers
that are not objective and that have not been previously established in the
Operations Manual.
Suppliers, in order for them to access the defined marketing conditions.
OLÍMPICA undertakes not to unilaterally impose on suppliers unfavorable
conditions for the marketing and distribution of products, not to coerce
them to accept them, and not to decode their products, or to the suppliers
in the event that they do not accept the aforementioned conditions.
conditions.
OLÍMPICA undertakes to negotiate, within the framework of this Supplier
Manual, aspects related to the conditions for the handling and marketing
manual of products. Likewise, OLÍMPICA will refrain from applying
discriminatory commercial, financial and payment conditions between
suppliers with similar conditions.
OLÍMPICA undertakes to apply, within the framework of this Supplier
Manual, the commercial measures and decisions previously established in
this Manual or in the commercial agreements entered into with each
supplier.
1.1. Access to our supplier catalog
OLÍMPICA undertakes to make available to suppliers all the relevant
information regarding its supplier and product selection policies, and not to
adopt measures or decisions that do not correspond to the previously
informed policies.
For the internal registration of suppliers, it is essential that the following
information be provided in writing; this must be presented to the
commercial area in any of the cities where there are OLÍMPICA points of
sale:
− Commercial conditions offered, which must include: Description of the
items, prices, type of discount to be granted (commercial or financial),
payment conditions and returns system.
− Product licenses and registrations (import license, health registration,
etc.) according to the applicable standards and required by the competent
authorities.
Additionally, suppliers will provide a sample of the product for the
Commercial Committee to carry out acceptance studies.
1.2. Commercial Committee
Decisions related to the acceptance of national and foreign suppliers will
be made by the Commercial Committee, which will be made up of the
following officials:
− Commercial Vice President
− Perishables Manager
− National Food Director
− National Director of Drug Stores
− National Purchasing Manager Sao
− Miscellaneous National Director
The Commercial Vice President will chair the committee and will attend all
convened meetings in his own right. Manual The other members of the
Commercial Committee will attend those meetings where issues related to
suppliers in their respective areas will be discussed.
Those officials from the commercial area who are not part of the supplier
selection committee, but who due to their specialty can provide criteria for
decision-making, may be invited to the meetings.
The Commercial Committee will meet ordinarily once a month and in an
extraordinary manner due to special circumstances.
The decisions of the Commercial Committee will be made by majority.
The functions of the Commercial Committee will be:
1.2.1. Functions of the Commercial Committee
⋅ Decide on the approval of registration requests from national and foreign
suppliers.
⋅ Decide on the approval of coding requests for new articles.

⋅ Recommend changes or modifications in the rules, policies and

procedures that regulate commercial relations between OLÍMPICA and
suppliers, according to internal and/or external circumstances or factors.
⋅ Decide on the continuity or withdrawal of suppliers and/or products.

⋅ Monitor and study product rotation, based on statistics that measure the
level of participation of each supplier1, in order to make appropriate
decisions.
To make its decisions, the Commercial Committee will study the
documentation presented by the supplier, the commercial conditions
offered and will take into consideration, in addition to full compliance with
current legal requirements, the following:
• The quality of the product (according to the sample) and rotation level,
which must be previously defined according to the type of product.
• That the product corresponds to an OLYMPIC category.
• The number of existing references in the category that is intended to be
coded.
• The availability of space between the shelves.
• The product is coded as long as, due to quality or commercial conditions
of purchase, it is superior to any other product already coded.
1.3 Coding:
A supplier is considered to have been coded when it has been assigned a
number that identifies it in OLÍMPICA's internal supplier registry.
1.3.1. Article Coding
Article coding is understood to be the process by which, prior approval by
the Commercial Committee, the merchandise whose commercialization is
carried out at OLÍMPICA points of sale is entered into the system.
Once a supplier's entry is accepted, OLÍMPICA will assign an internal
identification code or number to each of its items. This code is different
from the reference used by the supplier to identify its products.
1.3.2. Principles and general rules of article coding
• The consumption unit constitutes the basic level of identification. It is
understood as such, the unit that is presented to the consumer at the point
of sale and constitutes a purchasing unit for the consumer.
Any variation made to a product (format, color, packaging, presentation,
etc.) that modifies one or more of its essential characteristics, necessarily
implies a change in identification.
As a general principle, promotional variants, the grouping of several units,
must carry different codes.
• The supplier that changes any of the essential characteristics of its
product and therefore changes the code that identifies it, must
communicate said change to the Commercial Area of OLÍMPICA located
in Barranquilla with a minimum notice of 3 weeks, in order to that the
information is updated and the modification is made in the company's
Commercial System.
• According to the regulations of the Colombian Institute of Codification
and Commercial Automation (IAC), the minimum period to reuse the code
that identifies a missing product is three (3) years, counted from the
For promotional products, whose stay on the market is a maximum of
eight (8) weeks, this period is one (1) year, therefore, those suppliers who
wish to modify their barcodes must comply with the provisions of these
standards.
1.3.3. Requirements for coding:
If the Commercial Committee decides to link a new supplier, you will be
informed in writing and you must fill out the Supplier Information form,
attaching the following documents:
• Certificate of existence and legal representation of the Chamber of
Commerce, if it is a legal entity and Certificate of registration if it is a
natural person.
• Copy of the Single Tax Registry (RUT).
• A voided copy of an invoice from the supplier and the city where you
want your invoices paid.
The assignment of the code or internal identification of the new supplier
depends on the provision of the previous documentation.
If the supplier's request is rejected, this situation will be communicated to
you in writing.
1.4. Reasons for decoding
OLÍMPICA undertakes to determine the objective parameters to decode
references, brands or product lines, which will be contained in the
agreements entered into between OLÍMPICA and its suppliers, without
prejudice to those provided for in this Manual. Any decision aimed at
decoding references, brands or product lines will be based on prior market
analysis and will be motivated by OLÍMPICA, based on the established
objective parameters.
The Commercial Committee will decide on the decoding of a supplier, if
any of the following situations arise:
• Non-compliance with legal regulations by the supplier
• Order of competent authority
• Deterioration of product quality attributable to the supplier
Low rotation, which will be established taking into account the average
rotation of the products of the corresponding category in a period of six (6)
months. For Supplier Manual to measure the rotation of a product in a
certain period of time, the OLÍMPICA commercial system has a
commercial system statistic, called Inventory Days2.
Low level of service or repeated non-compliance with agreed product
deliveries. The level of service of a supplier can be appreciated taking into
consideration the conditions established in the Order Note (such as
quantity, references, values, dates) deliveries at the location and at the
established times. OLÍMPICA's commercial system allows measuring the
level of service with management indicators, which manage the point of
sale according to the categories of the different products and the needs of
the point of sale. The indicator is called “Supplier Compliance”, it allows
you to compare the number of references ordered with the total
merchandise delivered. This comparison can be carried out basically by
references, values or units.
It is also possible to determine the delivery time and the number of times
the supplier attends a point of sale. In the first case, the time elapsed
between the date of delivery of the Purchase Order to the supplier and the
date of re-option of the merchandise by OLÍMPICA is measured. In the
second case, it has been established, in general terms, that a good level
of service allows the supplier to attend a minimum of four (4) orders per
month.
• Unfavorable purchasing conditions compared to the rest of the market.
To determine these conditions, the contribution margin of the product and
market share according to the category will be taken into account.
Additionally, OLÍMPICA will carry out surveys or price checks with
competitors, taking into account that in the market the categories are
managed with margins known to all participants. In such a way that, based
on the price checks, OLÍMPICA will be able to determine if the supplier's
price conditions adjust to those of the market. Otherwise
OLÍMPICA will make its best effort to renegotiate the conditions with the
supplier. If an agreement is not reached, OLÍMPICA may choose to
decode the supplier.
The decision to decode a supplier that is under any of the conditions
established in the previous paragraphs will be autonomous of OLÍMPICA,
but the supplier must be informed in writing, ten (10) calendar days in
advance and have the written approval of the National Director of
OLÍMPICA, depending on the category to which the product belongs.
Once the supplier has been notified of the decoding decision, they will
have a period of ten (10) calendar days to process the return of the
decoded products. Regardless of this, the provider may submit, through
the procedure described in point nine (9) of this Manual, the observations
that are considered necessary for its particular decoding process, which
will be reviewed by OLÍMPICA. Suppliers Manual.
2. Promotional Activities
2.1 Definition
Promotional activities are a set of commercial activities whose purpose is
to intensify the company's sales, stimulating the customer's purchasing
decision.
These activities can be:
• High impact and advertising investment, such as “Olympics and
Anniversary”.
• Significant but more limited advertising investment, such as Easter and
Olympic Super offers.
• Low advertising investment, which is generally carried out at a local level,
such as the reopening of a point of sale.
Annually, OLÍMPICA designs a commercial calendar in which all the
promotional activities that will be carried out in a given period of time are
projected. OLÍMPICA will inform suppliers in advance about the
requirements and incentives to participate, voluntarily, in promotions
related to the opening of new stores, promotional calendars and
anniversary events.
2.2. Goals
OLÍMPICA's promotional activities are designed not only to increase sales
for a certain time but to develop a longer lasting relationship with the
customer. The promotion must build loyalty with current and potential
customers, as well as introduce new services to new customers.
OLÍMPICA will refrain from setting predatory prices. Likewise, OLÍMPICA
will refrain from setting retail prices below the purchase price of the
product, except in the case of special promotional events (Anniversaries,
Inaugurations) in which it has the sponsorship of the supplier or for other
reasons. such as imminent expiration, discontinuity, end of season or
damaged products.
2.3. Participation of suppliers in promotional activities of
OLYMPIC
Depending on the promotional calendar and if the supplier agrees to join, it
is agreed in a particular and individual manner, with each of them, their
commercial participation (discounts, offers, etc.) as well as the investment
that each of them will make to the development of OLÍMPICA's own
promotional activities.
OLÍMPICA undertakes to apply, objectively, the policies and measures
previously established in this Manual and in the negotiation held with each
supplier.
Only those suppliers who have so determined in the percentages and with
the characteristics previously agreed between them and OLÍMPICA will
participate in promotional activities. The intervention of suppliers in the
promotional activities carried out by OLÍMPICA will be voluntary and under
no circumstances will the supplier's decisions in this regard affect its
relations with OLÍMPICA.
Suppliers are free to negotiate their participation in OLÍMPICA promotional
activities. OLÍMPICA undertakes to refrain from applying sanctions or
retaliation to suppliers who decide not to participate in these events.
Likewise, OLÍMPICA undertakes to respect commercial policies that
suppliers negotiate with other chains or hypermarkets, without them giving
rise to retaliation, pressure or demands that do not take into consideration
objective criteria such as purchase volumes, points of sale and specific
conditions. negotiation, among others.
OLÍMPICA will refrain from applying pressure in order to demand from
suppliers conditions equal to those granted to other chains, without taking
into account the objective parameters indicated above. The
aforementioned parameters will be informed or agreed with the suppliers
before their application.
However, OLÍMPICA may respond commercially to the promotions of its
competitors based on objective parameters established in the Supplier
Manual. As already noted, supplier participation in promotions related to
the opening of new stores, promotional calendars and anniversary events
is voluntary. OLÍMPICA will not force any supplier to participate in these
promotional schemes.
The above criteria will be informed to suppliers before publication.
3. Reception of Merchandise
The reception of the merchandise is carried out in the Distribution Centers
or in the
Points of Sale as agreed in the Purchase Order or Purchase Note
Order.
During the delivery of merchandise, the supplier must take into account
the following: Supplier Manual.
3.1. Comply with the delivery of merchandise on the indicated date in
accordance with the quantities and references requested in the
Purchase Order.
3.2. The minimum delivery frequency will be two (2) times per week at
all OLÍMPICA points of sale.
3.3. A minimum compliance percentage equivalent to 97% will be
required for 100% of deliveries to all points of sale, both in terms of
references and units.
3.4. Send the dispatch notice in advance.
3.5. In the case of suppliers subject to the Common Regime, you
must deliver the original of the sales invoice and one (1) copy. The
invoice must comply with the requirements established in article 617
of the Tax State.
3.6. If they are suppliers subject to the Simplified Regime and the
latter does not issue the invoice with the requirements established in
article 617 of the Tax State, they must sign the document equivalent
to an invoice that will be delivered to the supplier at the place of
delivery of the merchandise.
3.7. Invoice in the name of OLÍMPICA SA and identify the code of the
point of sale or distribution center.
3.8. Deliver a copy of the Purchase Order.
3.9. Verify that the barcode corresponding to the products delivered
match the barcodes of the Purchase Order issued by

