Ewerton da Costa Guimarães, Head of Purchasing and Contracting Policies for Brazil at Gas Natural Fenosa/CEG, in Rio de Janeiro, believes that the purchasing department should not be reactive. Quite the opposite. It must work proactively, always seeking process improvements and innovations.
“We are currently experiencing a time of crisis and an unfavorable market is forcing changes in the way the company is managed and acts,” says the executive when justifying the new supplier qualification and approval model that he is helping to implement at the Rio de Janeiro gas company. The novelty is that this model introduces new criteria in the company/supplier relationship, such as the anti-corruption item.
In Ewerton Guimarães’ opinion, “within the modern vision”, the Purchasing professional can collaborate in any area of the company. “We do have to have this proactive profile, to bring efficiencies, especially at this time. Those who were not doing this before will have to do so from now on”.
Below are the main excerpts from the interview given by Ewerton da Costa Guimarães.
CostDrivers – What is changing in the company/supplier relationship?
Ewerton da Costa Guimarães – We now have to seek operational efficiencies not only in Purchasing. We professionals have the privilege of having a vision of the company’s entire business, where everything goes through the Purchasing sector. Therefore, a qualified, well-prepared professional can do a great job not only for the Purchasing area, but for the company as a whole, including in the area of labor liabilities, which theoretically falls under the legal area, but is also related to Purchasing.
CostDrivers – What does the new Gas Natural Fenosa/CEG supplier qualification model provide for?
Ewerton da Costa Guimarães – We are introducing a new supplier qualification and approval model, a performance assessment model including new criteria, such as anti-corruption and health and safety criteria. We have a very strong commitment to this area of health and safety and we are being more demanding with labor obligations. The model being implemented provides for an extensive matrix of service and product categories, with 60 items that must be answered by the supplier, including the presentation of documents, in addition to visits that we can make to verify this information. At this stage, we go to our supplier and during this visit we make a thorough assessment of the administrative and financial aspects of their company, the quality of the service and environmental issues.
CostDrivers – And how are suppliers reacting to this?
Ewerton da Costa Guimarães – There are suppliers who are aware and others who are not so aware. We have tried to talk to them to show them the benefits of this new procedure. Many understand and are adopting it. Few are those who do not. When we are unable to overcome their resistance, we evaluate the strategic position of each of them for our company and only then decide what to do.
CostDrivers – What kind of argument do you use to break this resistance?
Ewerton da Costa Guimarães – It is not our intention to block, cut or eliminate this or that company from our list of suppliers. Our qualification and approval model is actually a free diagnosis, an opportunity that we are offering, showing where the supplier needs to improve, perfect its production process and thus better serve the market in general and not just Gas Natural Fenosa/CEG.
Ewerton da Costa Guimarães
Head of Contracts, Suppliers and Procurement Governance Brazil
