Photo: Reuters

On a daily basis, JBS – which is the largest animal protein company in the world – conducts negotiations with thousands of third-party suppliers, according to all legal and procedural parameters.

Since 2007, the company’s procurement area has been using Mercado Eletrônico’s B2B e-commerce solution; they have achieved gains in agility and performance still in the first year, making their negotiations even more strategic and assertive.

In this success case, after 13 years of partnership, we will show you some insights on how 95% of all JBS purchases made in Brazil travel through ME’s solutions.

Trust and governance in JBS transactions

Mercado Eletrônico’s B2B e-commerce solutions have been supporting the procurement area of businesses for 25 years. There are now over 1 million suppliers on the platform. As a Latin American leader, ME is undergoing international expansion, with offices in the United States, Portugal and Mexico.

According to Denis Peres, Procurement Administration and Control Manager at JBS Brazil, Mercado Eletrônico’s tool had originally the purpose of making automatic quotations, with full cycle control and information traceability.

“This is one of the key interaction points: the trust and governance of the whole flow transacted between JBS and our suppliers”, he stressed.

Mercado Eletrônico’s e-Procurement solution is the one most used by JBS

ME’s solution most used by JBS is the e-Procurement package, which enables more performance, governance, agility and savings, as it consolidates all requests, to track the full procurement cycle.

This tool offers a managerial view of orders, and automates the receipt of invoices for materials and services, among many other resources.

Luiz Gastão Bolonhez, Vice-President at Mercado Eletrônico, explains that having JBS as a customer was one of the greatest incentives for the company’s expansion to other countries.

“JBS was our first customer in several processes. They were the first to join ‘Plano Empresa’, promoted the opening of our office in Mexico, and challenge us on a daily basis with their high transaction volumes. Our partnership has encouraged a continuous improvement of services we provide to our customers”, he added.

During Coronavirus times, the plataform helped the company to keep on operating

To continue its production even in the midst of a pandemic, JBS adjusted also some negotiations with its suppliers.

“With people having their meals at home, the food services – such as restaurants and snack bars – have reduced their activities, while retail had an increase in demand. JBS had to be very agile to move its products – which before would have been directed to restaurants – to supermarkets”, said Vicente Zuffo, Global CPO at JBS.

“The digitization offered by ME’s platform streamlined this process, because the suppliers soon realized that the company changed the package type and manufacturing priority. Another important point of digitization was the flexibility that internal buyers now have to analyze the scenario, foresee new needs and realign demands with suppliers”. (Vicente Zuffo, Global CPO at JBS)

ME supported also JBS in the search for suppliers of items such as masks, caps, alcohol gel, cleaning products and face shields, among other personal protection products (which had an accelerated demand at this time), to ensure the safety of company’s employees in all their units.

Mercado Eletrônico’s ‘Plano Empresa’ promotes continuos improvement for buyers and suppliers

Jerson Nascimento Jr., CPO at JBS in South America, deems Mercado Eletrônico a great business partner.

“With ‘Plano Empresa’, for instance, we achieved results that are beneficial for both sides. The platform is an absolute success, because it allows generating revenue and continuous improvements in our processes and in the partnership itself”, he explained.

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