OLYMPIC .
3.10. Organization and classification of merchandise in such a way as to
expedite the identification of references and delivery to the point of sale. In
particular, the classification of goods by references is required.
3.11. Organization, classification and packaging of merchandise to prevent
damage caused by transportation.
3.12. The merchandise is received by package, box or packaging, which
must indicate the following on the outside:
• Destination and point of sale code
• Merchandise description
• Indication of the handling of the merchandise
3.13. Correctly seal the boxes, avoiding violation of the Supplier Manual.
3.14. Make sure that the packaging can withstand the weight of the
merchandise it contains.
3.15. Receipt of the goods will be made through a schedule agreed upon
with the supplier.
3.16. Deliver the total amount of merchandise ordered
3.17. When the delivery is centralized (directly at the point of sale) the
freight charge will be determined by the Logistics area.
3.18. The transportation costs of the merchandise are the responsibility of
the supplier.
3.19. Merchandise will not be received when it is in poor condition or
exceeds the quantity ordered.
3.20. The period for payment will be counted from the satisfactory receipt
of the merchandise.
3.21. Communicate electronically and with due advance the reasons for
non-dispatch. Our system will take as a basis for the payment of invoices,
the prices and conditions in force in the Purchase Order.
4. Return of merchandise
OLÍMPICA undertakes to apply to all suppliers the objective criteria for the
return of merchandise contained in this Manual, without prejudice to the
fact that special conditions are agreed with some Suppliers in response to
their particular circumstances. The reasons for the return will be informed
to the suppliers on each occasion.
In order to optimize the controls of the merchandise return process, the
following classification of returns has been established:
• Return of merchandise upon receipt of an order
• Return of merchandise entered into the System
4.1. Return of merchandise upon receipt of an order OLÍMPICA will not
receive merchandise from the supplier when one or more of the following
circumstances occur:
• Merchandise invoiced but not ordered. Supplier Manual
• Merchandise in poor condition, with defects in its presentation, expired or
close to expiration.
• Items without barcode or with wrong barcodes.
• Items without origin labeling and whose order note specifies that they
must have it.
• Merchandise delivered with a shortage, that is, when the invoiced
quantity is greater than that physically received.
In the event that returns must be made for any of the above reasons, the
carrier or person in charge of delivering merchandise orders to our points
of sale or distribution centers must remove them.
The delivery of returns will be supported by a document called “News on
the receipt”, in which the items not received will be recorded, a document
that must contain the name and signature of the recipient of the point of
sale or distribution center, name and identification of the transporter and
vehicle plates.
4.2. Return of merchandise entered into the System
Except for reasons beyond the control of the supplier and when it is the
supplier who assumes the risks in accordance with the provisions of the
commercial agreement or the law, there will be a return of products after
having been entered into the system for one or more of the following
reasons:
• Merchandise that does not rotate or whose rotation is very low.
• Merchandise in poor condition, with poor presentation, expired or about
to expire.
• Merchandise on consignment not sold.
• Unsold seasonal merchandise.
4.3. Withdrawal of merchandise returned to the supplier Every time a
supplier delivers merchandise orders at a point of sale or distribution
center to the supplier's warehouses, they will be the responsibility of the
same supplier.
The suppliers' representatives will write their name and signature on the
return document, as proof of having been informed about this return.
Supplier Manual: Once the return document is signed and if within the
following thirty (30) calendar days the supplier does not pick up the
merchandise, they will begin to charge for storage from the date on which
the return document was signed. If the return is not collected within the
next thirty (30) calendar days, OLÍMPICA will cancel this merchandise,
and if it is in good condition, it will be delivered in the name of the supplier
to a charitable entity.
Likewise, if a supplier has been notified of a return and if its representative
does not appear within thirty (30) calendar days following notification at
the point of sale or distribution center to sign the return document, The
return will be made effective, automatically affecting your liabilities and
charging you with storage costs. If the return is not collected within the
next thirty (30) calendar days, OLÍMPICA will not be responsible for its
custody and if it is in good condition, it will be delivered in the name of the
supplier to a charitable entity.
Suppliers will be notified of new returns, through a note that will appear in
the next merchandise order requested.
The amount to be charged to a supplier for storage will correspond to a
monthly percentage equivalent to the current financial market rate at the
time of payment.
Warehousing expenses charged to a supplier will be deducted from its
liabilities.
As with returns made at the time of receipt of an order, and to guarantee
that the merchandise was effectively sent to the supplier, the return
document will record the name and signature of the carrier, the
identification of the vehicle, as well as the name , signature and seal of the
receiver of the point of sale or of the official of the distribution center who
dispatches the merchandise as a return.
5. Mechanisms for efficient inventory management
OLÍMPICA is committed to applying the necessary mechanisms for
efficient inventory management and self-service. The inefficiency of self-
service will not be grounds for the return of merchandise.
The inventory acts as a safety cushion between customer demand and
deliveries or replacements by suppliers, at the same time that it serves to
regulate the workloads in the receipt and to try to achieve the service level
objective.
Suppliers Manual.
The implementation of mechanisms for efficient inventory management
has no cost for the supplier; these mechanisms have been developed in
the interest of the supplier and OLÍMPICA, in order to obtain reliable
information directly from each of the points of sale.
5.1. Goals
The objectives to establish good inventory management are:
• Improve customer service
• Decrease exhausted
• Reduce inventory investment to an optimal level
These objectives are permanent and decisive to improve or preserve the
image, customers and continue in business.
5.2. Inventory Analysis
A useful and important tool for efficient inventory management is ABC
classification, cyclical inventories, control of negative balances and
analysis of the automatic suggestion report.
5.2.1. ABC Classification
It is logical to order the elements according to their importance with
respect to the whole, in this way aspects such as:
• A few products contribute most of the sales volume of a business. For
example, 20% of the articles represent 80% of the sales (in this case they
would be the “A” products of the classification) and the remaining 80% of
the articles contribute only 20% of the sales (case in which will be called
products B or C as the case may be).
Applying this principle to the inventory policy, it is shown how a small
percentage of products represent a large percentage of the total inventory,
this characteristic will allow the maximum effort and the strictest control to
be exercised on those products whose economic results weigh more on
the result of the operation.
Each of the possible groups of elements that can be classified by this
analysis will be called, respectively, products A, B or C, giving this
alphabetical order a meaning of economic valuation, crossing profitability
versus sales volume as follows:
Supplier Manual
Contribution to profitability High sales volume Medium sales volume Low
sales volume: High Highly profitable item, Moderately profitable item,
Display item Medium, High sales item, Moderate sales item, Assorted item
Low, Low profitable item, Item assortment, dead item
5.2.2. Cyclical inventories
Cyclical inventory allows you to control stock without having to close the
point of sale and with the advantage of always knowing what you have
and what you need.
To carry out the cyclical inventory, it is necessary to first know the rotation
of each product and the number of references handled by the stocked
point of sale. With this data, the number of references that must be
reviewed daily can be calculated.
If a product has high turnover (less than 15 days), the minimum count is
carried out six (6) times a year. For a medium turnover item (2 months),
the count is carried out three (3) times a year; the rest are reviewed two
(2) times a year.
5.2.3. Control of Negative Balances
The existence of a negative balance of a product means that an “output
movement” is recorded in the point of sale inventory files for an amount
greater than that available in the balance, therefore, it shows an error in
the processes.
To control negative balances, OLÍMPICA has established the following
control scheme:
• The administrative shift that is responsible for opening the point of sale
must print the negative balance report.
• Each of the section heads requests the list of negatives for their section
and coordinates the distribution of the products and the people who will
carry out the inventory both at the point of sale and in the warehouse.
• The same principles of the general physical inventory are taken into
account when counting each product. • Identify and communicate to the
people directly involved the real causes that generated each negative.
• Make the respective adjustment in the information system
5.2.4. Analysis of the automatic suggestion report
The analysis of the automatic suggestion report is another tool that the
OLÍMPICA commercial system has for efficient inventory management.
It is a numerical data that determines the decision on the quantities to
order from the supplier to avoid excesses or shortages of merchandise. In
general, this process allows for supply according to customer demand.
5.3. Information system
Inventory management at OLÍMPICA is supported by the use of
information technologies as an essential tool for the control and
processing of information.
The use of technology and the barcode makes it possible to reduce the
margin of error in the registration of information related to sales because it
displaces the unique identification through a scanner and the manual
recording of the data for its automatic capture ý online.
5.4. Supply Planning
The Supply Planning process is carried out in each of OLÍMPICA's points
of sale and integrates the functions and activities of ordering, receiving
and storing products. The methodology consists of jointly putting together
a calendar in which 100% of the suppliers that supply the point of sale are
included and daily measuring the compliance of both the suppliers on their
delivery day and ours on the delivery of the orders. shopping.
5.5. Purchasing process management indices
5.5.1. Inventory Management Performance Measurement
• Inventory accuracy: This indicator measures the degree of inventory
accuracy between theoretical data (system) and real data (physical). It is
measured in units and in pesos (at cost). To the extent that there is
accuracy in the inventory, the replenishment process will be reliable and
there will be no loss of sale.
• Obsolete inventory: This indicator measures the degree of inventory not
available to be marketed. It is calculated in pesos (costs). Determines
whether or not inventories correspond to the supplier's sales forecasts.
• Inventory rotation: This indicator shows how many times a product
rotates. It is measured monthly. Supplier Manual
• Inventory duration: This indicator shows how long the existing inventory
lasts.
• Out of stock level: This indicator measures the degree of inventory not
available for sale. It is calculated by reference. In general terms, it allows
the supplier and the supermarket to quantify and control sales losses.
5.5.2. Measuring Supply Planning Performance
This measurement system allows us to know the supplier's Compliance
Level in the following aspects:
• Reference service level (PLU's): Measures the performance and
compliance of suppliers according to the number of references ordered
versus the number of references shipped.
• Service level by units: Refers to supplier compliance, according to the
number of units ordered versus the number of units shipped.
• Billing errors in units: This indicator shows the errors made by the
supplier between what was billed (in units) and what was physically
shipped.
• Billing errors in pesos: This indicator shows the differences in prices
between the supplier's invoice and the purchase order against which the
order will be received.
• Compliance with on-time deliveries: This indicator measures suppliers'
compliance according to the agreed delivery time (lead time) and the
performance of the receipt process.
• Returns: This indicator measures the degree of returns made by each
warehouse to suppliers during a period. This inventory must be calculated
in units and in pesos (cost).
5.6. Technological structure
Our points of sale have information technologies (software or commercial
application that supports the entire commercial cycle of the product) that
allow the physical movement of the product to be registered and stored in
the system, in this way, they simplify, shorten and support the execution of
all the processes of said points of sale. Supplier Manual

