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„Impact in our logistics“

The Chilean DIY industry has been impacted by the earthquake early March. Following an interview with Sandro Solari, CEO of the DIY retailer Sodimac
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What was and is the impact of the earthquake on the Sodimac organization? Sandro Solari: Considering it was a 8.8 Richter earthquake, the impact in Sodimac’s infrastructure was very low. Two days after the earthquake, 70 per cent of our stores in the damaged central and southern regions of Chile were open and after one week only two stores in the most devastated areas remained closed. The biggest impact was in our logistics, due to damage in the country’s highway infrastructure, specially in the road that joins Santiago with the southern regions. This has slowed all vehicle transit to and from the south. For example, if before a truck could make the trip within the day, now it can take twice or three times the normal time. The earthquake also affected the production processes, infrastructure and stocks of important local vendors, but most of them have normalized their operations. How does Sodimac handle the situation? We contacted important international vendors and DIY companies to search for new suppliers to complement local producers. We need to increase our stocks, not only for the emergency repairs required in the initial weeks after the earthquake, but to respond to all the requirements of the rebuilding process that will be much more demanding and will last for at least three or four years. I would like to thank international DIY companies like Bunnings, Komeri, Hornbach and several others that have been extremely supportive and have offered us their cooperation and preferential access to their own supply chains. What will be the consequences for the whole DIY industry, for builders’ merchants, hardware stores and DIY stores in Chile? In the next few years, during the rebuilding period, we’ll see a strong increase in the demand for products like iron and cement. The Government is still quantifying the full extent of the damages and that information will be very important for us to make the best supply decisions to reduce product costs and waiting times. What role will the DIY store chains play in the rebuilding of your country? We’ll play a very important and active role not only in assuring the supply required for the rebuilding process, but also in reducing price speculation in Chile. Sodimac has a permanent commitment with low prices and after the earthquake that commitment is stronger than ever. Download:
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