Interview with Cristina Menéndez, General Director of CECOFERSA

Cristina Menéndez is an exceptional woman. She speaks Chinese, German, English, and Portuguese, in addition to Spanish. I have never met anyone with such a repertoire of languages ​​and academic qualifications: in audiovisual communication, film production, a Master’s degree in Purchasing Management from the Polytechnic University of Catalonia; an MBA from IE Business School; various finance courses at IESE Business School; and a Master’s degree in Business Intelligence and Big Data from the School of Industrial Organization. She specializes in managing large teams and resolving uncertainty in companies through algorithmic analysis and calculation systems. She heads the Purchasing and Professional Services Agency (CECOFERSA), founded in 1992.

After these 26 years, CECOFERSA is currently the leading Hardware and Industrial Supply group in Spain and Portugal, it has 130 associated companies, of which 30 are in Portugal.

Together they represent more than 250 points of sale, with more than 3,000 employees (of which 2,300 are salespeople), marketing more than 200,000 references and representing some 250,000 m2 of commercial and logistics space, with a global turnover of 530 million euros.

What activities does CECOFERSA carry out?

CECOFERSA meets the needs of its member companies in purchasing, sales, technology, logistics, financing, and information, supported by a team of qualified professionals. We operate according to a comprehensive 360º service plan for our members. CECOFERSA’s values ​​are based on transparency, trust, close relationships, and service. In this era of constant change, we believe our organization should focus on services related to financing, logistics, and business intelligence.

What services does it provide to small business owners?

We help businesses grow. We negotiate economies of scale and distribute all rebates to our partners. We support them with in-store signage, customized promotions, monographs, handrails, industrial technical catalogs, brochures, and more. One of our most requested services is store restructuring. We conduct studies, create 3D floor plans, and design merchandise layouts based on their stock levels.

We can change or renew your image. We offer financing services through DELCREDIT, a centralized payment service guaranteed by our own bank, where the supplier receives payment in 30 days and the partner decides when to pay. We advise you on current regulations, always keeping abreast of changes and how to implement them. Negotiating services that we all use creates synergies that we must leverage.

How do you assess the current economic situation?

Currently, the economic situation, new consumer trends, technological advancements, competition, and the entry of new international competitors into our market are driving companies in the country to seek new opportunities to maintain their position and compete with their products and services. Innovation, growth, diversification, and renewal are the objectives of our members.

What’s not about the numbers is just talk. Let’s talk about revenue. Buying groups specializing in construction materials, hardware, DIY, and industrial supplies generated over €11.7 billion in revenue in 2017. Hardware and DIY grew by 5% last year, while industrial supplies grew by 7%. We’re in a sector where over 60% of businesses are affiliated with central offices, cooperatives, or retail chains. It’s a mature market with very tight margins, so survival depends on value propositions that align with new consumer habits.

Why do they say they are leaders?

For 26 years, CECOFERSA has led the sector through innovation. We were the first to create a digital catalog. We offered the first hardware training courses; we had the first website in the sector, and our first online store received numerous awards in Europe. We organized the first reverse trade fair at IFEMA, where the supplier was the visitor. Instead of exhibiting products, our members had their own dedicated space, and the supplier visited them to offer their deals and new products—to sell to them. We were the first to set our sights on Europe, joining Euro Craft, the largest group in our sector in the EU, and E/D/E (the German giant with over €6 billion in revenue) as shareholders to jointly develop projects in Spain and Portugal on an international level.

Source: Executive Sector Magazine