6. Objective profitability parameters

OLÍMPICA's commercial system allows knowing the fulfillment of goals
and achievements related to the issue of profitability. OLÍMPICA
undertakes to agree with its suppliers on objective profitability parameters
for the execution of the commercial relationship. These parameters will be
informed prior to their application and evaluation during the calendar year
and will not respond exclusively to the list of promotions by competitors.
The measurement of this concept is done through the following
management indicators:
• SERVICE LEVEL BY REFERENCE (PLU's)
Refers to supplier compliance. Compare the reference number ordered
against the number of references shipped. This indicator indicates the
references ordered and not dispatched, as well as the references
dispatched and not ordered.
• SERVICE LEVEL BY UNITS
This indicator compares the number of units ordered against the number
of units shipped. It allows knowing the number of units ordered and not
shipped, as well as the units shipped, not ordered.
• BILLING ERRORS IN UNITS
Shows the differences or errors between what was invoiced (in units) and
what was physically shipped.
• BILLING ERRORS IN PESOS
This indicator allows you to know the price differences existing in the
supplier's invoice and the prices established in the purchase order.
• ON-TIME DELIVERY COMPLIANCE
This indicator allows knowing the level of compliance of the supplier's
deliveries by comparing the actual delivery time with the time established
or promised by the supplier.
• PRODUCTIVITY PER PERSON
Through this indicator we can know the productivity per person, per
Distribution Center and per warehouse. Suppliers Manual.
• ABSENTEEISM
This indicator measures the degree of absenteeism presented in our
distribution center and/or warehouses.

