SUPPLIER DEVELOPMENT PROGRAM

Quirmex S.A. De C.V.

8. Decent Work and Economic Growth 9. Industry, Innovation and Infrastructure 17. Partnerships for the Goals

Overview

Quirmex is a 100% Mexican company that was born in the city of Puebla, Quirmex had its beginning as a company dedicated to the maquila of healing products, has grown rapidly within the market and has as competitors’ companies that have more years dedicated to this market. One of its greatest strengths and at the same time a source of pride is being able to say that 100% of its raw material suppliers are MEXICAN.

Authors

Sonia Cervantes

Sonia Cervantes

Beatriz Adriana Chincoya Velasco

Beatriz Adriana Chincoya Velasco

School

IESDE School of Management

IESDE School of Management

Professor

Gabriela Sánchez Bazán

Gabriela Sánchez Bazán

Innovation

In 2016, Quirmex had the need to invest in machinery in a production line to increase production capacity on the way to meeting the objectives set by management and direction.

This machine requires as one of its raw materials a very specific paper, medical grade paper, whose cellulose is obtained, in general, from the wood of trees originating in Nordic countries. This is because in these countries there is a constant presence of snow and cold temperatures that make the growth of the tree slower and more progressive, forming a particularly resistant type of characteristic fiber. Low temperatures also prevent the proliferation of pests, eliminate the need for fumigation and the use of chemicals, also resulting in greater purity of the material. This cellulose does not receive any type of chemical treatment, with it the fibers are manufactured with the same degree of purity as when extracted from trees. When manufacturing medical grade paper with pure cellulose no optical brighteners are used. The cellulose fibers are bonded using a special glue-based adhesive, which, in addition to maintaining the degree of purity, allows the medical grade paper that is obtained to withstand moisture, an important characteristic when subjected to the wet heat sterilization process.

The Medical Grade sterilization papers are an effective barrier against the penetration of microorganisms and environmental dust, they are permeable to the sterilizing agent while their reduced pore size guarantees safe storage properties. They have resistance to handling both dry and wet and the sterilization method used, do not release material during use and do not damage the material packed in it. They have high mechanical resistance in both dry and wet conditions, and are compatible with steam sterilization processes, ethylene oxide and gamma rays.

To follow up on this requirement, Quirmex worked hand in hand with its main supplier of paper and packaging, so that based on some samples of paper from a foreign manufacturer, the same development could be achieved here in Mexico and be supplied by a 100% Mexican supplier; after various tests and errors and several months of work, it was finally possible to obtain the specialized medical grade paper required for the operation.

For the development of this business model which was carried out from March 2016 to August 2017, several systematic activities were presented, like the ones listed above:

- Import of sample paper so that the supplier could study its principle and operation.

- 50% investment by Quirmex and 50% by the supplier (of the total initial investment) for the purchase of supplies for the performance of the test runs

- Quirmex offers machinery and facilities to perform all the necessary test runs

- Technical advice of the machinery in question so that the supplier could know the principle of paper sealing

- Technical advice from the supplier for handling, storage and expiration of paper

SUPPLIER DEVELOPMENT PROGRAM

Inspiration

The main inspiration for the director of the company was, as mentioned in previous lines, to continue being a company that is only supplied by Mexican suppliers.

All the raw material with which the manufactured products are worked is obtained and marketed in Mexican territory; what it means to support Mexican labor, formal commerce in Mexico, and the development and growth of the country's economy.

The general direction of Quirmex responsible for seeking technology and collaboration with the potential to develop sustainable and innovative products, sought to create an alliance that promoted local development, designing strategies that would allow for an innovative and sustainable product for the environment and that would help to move and to grow the local economy.

Overall impact

By increasing the capacity to manufacture products in Mexico, future generations will have more opportunity to find good jobs; the development of suppliers is an extraordinary opportunity for micro, small and medium enterprises in the country to flourish.

Mexico now has a vast productive force; In Mexico it is possible to manufacture practically everything, so if each Mexican company chooses, when it has the opportunity, a Mexican supplier, in a short time we will have a very solid and extensive market.

The economy of every country is based on what it produces, therefore, when buying products made in Mexico, by Mexican hands, we are encouraging our country to depend on us Mexicans, which brings development and growth.

For this specific case, through the development of this innovation, the supplier's profits increased, as well as the orders of raw material by some direct competitors of Quirmex, this thanks to the dissemination campaign that Quirmex made to inform its commercial partners what they had done, and in a way companies that did not buy them to see this innovation have now taken them as their purchase option.

Business benefit

Some of the advantages that this development brought to the company are:

- Get a custom-made product

- Production processes with less waste

- Response time from the provider very short

- Lower raw material inventories

- Do not depend on the dollar exchange rate for the purchase of raw materials

- Post-sale service in a timely manner, without delays or language barriers

Quirmex helped the development of innovation, design of manufacturing and this ensured the supply of the product, creating operational alliances that have fostered the development of new innovative products, as well as the development of healthy competition with a material within reach of anyone that requires it.

Social and environmental benefit

Some of the benefits that this development brings are:

- By developing national suppliers, we support not only Mexican manufacturers but also Mexican workers.

- We help the Mexican economy to keep growing.

- Buying the Made in Mexico, we support Mexican companies that have clean processes, helping to conserve the environment.

- When you buy what is done in Mexico, you contribute to the payment of better wages to Mexican workers.

- By avoiding buying imported products, we help the factories stay in Mexico and with them the money, infrastructure and jobs.

- The money stays in our country. This helps to reactivate the economy and benefits all Mexicans.

- The supplier can sell the product to whom it is required, it is not patented nor is it exclusive of Quirmex, with this the generation of jobs is fostered and it contributes in a certain way to the growth of the Mexican economy.

Interview

QFB. Obed Vidal Gonzalez, SUPPLIER DEVELOPMENT PROGRAM

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Quirmex S.A. De C.V.

Quirmex S.A. De C.V.

MX

Business Website: http://quirmex.mx/

Year Founded: 2004

Number of Employees: 201 to 500

Quirmex is a 100% Mexican company that originated in the city of Puebla, Quirmex had its beginning as a company dedicated to the maquila of healing products.

Currently, the company has the Quirmex brand for healing materials, gauze, cotton and swabs.