SUPPLY CHAIN

OF

Ah SODIMAC
- The logistics chain is made up of five basic elements on which any strategy of this
type is based:

-Customer service
-Inventories
-Supplies
-Transportation and distribution
-Storage

Sodimac Chile works with around 1,300 suppliers of all sizes. As part of its
responsible sourcing policy, each year company executives select the best products
in Chile and various markets around the world, at the best price and with the
support of reliable manufacturers, which are subjected to strict quality controls.
Local suppliers supply 79% of Sodimac's purchases in Chile. During 2016, imports
reached US$453 million (FOB) from Asia, South America, North America and
Europe, among other markets.

• In addition to price, the company's sourcing strategy considers supplier continuity,

continuous improvement, product quality and safety. Good labor practices, an adequate
working environment, the use of safety elements and respect for national standards and
international labor agreements are also essential.
• Sodimac currently operates 72 stores, 15 distribution centers and warehouses throughout
Chile, with a total of 450 thousand m² of storage (with owned and leased warehouses)
and around 25 thousand SKUs in high season.
• For Mariano Imberga, Supply Chain Manager at Sodimac Chile, one of the company's main
objectives is to get the product to its destination on time, in the right form and at the
lowest possible cost.
TCS Commercial Transparency Sodimac
• Sodimac's relationship with its supply chain is governed by the Sodimac Commercial
Transparency (TCS) policy, a formal self-regulatory regulatory framework, focused on the
commercial relationship and on the conduct and standards of responsible operation and
sustainability with suppliers. This establishes an open and transparent relationship with
the counterpart, allowing for joint work based on clear rules.
• Sodimac's relationship with its supply chain is governed by a formal self-regulatory policy
called Transparencia Comercial Sodimac (TCS), which focuses on both the commercial
relationship and the conduct and standards of responsible operation and sustainability. This
allows us to work together on clear rules. Sodimac's Comptroller's Office is responsible for
ensuring compliance with the TCS.

SUPPLIERS

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Working with Sedex
In 2015, Sodimac intensified its joint work with Sedex, a global non-profit organization that
aims to drive improvements in business practices in aspects related to ethics and
responsibility in retail chains.
supply.
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• This platform allows us to share ethical compliance and labor standards information with our
 suppliers, which translates into a responsible sourcing program to reduce risks, protect
corporate reputation and track practices and non-conformities in the supply chain.
• Thousands of companies use Sedex to manage their labour rights activities labor rightshealth
and safety, environment and business ethics.

• In this context, during the period, specific suppliers were asked to join this initiative, and 216
international and domestic suppliers registered. In addition, the company intensified its value
chain monitoring work, with 105 social audits at its facilities to ensure compliance with
worker health and safety, human rights, environmental and labor standards.