• COMPARATIVE SALES
Measures the growth rate in sales of the supplier's products by comparing
previous months and years.
• GROSS MARGIN
The difference between the purchase price and the sale price determines
the gross profit of the business, that is, profit before expenses. Gross
margin refers to gross profit as a percentage of retail price.
• INVENTORIES
This report shows stocks in units and in pesos at cost, indicated by
reference, section and by point of sale.
Additionally, it must be grouped according to the ABC classification of the
articles.
• INVENTORY ACCURACY
This indicator measures the degree of accuracy of the inventories between
the theoretical data (System) and the real data (Physical). It must be
measured in units and in weights (at cost)
• INVENTORY ROTATION
Shows the number of days the existing inventory lasts. It can be calculated
according to the budget and according to sales.
• INVENTORY PRODUCTIVITY
The productivity indicator compares gross profit with sales.
• OBSOLETE INVENTORY
This indicator measures the degree of inventory not available to be
marketed. It is calculated in pesos (costs).
• SOLD OUT LEVEL
This indicator measures the degree of inventory not available for dispatch
at points of sales and/or for sale. Supplier Manual
• RETURNS
Using this indicator we can know the number of returns made by each
point of sale or distribution center to the supplier during a specific period of
time.
• LATE TIME TO CHARGE VEHICLE FOR POINTS OF SALE
Measures the time used by distribution centers to load vehicles with
merchandise for points of sale.

• SALES PER SQUARE METER

Sales per square meter are used to compare the effectiveness of the
different sections into which a point of sale is divided.
• SALES PER EMPLOYEE
Measures productivity per employee.
• GROSS PROFIT PER SQUARE METER
The marginal value of this statistic determines the way space is
redistributed in points of sale.
• DIRECT UTILITY
Direct profit is a measure of profitability, after subtracting the identifiable
costs directly associated with a department's operations. It does not
include the distribution of general fixed expenses.
• SALES BUDGET COMPLIANCE
This indicator shows compliance with the sales budget (units and weights).
7. Merchandise costing system
7.1. Billing requirements
The invoice must contain the following information:
• Business name
• Home
• Number
• Supplier Manual tax identification number
• Quantity and description of the merchandise
• Type of merchant activity
• Unit price of each item
• Total price
• Indicate the amount of the invoice in numbers and letters
• Bar code of the articles

7.2. Conditions for payment of invoices

For the payment of invoices, the following conditions will apply:
• OLÍMPICA only recognizes as valid the purchase conditions agreed with
the supplier, which appear in the respective Purchase Order.
• The purchase conditions that OLÍMPICA applies, such as prices,
discounts and deadlines, are determined in the respective Purchase
Order. It is based on these conditions that invoices are issued.
• Payment is made in accordance with the prices and conditions in force
on the date of the Purchase Order, regardless of the date of delivery of the
goods.
• OLÍMPICA agrees with suppliers on different periods for payment of
invoices depending on the type of product. The minimum payment term is
fifteen (15) business days for some perishable products. In general,
payment terms respond, among others, to the financial discounts
previously agreed with suppliers.
• The payment period is counted from the satisfactory receipt of the
merchandise.
• OLÍMPICA undertakes to respect the agreed payment conditions or
those agreed with some suppliers based on their particular circumstances.

7.3. Content of the Purchase Order:

The purchase order must contain only the following information:
• Identification and address of the supplier
• Merchandise description
• Factory reference number
• Barcode
• Invoice number
• Order date
• Unit price
• Supplier Manual Total Price
• Discounts
• Payment conditions
• Place for delivery
• Date of delivery
• Signature of the person receiving the merchandise
8. Bill Payment
To proceed with the payment of its invoices, the supplier must appear at
the
City Treasury Department established for payment. The supplier may
choose only one of the cities where there are OLÍMPICA establishments
open to the public.
The supplier must present the Purchase Order, the citizenship card and
the authorization letter for the withdrawal of checks, if applicable.
Payments are made by check at the OLÍMPICA offices on Fridays of each
week. OLÍMPICA will keep proof of payment duly signed by the supplier or
the person authorized by it as payment support.
9. Dispute Resolution Procedures and Mechanisms
9.1. General Principles of the Mechanism
For any controversy that arises in relation to a supplier, both OLÍMPICA
and it are obliged to apply the procedures and mechanisms established for
this purpose in the Agreement on Good Industrial, Commercial and
Consumer Defense Practices signed between Andi, Acopi and FENALCO
on December 18, 2003.
The structure of the dispute resolution procedure must have 3 phases: 1.
Direct settlement. 2. Intervention of good offices of the unions. 3.
Intervention of a third party to decide the controversy.
9.1.1. Legitimacy and Compliance
In the event that any of the parties (Chain or Supplier) decide not to use
the procedure described in the Agreement on Good Industrial, Commercial
and Consumer Defense Practices and instead go to the state authorities
or any other means, such action will be will be considered as
reprehensible conduct: The decision not to process controversies through
said procedure will prevent the Chain or supplier that engages in said
reprehensible conduct from invoking in its favor the Good Practices
Agreement for that specific case, in the event that it arises. In this
situation, the affected party must report the case to the unions, which will
adopt the necessary measures to guarantee the applicability of the Good
Practices Agreement. Supplier Manual

9.1.2. Importance of Direct Understanding

OLÍMPICA and the suppliers emphasize that direct understanding
between them must be the main mechanism for resolving differences. At
any stage of the dispute settlement procedure established here, the
parties may terminate their differences by mutual agreement.
9.1.3. Mutual Prohibition of Retaliations
The dispute resolution mechanism enshrined in this manual will not give
rise during its process or once it is completed, in any case, to the
application of retaliation on the part of the suppliers or OLÍMPICA.
Likewise, the supplier and OLÍMPICA must refrain from disclosing the
controversy to the public.
9.1.4. Dispute Resolution Procedure
9.1.4.1. First Phase: Direct Fix
to. Presentation of the complaint and/or claim:
Complaints and/or claims will be presented and processed at the legal
address of the company against which the claim is made, unless the
parties agree to the transfer of the headquarters once this phase has
begun. In the case of micro and small suppliers, non-face-to-face
procedures will be facilitated.
Complaints and/or claims must be presented and processed individually
by the supplier and/or warehouse chain that is considered affected by the
conduct of the respective chain and/or supplier with whom it develops its
commercial relationship.
For this purpose, you must formulate the claim in writing, in which the
parts of the commercial relationship, the facts, the conduct and/or conduct
provided for in the Agreement that you consider violated, as well as the
reasons and evidence in which they will be violated, will be clearly
identified. is founded. The document will be delivered by mail or other
technical or electronic means addressed to the person with whom the
commercial relationship is managed, with a copy to the person or office
designated by the chain or supplier for the attention of the PQR.
In the event that several claims are made by suppliers or chains for the
same cause or conduct, the unions may participate in a private and
reserved manner, to facilitate the resolution of the dispute. Supplier
Manual

b. Opportunity for the formulation of complaints and/or claims.

