Our Approach

Procurement for JBS USA, excluding livestock, is centralized in North America and Australia through our corporate offices. The Head of Purchasing leads several teams that are each responsible for procuring certain products or services related to Production, Employee and Corporate Services, Energy, Facilities Services, Capital Expenditure and Equipment, and Maintenance, Repair and Operations. This structure allows us to maximize the potential of our supplier partnerships across our business and ensure consistency and uniformity across our diverse supply chain.


Our Procurement Teams

Packaging

To maintain efficient levels of operation, our Packaging Team oversees the procurement of all packaging, as well as the disposal and recycling of all packaging related facility waste and materials. Working with each business unit’s packaging team they help make sure that all corrugated fiberboard, flexible and ridged plastics, labels and pallets are procured according to product packaging specifications. Finally, the team works to reduce waste and recycle the maximum amount of materials by optimizing facility logistics and team member training.


Ingredients

The Ingredient Team oversees the procurement of all ingredients (flavors, seasonings, coating system, sauces, etc.) that go into our consumer products. They partner with each business unit’s Research and Development and Quality Assurance teams, to ensure that all ingredients meet our specifications.


Employee and Corporate Services

The Employee and Corporate Services Team manages procurement of the day-to-day supplies and services needed to provide a comfortable and productive work environment for our team members. Working in conjunction with teams in our production facilities to determine the needs of our facilities and corporate offices, they are responsible for purchasing personal protective equipment, safety equipment and services, medical supplies, uniforms, vending and cafeteria services, small package freight and office supplies, such as copiers, printers and telephones.


Energy

Our Energy Team is responsible for purchasing the electricity and natural gas used in our facilities and works directly with our engineering teams to ensure that equipment such as boilers and ammonia compressors are operating efficiently. In addition, the team collaborates with our engineering teams to track each facility’s energy usage and compare data across business units, enabling us to identify performance leaders and outliers, investigate the potential causes for deviation and develop action plans to improve efficiency.


Facilities Services

Our Facilities Services Team works with our production facilities to make sure that the proper daily necessities for running an effective, clean and safe facility are readily available. In collaboration with our environmental, engineering, food safety and quality assurance teams, they oversee the procurement of chemicals, environmental services, lab supplies and services, pest control, quality assurance services, security, wastewater services and sanitation.


Capital Expenditure and Equipment

Working with plant engineering team members, the Capital Expenditure and Equipment Team administers the procurement of equipment, parts and services. Products and services purchased include lift trucks, maintenance services, construction, vehicles, tires and rental equipment. The team works closely with each business unit to maintain assets from acquisition to their end-of-life disposal. In Australia, the Engineering Group oversees this function.


Maintenance, Repair and Operations

The Maintenance, Repair and Operations Team is responsible for purchasing the repair and maintenance supplies needed to maintain our facilities’ operational equipment. In partnership with the maintenance and engineering teams, the team procures all spare parts and accessories, electrical equipment, lubricants, welding supplies, fasteners, pumps and paint. In Australia, the Engineering Group oversees this function.

Our Vendor Standards

All existing JBS USA vendors that provide products or services that have direct contact with food are required to pass the ISNetworld and Global Food Safety Initiative (GFSI) audits and provide a letter of guarantee, which certifies that the food products are produced safely and are of consistent quality. In addition, we require all of our new vendors that have direct food contact, including those that make our packaging and ingredients, to undergo a rigorous assessment prior to the provision of goods and services.

We evaluate all of our potential vendors based on quality, price, reliability, financial capability, reputation and experience. When assessing new vendors, we give preference to local companies that are cost-competitive and have the capability to handle our requests. Sourcing ingredients and services from within our communities helps further stimulate local economies, and we use local companies or national companies with local offices whenever possible.

We are proud to partner with vendors to ensure the quality, consistency and safety of our products. In the U.S., Puerto Rico and Canada, we have approximately 7,838 vendors and the average length of our partnership is more than nine years. In Mexico, we have 2,347 suppliers and have partnered with those suppliers for more than six years. In Europe, we partnered with more than 5000 vendors for an average of more than 20 years. In Australia, we have 13,340 vendors and have partnered with them for an average of seven years.

“In order for us to meet our sustainability goals and be the best supplier to our customers, it’s imperative our supply chains be sustainable. We expect our suppliers to be good stewards of the environment, use natural resources efficiently and form long-term strategic partnerships that positively impact our brand.”

Brad Speer
Head of Purchasing, JBS USA

We also seek to partner with minority-owned businesses, given they meet our standards. In 2018, our U.S., Puerto Rican and Canadian teams purchased more than $148 million in products and services from vendors that are minority-owned businesses.

We are also in the process of enforcing our new Supplier Code of Business Ethics and Conduct.

Percent Purchasing Volume Spent on Contracts with
Minority-Owned Businesses

*Includes all U.S., Puerto Rican and Canadian facilities