Virutex Ilko and its support plan for micro-enterprises

Since his arrival in Colombia in 1994, Virutex Ilko has been implementing a series of strategies where suppliers become a fundamental part of the value chain and are the transversal axis of the company’s supply process.

(Virutex Ilko, certified as company B).

Since before the quarantine, caused by covid-19, and even more so with the contingency for the import of raw material caused by insufficient containers, The company’s focus has been the development of local suppliers, encouraging sustainable purchases and improving the country’s economy.

Among the productive sectors that have been supported in Colombia, the industry of transformation of recovered and original plastics, textiles and SMEs that have a large participation in the supply strategy of Virutex Ilko stand out.

SUPPORT FOR THE PLASTICS INDUSTRY

The recovery and transformation of post-consumer and post-industrial plastics sector is one of those with a large participation in the supply chain of Virutex Ilko Colombia. Between 2015 and 2016, international purchases of recovered plastic resins corresponded to 15% of the total annual consumption of this raw material, with a purchase volume of 236 tons per year, equivalent to $756 million.

Since then, a work plan has been developed so that the supply of this raw material has a local and national supply approach.

The first year of the strategy (2017), it was possible to increase the national purchase of recovered resins by 26%, going from 770 tons to 968 tons per year, corresponding to $2,216 million.

(Virutex Ilko certifies the use of recycled plastic in its products).

Since then, the national supply achieved a 100% share, achieving that from 2017 to 2021 purchase transactions were carried out for a total amount of $16,715 million to small transformers that are directly linked to associations of recoverers and recyclers, reaching an average annual consumption of 1,200 tons.

SUPPORT FOR THE TEXTILE INDUSTRY

The textile sector also has a considerable impact on Virutex Ilko Colombia’s strategy, since since 2017 it has been working on increasing the national purchase of raw materials such as cotton yarn and non-woven fibers. The negotiations carried out from 2015 to date have totaled $21,192 million, corresponding to 4.2 million tons of cotton yarn.

On the other hand, non-woven fibers imported in 2015 had a 47% annual share, with a purchase amount of $88 million and a volume of 361,632 sheet units; Between 2019 and 2021, the purchase of this raw material was transferred to 100% national supply, thus achieving total purchases of $2,887 million from 2015 to date, represented by 3.4 million sheets.

SUPPORT FOR SMEs

The development of SMEs has also been fundamental in the value chain of Virutex Ilko, as small national suppliers have crossed the line from purely commercial relationships to maintaining strategic relationships with the Company.

This is the case of the supplier of plastic filaments, which began relations with the Company in 2016. To date, it has had a growth in sales of 61% accumulated, only in the operation with Virutex Ilko, adding total sales of 5,265 tons for a value of $20,211 million.

In the cargo transport sector, there is the case of a small company that began in 2016 to provide the service to Virutex Ilko with a single vehicle; To date, it adds sales of exclusive services to the Company for a total value of $10,100 million.

“These cases are a clear example of the good results obtained from the development of supply with national SMEs. At Virutex Ilko Colombia, our philosophy is to grow hand in hand with the supplier, in such a way that it allows them to gain development, commercial skills, business assurance, loyalty, support and considerable and sustainable economic growth”, indicates Antonio Caicedo, General Manager of Virutex Ilko Colombia.