In events in which there is nonconformity originating from the conduct or
situations established in this Manual or in the Commercial Agreement, the
parties to which it applies must formulate the respective complaint and/or
claim within ninety (90) days. following the date on which the affected
party had or should have had knowledge of the respective conduct or
situation. Once such period has elapsed, it will be understood that the
opportunity to make the claim has expired.
c. Timely and adequate attention to complaints and/or claims.
OLÍMPICA must respond in a timely and adequate manner to the
complaints and/or claims that are presented to it in the manner provided
for in the previous section.
For this purpose, all claims must be accompanied by the following
information:
• Full names and surnames of the applicant and address
• Object of the complaint or claim
• Reasons or reasons
• List of accompanying documents
• Signature of the petitioner
The claim must be in writing and accompanied by possible support for the
facts that are the reason for the request, complaint or claim. Once said
request has been filed with the buyer, the latter will immediately,
depending on the request made by the supplier, inform and guide the
supplier if the claim can be attended to directly by itself or otherwise,
inform the agency where it can be addressed. to have greater clarity on
the subject of your complaint
Example: accounts payable, supply, quality assurance, receipt, sales unit,
warehouse, etc.
Both the buyer and the agency that must respond to the request will have
a maximum period of ten (10) business days for non-accounting issues
and fifteen (15) business days for accounting issues, counted from the
date on which the supplier request.
If after the aforementioned term there has been no response to the
supplier's request, the supplier may request the intervention of the
Regional Purchasing Coordinator to clarify the request. Said official will
have ten (10) business days for non-accounting issues and fifteen (15)
business days for accounting issues maximum, to respond to the
supplier's request.
If for any reason there is no response to said request, it may be sent to the
National Purchasing Manager (Depending on the type of product), so that
he or she can clarify what happened. The term for responding will be a
maximum of five (5) business days for non-accounting issues and ten (10)
business days for accounting issues.
Responses to requests, complaints and claims made by the supplier must
always be made in writing.
Once the dispute arises, the parties may agree to extend or extend these
deadlines.
Once the period referred to in the previous point has expired without an
agreement having been reached to resolve the conflict, any of the parties
may take the dispute to the second phase of the procedure, regardless of
the degree of progress in which the dispute is. PQR process.
d. Effects of agreements or direct arrangements
The agreements or arrangements, partial or total, that result from this
phase, must be in writing and will produce the same effects of a
transaction. Consequently, the agreement will become res judicata and
will have executive merit.
9.1.4.2. Second Phase: Intervention of Good Offices by the Guilds
Once the previous procedure has been completed and exhausted, the
complaining party will request in writing delivered by mail or other
technical or electronic means to the union to which it is affiliated or that
represents its interests, to process the good offices intervention phase.
The union that receives the request to start the good offices phase, when
it considers that there is reason to do so, will notify in writing the union of
the claimed company about the initiation of this second phase. For the
development of good offices, the unions will act with total discretion and
caution, make contacts between them and provide a space for discussion
and dialogue between the parties in order to facilitate the resolution of the
controversy.
The work of good offices will consist of direct advice and the formulation of
private recommendations by each union to its respective affiliate or
advisor, as well as the generation of spaces and the facilitation of
discussions that allow rapprochement between parties.
In no case will the unions make public proposals nor will they be able to
make decisions regarding the controversy.
The good offices will be carried out by the bodies designated within each
of the unions. Supplier Manual When several complaints refer to the same
behavior, the unions may process them cumulatively in this second phase,
in order to find a common solution. The foregoing will not prevent the
processing of the first phase of the dispute resolution procedure.
For this purpose, the union that presents the accumulation must in any
case convene the union of the company against which the complaint is
directed.
In case of accumulation, the unions will limit themselves to formulating
proposals for agreement and understanding and will ensure that their
members participate in the discussions with a positive and constructive
spirit with a view to resolving the controversy.
This phase may not exceed 15 business days from the completion of the
previous phase. The unions may agree to the extension or extension of
this period with the acceptance of the parties.
The partial or total agreements obtained in this phase must be recorded in
writing and will produce the same effects as a transaction, that is, it
becomes res judicata and provides executive merit.

9.1.4.3. Third Phase: Mediation Committee

Once the good offices phase has been completed, without there being
total agreement on the controversy, any of the parties may convene a
Mediation Committee, which will be governed by the rules expressed
below.
The Mediation Committee will operate at the headquarters of the legal
domicile of the company against which the claim is made, unless the
parties agree to the transfer of the headquarters once this phase has
begun. In the case of micro and small suppliers, non-face-to-face
mechanisms will be facilitated for the development of this phase.
This phase may not last longer than thirty (30) business days from the
date of integration of the Committee. The parties may extend this period
by mutual agreement, once this phase has begun.
to. List of Professionals Eligible for Membership of the Mediation
Committee
Within ninety (90) days following the signing of this Agreement, the unions
involved will form a list of people of great reputation in the environment
and knowledgeable about the industry and the new commerce of the
chains, who must have domicile in Bogotá , Medellín, Cali, Barranquilla
and/or Bucaramanga.
This list will be reviewed annually by the unions. Supplier Manual The
unions will try to keep the people on the list informed and updated about
trends, technologies and in general about the advances of the new trade.
The unions will seek to integrate subcommittees in legal, technical,
economic and commercial matters, in order to support the work of the
Mediation Committee.
b. Regulations of the Mediation Committee
Within two (2) months following the signing of this Agreement, the unions
that sign it will issue a single regulation for the operation of the Mediation
Committee, which will contain at least the following elements:
• Eligibility requirements.
• Rules for the formation of the list of members, for permanence on it, as
well as the conflict of interest regime.
• Reasonable costs and fees.
• Way in which the unions, jointly, will determine the functioning of the
Committee.
• The other regulations that they consider necessary for the proper
functioning of the committee.
Failure to issue the regulations will not prevent the functioning of the
Committee.
c. Integration of the Mediation Committee
The dissatisfied party, within three (3) business days from the end of the
previous phase, will inform its respective union of its decision to convene
the Mediation Committee. For this purpose, it will send you a letter with its
arguments and the annexes that it considers pertinent. Said document,
with its annexes, will be sent to the union of the summoned company, in
order to inform the party against whom it is directed.
The costs for the operation of the Committee will be allocated within the
established term and in the manner established by the regulations.
Otherwise, the parties will be free to go to ordinary justice.
Within three (3) business days following the date on which the unions
have received proof of the allocation of expenses and fees, they will
proceed to hold a hearing in which the Mediation Committee will be
formed, in accordance with what is established. establish the regulations.
At said hearing, the summoned party will present in writing its response to
the claim, along with the annexes it considers relevant. Supplier Manual In
this phase, none of the parties may allege facts or violations other than
those already discussed in the previous phases. New facts or evidence
will only be admitted when the party that provided them was unable to
provide or know them in the previous phases.
d. Final Meeting
The controversy must be resolved in a single meeting, which will be held
within fifteen (15) business days following the Committee Integration
meeting, for which the parties will be summoned, indicating for this
purpose the date and place in which which will be carried out. The meeting
will be held in the manner established by the regulations and the decision
will be communicated to the parties no later than within twenty-four (24)
hours following the end of this meeting.
and. Content and Effects of the Decision
The decision will be issued in the manner indicated in the regulations and
will establish whether the behavior or behaviors complained of violate the
Good Practices Agreement. The Committee will not make
pronouncements on the violation of other legal systems.
In the event that the decision qualifies the claimed conduct or conduct as
contrary to the Good Practices Agreement, it will formulate the
corresponding orders, so that the conduct and orders given to the offender
have the effects of a transaction.
Likewise, the Mediation Committee will urge the parties to reach an
agreement within 10 business days on the improvement of their
commercial relations and compensation for prejudice when this occurs as
a result of the violation of the Agreement. The agreements reached by the
parties will have the effect of a transaction, consequently it will become res
judicata and will provide executive merit.
The Committee, with the advice of experts, will proceed to formulate a
recommendation on the solution of the dispute in its commercial and
economic aspects.
The costs of the expert procedure will be borne by the party that
committed the infraction.

10. Merchandising logistics operation

OLÍMPICA undertakes to negotiate with its suppliers the cost of logistics
operators at the point of sale that are necessary for the marketing of the
product.
Unilaterally, OLÍMPICA will not impose any payment for this concept.
Suppliers Manual.

10.1. Definition
The merchandising logistics operation is the process of efficient
merchandise management with the purpose of supporting the daily
operation in relation to the assortment, display and control of items in each
of the product categories, thus providing excellent service to the customer.
customer.

10.2. Benefits obtained from the implementation of the logistics

operation
• Benefits for OLÍMPICA
• Efficient assortment in the display shelves from the opening to the
closing of the points of sale, including Sundays and holidays.
• Reduction of out-of-stocks on the shelves attributable to the Operation,
due to the permanent presence of the supplier at the point of sale.
• Change in product assortment policies by brands, categories or shelves.
• Permanent supervision at the point of sale, through the operator's
supervisor.
• Reduction in merchandise leaks and breakdowns due to excess
handling.
• Administration and control of the human resources assigned to the
Operation.
• Elimination of space wars on shelves by suppliers.
• Proper balancing of point of sale inventory (Reduction of merchandise
inventory with little or no turnover).
• Correct application of merchandising techniques and practices.
• Benefits for the supplier.
• Display and assortment of your products on the shelf in all points of sale
that are in operation.
• Adequate management of product rotation.
• Reduction of direct merchandising personnel.
• Reduction in operating costs. Supplier Manual
• Direct communication with Olímpica.

10.3. Service cycle

The merchandising logistics operation at Olímpica solely and exclusively
contemplates the management of the following activities by the operational
staff:
• Front or merchandise
• Cleaning of merchandise and shelves
• Unload merchandise on receipt
• Storage of merchandise in warehouses
• Merchandise marking
• Assortment of merchandise
• List of cyclical inventories
• Out of stock product information report
• Troubleshooting
• Refill
• Carrying out inventories at points of sale
10.4. Organizational structure
10.4.1. National Director of Merchandising Project
Responsible for the planning, direction, coordination, supervision and
evaluation of merchandising operations at points of sale, in order to
achieve optimal commercial performance of the merchandiser staff and
contribute to the improvement of the commercial and financial results of
the company and their relationships with suppliers. Reports to the
Commercial Vice President.
10.4.2. Logistics coordinator by Operator/Regional
Coordinates the logistics operation service at the different points of sale, in
such a way as to achieve:
• Homologation of the service
• Optimization of processes
• Timely attention to suppliers and OLÍMPICA in solving problems related
to the provision of the service and maintenance of the standards defined
at the points of sale.
The Logistics Coordinator reports to the Operator's Regional
Management. Suppliers Manual.
10.4.3. Point of sale supervisor
Responsible for the administration and coordination of the group of
assortment assistants, in order to carry out an efficient Operation. It is also
responsible for the implementation and application of OLÍMPICA
guidelines, regarding assortment and display, at the point of sale. Reports
to the Logistics Coordinator and the Point of Sale Manager.
10.4.4. Merchandising Assistants
They participate in unloading, storage, cleaning, fronting, assortment,
replenishment, and carrying out cyclical and semi-annual inventories at
points of sale. It is also responsible for the marking of merchandise and all
tasks related to the management of exhibitions, guaranteeing compliance
with the plans defined by OLÍMPICA. They report to the Point of Sale
Supervisor.

10.5. Levels of responsibility

In order to maintain permanent communication with suppliers and provide
immediate solutions to their concerns, the following levels of responsibility
were established:
10.5.1. The point of sale manager is responsible to OLÍMPICA and the
supplier for:
• Direct attention to the supplier
• Orders
• Additional exhibits
• Offers
• Negotiations
• Out of stock
10.5.2. The Operator Supervisor reports to the Point of Sale Manager
for:
• Compliance with exhibition strategies
• Efficient assortment
• Compliance with shifts
• Personnel management
• Personnel replacements
• Support in the management of supplies to the administration of the point
of sale
10.5.3. The Merchandising Assistant responds to the Point of Sale
Operator Supervisor for:
• Merchandise frontage
• Supplier Manual Merchandise Receipt
• Cleaning of the product on the shelf
• Assortment and refill
• Product marking
• Other activities inherent to their work
10.5.4. The supplier is responsible for:
• Supervision of the Operation
• Permanent training for merchandising staff at points of sale regarding the
handling and display of products.

10.6. Process for addressing complaints and claims

All questions, complaints and claims from the supplier regarding the
merchandising logistics operation process must comply with the following
procedure:
Every eight (8) days a Supplier Supervisor must fill out a form called “Visit
Report” in which he will evaluate at each point of sale:
• The display: If it adjusts to the display models that the supplier manages
for its products.
• Prices: The correct marking of products according to sales prices, as well
as for offers.
• The out of stock level: Establish that the coded products are displayed
and not out of stock.
• Orders: Determine that orders are placed according to rotation needs
according to the nature of each product in each of the points of sale.
• Additional exhibitions: Check if these work as agreed between
OLÍMPICA and the supplier.
Said report must be presented to the Operator's Supervisor, for their
information, both sign the form. This information is subsequently sent to
the Point of Sale Manager, who will also sign it as proof of receipt. The
manager will meet with the operator's supervisors to take the necessary
corrective measures or resolve the Supervisor's concerns within a period
of no more than eight (8) calendar days.
After the previous term has elapsed, at the next hearing of the Operator's
Supervisor, if the supplier's claims have not been resolved, it will be
recorded in the Visit Report, but this time the Manager must send a copy
of it to the Director of
Regional Operations and the Director of the logistics operation, who will
take the necessary corrective measures depending on whether it is a
responsibility of the manager or the operator.

10.7. Payment system for merchandising logistics operation

OLÍMPICA will invoice monthly the amount to be paid by each of the
suppliers who receive the merchandising service through the issuance of
the support document that is generated by the system of the Credit and
Portfolio Department, in accordance with the number of hours of service
previously agreed upon. with the provider. This value is automatically
deducted from the suppliers' liabilities, through the Accounts Payable
Department system.
The above is generated by software that contains all the information on
the number of hours of each of the suppliers per point of sale, which feeds
the billing process of the financial software (JD Edwards). Olímpica agrees
with suppliers on the number of service hours for handling products at
points of sale, taking into account the volume of purchases and the profit
margin by product categories.
All the conditions indicated regarding the logistics operation are supported
in the commercial offer of services with which Olímpica formalizes the
merchandising service and its collection from suppliers.

10.8. Sections of the logistics operation

The logistics operation service applies to suppliers of the grocery (01,
08,14), household (21), liquor (26), and bakery (06) sections. Suppliers of
dairy products, cold meats, fruits and vegetables are excluded from
management.

10.9. Costs related to rate setting

The costs that are taken into account for setting the hourly rate in the
logistics operation are exclusively the following:
• Salary of the supplier, supervisor, operator coordinator and
supernumeraries
• Payments on Sundays, holidays and overtime
• Payment of overtime for carrying out inventories
• Night surcharge payment
• Social benefits
• Bonuses to suppliers in charge
• Disabilities
• Supply (uniforms) Supplier Manual
• Work implements
• Operator administration costs
• Information to suppliers about sales, out of stock, prices by PLU,
inventories (by prices and by units).
10.10. Values added to the logistics operation service
OLÍMPICA benefits from handling through the contracted logistics operator
by obtaining added values in the service, such as:
• Know How in the merchandising operation
• Experience according to years of services applied to the scheme
• Infrastructure throughout the national territory
• Staff pick
• Permanent training to the human resources that execute the operation
• Provision of statistical information, which refers to: Personnel
management, price management, Inventory Management, Survey of
suppliers and customers on service, Out of Stock Summary.

11. Confidentiality
All documents and information that are incorporated into this supplier
manual, as well as all the information that OLÍMPICA provides to the
recipient thereof, or that the latter obtains by virtue of the contractual
relationship that is established between the parties, are considered
information. reserved and confidential. Therefore, whoever becomes
aware of this manual or any documents related to it, by any means or
under any circumstances, will not be able to reveal their contents. Nor use
it for your own interest or that of third parties.
Violation of the reservation obligation provided for in this clause will make
the recipient of this manual or the documents related to it liable civilly and
criminally, in accordance with the provisions of the corresponding
regulations.

12. Validity and Modification

This manual will govern OLÍMPICA's suppliers from its official publication
and will be valid for one (1) year, extendable annually. The content of this
manual may be modified by OLÍMPICA with at least thirty (30) days' notice
to the suppliers. before its entry into force. Suppliers Manual.
Suppliers may, in that period of time, make comments on the
modifications, which will be received and analyzed by the company.
While during the monitoring period of the guarantees offered to the
Superintendency of Industry and Commerce, the modifications that are
introduced to the manual will only take effect once said authority gives its
approval .
LOGO
 SLOGAN
ALWAYS LOW PRICES ALWAYS
 DIAGNOSIS OF THE INTERVENTION AREA
The STO on 30 de Agosto Avenue # 36-10 in the city of Pereira, which
has more than 15,700 references, with a warehouse space of 1,054
square meters, consists of three floors, divided into the grocery area,
appliances and receipt. With the collaboration of the inventory control
area, the warehouse and warehouse spaces were reviewed, finding them
in order, the merchandise is stored according to its category, perishable
and non-perishable, for example personal hygiene, cosmetics, liquors,
provisions (oils, drinks , pets and snacks), the refrigerated and frozen
items are stored in the refrigeration and freezing cellars. In the storage
areas, different flaws were found, one of which was evidenced by the
deterioration in the cellars, since there are no tiles at the entrance, causing
ice to form, which can cause accidents and deterioration of the
merchandise; Likewise, leaks were noticed, which intensify when it rains,
wetting the merchandise, making it unsuitable for sale; Rodents were
detected, which consume the merchandise in the warehouse, causing
breakage in the packaging; There are missing pallets in the warehouse,
merchandise was found on the floor and stored next to the wall, violating
the storage policies managed by Olímpica; Cross contamination was
found, which occurs when household cleaning products such as
disinfectants are stored together, next to food, causing the latter to have
changes in their components and be dangerous for human consumption;
Finally, it was determined that the references that are wasted the most are
brand name pastas.
The STO located on August 30 in the city of Pereira is the only one in the
coffee district that has a person in charge of storage management, so the
previous inaccuracies should not occur.
The Olympic super store has a winch to raise and lower the products
according to needs. In the storage area there are divisions for the products
that are part of the grocery section.
appliances, liquor, bakery and personal hygiene. The warehouse does not
have a closed security circuit. The food sections are organized like this:

Frozen
Home toilet
Personal cleanliness
Dairy
pass mouths
pet food
The person in charge of receiving the merchandise is the receipt manager,
who gives entry to the different products, verifying that the quantities,
references and expiration dates are in accordance with the orders placed.
In the super store there are 15 logistics operators, the personnel who store
the products and organize them on the sales floor, who are in charge of
each grocery section in two shifts. These people order the products on the
shelf, as well as control the date. of expiration and the merchandise that is
in poor condition, delivering it to the receipt manager, who is in charge of
making the pertinent returns; When there are cancellations due to
deterioration or when the merchandise does not comply with the return
policies or is in agreement, the receiving manager requests the support of
the inventory control area for the destruction of the merchandise.
A tool for inventory control is the SAP information system, which compiles
all the information on the entry and exit of merchandise, which covers
purchases, transfers, transfers, bonuses, shipments, returns, breakages,
consumption, cancellations of merchandise and sales, which pass into the
system through an interface to the IBM POS sales system managed by
the company. This system serves to maintain correct balances and be
able to use control indicators as automatic suggestions. SAP allows the
entry of cyclical inventories of different products on a monthly basis, which
are carried out according to the inventory control schedule or the business
need established by the administration and logistics operation. These
inventories account for losses due to theft, determining which
They are the most filtered products and the percentage of filtration on
sales, which according to the company cannot be higher than 0.5%. SAP
is also an information tool, it is used to know which merchandise is about
to be entered, if there are products in transit between the different
businesses, which merchandise the warehouse accepted and which not,
this in order for the inventories to show real results. Losses known as
cancellations, customer consumption and breakage are charged through
SAP; this is carried out by the business liquidator. Olímpica currently has
two indicators, the first is inventory days, which is developed by comparing
budgeted sales with accumulated sales for the same period; The second
is the automatic suggestion, which is a tool for administrators to establish
how many quantities of a reference they should order, based on the sales
of the different products per day.
The company Olímpica SA cancels products that are in poor condition,
poor presentation, due to obsolescence, deterioration and expiration
dates, which occur when logistics operators do not detect products on the
shelves before their expiration. Olímpica has a list detailing how many
days and months the products must be removed from the sales floor; this
is handled by the logistics operators, as already mentioned.
With an improvement in storage management, losses would be controlled,
because if products close to expiration are detected in time, they can be
returned to the supplier so that he is the one who assumes the loss and
not Olímpica, the return process consists of several states. , state zero is
the time to enter the merchandise as a return to the supplier; After 15
days, it automatically goes to state two, where the merchandise is
considered to be from the supplier; If the latter does not collect the
merchandise within the next 15 days, complying with a storage time, which
generates a cost for the company, it goes to state three, so that the
merchandise is subsequently destroyed or donated being in state 5, the
above It is done through SAP, this allows status changes to be made
automatically.
The merchandise shows deterioration due to poor storage, as there may
be dents, damage to the lids, breakage of the packaging, the expiration
date being erased or the brand on the packaging itself. For the main
Olympic superstore, the losses of the last 5 months were averaged giving
a total of $506,491. This value is high because it is considered that for
every $50,000 that is written off, this being the cost, the business must sell
$10,000,000 to cover the loss, that is, it is 0.5% of sales. The same
happens with losses due to deterioration, if basic rules are followed such
as not packing more than allowed, the merchandise will not suffer
damage, because as is known, if more weight than allowed is placed on
top of a box, the merchandise will suffer damage.
With the indicators that will be proposed in this work, you can verify and
measure the turnover volume to know which merchandise rotates more
slowly, which is why it is at risk of deterioration and using unnecessary
resources, and also measure the real amount of losses. Therefore,
storage and inventory indicators are of utmost importance for companies,
since through them decisions can be made that optimize processes, in this
case storage, so that the company has greater control of its merchandise,
being Inventory is the most important point within Olímpica, since this is
what generates the company's income and is what generates profits.
Having greater control will make the company more competitive and
profitable.
 WHAT IS SEARCHED WITH THE INTERVENTION

Through practical work, we seek to establish a plan to improve the storage

of the different references that are part of the grocery section of the
Olympic super store on August 30 in the city of Pereira. This will be
achieved through the creation of a portfolio of indicators, which will help
the organization to control, measure, verify, inspect and compare storage
management.
It is necessary to intervene in the storage of the products of the main
Olympic super store in the city of Pereira, since storage gives added value
to companies, since if there is adequate storage, the losses that occur at
the time would be significantly reduced. within the company due to losses
such as breakage, mishandling of products by logistics personnel,
detecting expiration dates in time to return them to the supplier.
By measuring losses, businesses can make decisions to reduce the
quantity and cost, making greater control over the merchandise, since
sometimes it is unknown when a product is close to its expiration date and
good storage practices are indebted, inspect It is an important function
that can be done through indicators, as it examines and verifies the
causes of losses and deterioration of the merchandise, finally measuring
the losses of the merchandise, quantifying them. An indicator helps to
improve the quality of service in companies, in this case Olímpica, this
being important with the great competition that exists in the city of Pereira
due to the number of supermarkets that exist in the city, where companies
must contribute each once again to excellent customer service, always
having the different products in the family basket on hand.
The storage of the store is carried out by the logistics operators with their
corresponding coordinator, the inventory control area, controls the
management, verifying how the business is developing, to detect possible
problems and inadequate practices.

Finally, among the functions delegated by the immediate boss, who has
the position of coordinator of inventory and loss control, is to verify that the
different businesses daily record the waste of both the fruit and bakery
sections, as well as that the businesses comply with the recording of
losses due to breakage, bonuses, transfers between businesses, daily
production records, among others; Likewise, support is provided in the
different general inventories of the district's businesses, with radio
frequency recording of the winery and cellars. On the day of the inventory,
the different lots are printed, which are part of the bodies or shelves of the
line of products. the store, also with the correction given for bad counts;
Likewise, businesses are supported with cyclical inventories, giving timely
answers to questions about the good development of the inventory;
Finally, when each business is visited, the practitioner carries out
merchandise deletions with the receipt manager. This consists of
removing from the inventory the merchandise not suitable for sale and
consumption by customers, the cellars and storage are reviewed. of the
different references to make the respective notes to the administrator or
manager of the business.

JUSTIFICATION OF THE INTERVENTION

This work brings as a novelty the creation of indicators for the company in
the storage part, useful to measure, control and verify said management,
bringing high added value to the company, with greater productivity and
efficiency within the warehouse. These indicators complement the
existing ones to establish a more comprehensive control system.
It also helps the organization of the warehouse, making it easy to locate
the products, detecting errors in the system that they have been
implementing and highlighting the things that are being done so far. This
work is aimed at the logistics operation people, the warehouse manager
and the food manager of the Olympic supermarket located on August 30,
as they can organize the warehouse in a better way and do things in a
simpler and more practical way. his work; Likewise, it is aimed at the
warehouse, since with the decrease in losses the profit margin will be
positively affected.
The lack of indicators hinders important processes such as the control and
administration of the different grocery products. With SAP, various alerts
can be created, such as expired products. This helps them to be detected
in time to carry out returns. the different suppliers and help reduce losses
in this area. For this reason it is important for Olímpica to have indicators;
it has an important information system such as SAP, which has multiple
functions, which must be used and exploited for the benefit of the
organization.
The cancellations due to expiration, obsolescence and deterioration add
up to a total of $506,491, this value is the result of the average of the last
5 months, resulting in a high value. The work seeks to measure, compare,
inspect, verify and control the losses of the different products, through a
series of indicators, the above allows the organization to have
percentages and figures of the real state of the warehouse, to know what
the products are. with less turnover and make decisions about it, which 22
shows that the indicators are an important tool that companies must have,
SAP is a powerful information system within the company, which can be
complemented with the indicators.
 PRESENTATION AND ANALYSIS OF RESULTS

A series of indicators were found, which collaborate when measuring,

controlling and verifying the storage management of STO 1351, they are
listed below:

Merchandise duration index = Average monthly sales

Average monthly inventory

Indicates how long the inventory lasts in the warehouse. If the indicator
shows a high result, it shows that there are too many resources used in
the inventory, which do not add value immediately, running the risk of
merchandise being lost or suffering from obsolescence. It allows you to
know how many times the inventory is converted into real money. The
lower the duration, it means that the merchandise is in the warehouse for
less time, suggesting good administration and management of inventories.
Inventory policies generally state that turnover must be high, so that
merchandise does not deteriorate or become obsolete.

The indicator was applied for the months of May, June, July, August,
September and October 2012, during this time no major changes were
perceived, since the inventory has a rotation once a month, having its
peak lowest in August with 1.03 times. The merchandise lasts in the
warehouse for 30 days from its arrival, which demonstrates optimal
demand from customers and efficient storage, which makes it easier for
the merchandise to be released in a short time and the different
references do not accumulate inside the warehouse. To reduce the risk of
deterioration, complying with the policies of having a FIFO-type inventory,
it is worth clarifying that this indicator is currently managed by Olímpica,
on which purchases are based, measuring the level at which the
merchandise leaves the warehouse.

Inventory quality = Damaged +obsolete +expired units

x
100
Available units Inventories

The indicator shows the number of merchandise not suitable for sale
due to obsolescence, deterioration, damaged, in poor condition and
expiration dates. It is closely related to poor storage practices, since the
merchandise is damaged or deteriorates because of this, evaluating the
units that the company stops selling and therefore the decrease in
profits.

This indicator was applied for the months between May and October
2012, a uniform series was obtained without major changes, where the
highest peak occurred in June with 0.37% of the merchandise not
suitable for sale, due to expiration. , rodent damage, deterioration or
obsolescence, inventory quality is good with more than 97% for all
months. But this indicator can improve, establishing small changes in
the warehouse infrastructure, such as new shelves and pallets, so that
the merchandise meets requirements such as not being on the floor or
attached to the wall, facilitating cleaning and fumigation tasks, since it
was detected that part of the deterioration of the merchandise It was
caused by a rodent, making it necessary to carry out activities to reduce
said pest. Likewise, the warehouse can be expanded to accommodate
the merchandise efficiently, with the permitted weight, without packing
more than what is allowed. The above can be carried out in the old
fruver warehouse, which is an unused space.

Quality of orders generated = orders generated without problems x 100

Total orders generated

The objective of this indicator, which is done on a monthly basis, is to control

the quality of the purchase orders generated, measuring the number and
percentage of purchases generated without delays, so that there is no need
for general information, either because quantities are needed. of a reference
or there is an excess of them. Its impact is the increase in inventory
maintenance costs, as well as the loss of sales, since when the order is
placed, it means that Olímpica detects the consumer's need to have that
good, that is, the indicator is related with good customer service.

Used capacity = Warehouse quantities

Total warehouse square meters

This indicator measures how the warehouse should be organized,

indicating how many square meters are allocated for each unit, in order to
optimize the space in the warehouse, generating added value to the
warehouse, with the easy location of the different references. To
determine if there is idle space due to poor organization of the warehouse.
The indicator was applied with real information from Olímpica on Avenida
30 de Agosto, from May to October 2012.
 CONCLUSIONS

The STO 1351 has a good storage system, this is evidenced by the
optimal inventory duration, which takes approximately 30 days to leave
the warehouse. The volume of losses for the grocery section is low,
taking into account that in the last six months there were few items not
suitable for sale, although this number could be reduced by following the
stipulated storage policies, since the superstore It has several
shortcomings in its storage area, such as merchandise on the floor, stuck
to the wall and ceiling, and merchandise was found that exceeded the
weight limit, with up to 12 boxes being packed, deteriorating the
products.

Another point is the need of increase he designated

space to the storage of products from the food section, using the site
where the fruver warehouse used to be, since it is a space that is not
being used, the lack of this is evident when months such as December
approach, where the stock of the inventory is high, merchandise is stored
in the aisles and on the floor, running the risk that merchandise in poor
condition will increase.

The quality of the orders is good, they have a minimum margin of error,
but the graph shows that the trend is increasing, which is why measures
must be taken and worked hand in hand with the suppliers, so that they
comply with the stipulated agreements. before delivery, so that the super
store always has the merchandise for when the customer requests or
demands it.

In the storage area, products that generated cross contamination were

found. These products cannot go on sale since they can cause health
problems to the people who consume them, in addition to possible lawsuits
against Olímpica. Among the products, disinfectants were found next to
them. of milk, as well as breakdowns next to compotes, in a company of
that size, with a level of reliability on the part of the people, these practices
must be avoided, which make the organization look bad, where quality and
good service They are part of organizational policies.

STO 1351 has 15 logistics operators and a person in charge of the

warehouse. These must work in coordination with the receipt manager to
detect damaged merchandise in time, either to make returns to the
suppliers either for detect bad
practices storage, correcting them in time to
reduce the quantities of damaged merchandise, which affects the
business margin.