Materials and Service Suppliers Handbook
Guarani considers transparency in the relationship with clients and suppliers an essential attitude for a company its size and responsibility. On the other hand, we expect suppliers to develop and maintain a work environment where the Quality principles be observed, so that we may reach the highest satisfaction level with our clients.

In order to obtain a final product that meets the quality, competitiveness and punctuality standards demanded by the market, we need to:
  • Attract and keep the best suppliers in the market;
  • Negotiate with a selected number of suppliers, who apply the Quality principles, to reach an international market and leadership reference standard;
  • Develop long-term business relationships with suppliers who commit themselves to continuously improving the quality of feedstock, equipment and input we purchase.
Find out about our Suppliers Relationship Code (SRC):
Goals:

1 - Guarantee quality in supply, observing the best market practices;
2 - Qualify suppliers to meet the demands required by Açúcar Guarani;
3 - Select and maintain the best companies in the market in our roll of suppliers.

Definitions:
Group of materials: Materials are grouped according to type. Ex. Group of screws, group of tools, etc.;
Buyer: a member of Açúcar Guarani staff responsible for all stages of the material supply process;
Qualified supplier: suppliers qualified to provide certain groups of materials;
Assessment query: they are queries used by Açúcar Guarani to measure suppliers’ performance (service, competitiveness, punctuality, noncompliances, and quality);
Material Category: Açúcar Guarani adopts the strategy of categorizing materials with criteria according to the importance, divided in four large groups referred to as “A, B, C, D”;
Suppliers Rank: score groups reached by Supplier per group of materials.
The Sales representative may:
1 - Receive from Buyer a request for price comparison by email;
2 - Provide the quotation proposal requested by Buyer by email;
3 - Receive from Buyer by email notice to carry out quotation through the Guarani homepage;
4 - Log on to the Guarani homepage and insert quotation;
5 - Follow up and monitor its rank through the Guarani homepage
The Sales representative shall:
1 - Verify the amounts chosen by Buyer observing the purchase unit;
2 - Observe the date and time requested by Buyer to return the supply proposal;
3 - Before sending a supply proposal, analyze and inform all data accurately, such as:
  • Unit price;
  • Offered brand;
  • Purchase unit;
  • Tax % on manufactured products (IPI);
  • State VAT % (ICMS);
  • Delivery term;
  • Payment term;
  • Place of delivery (CIF or FOB);
  • Note blank.
Should the Sales Representative not provide the quotation on the date requested by the Buyer, he or she shall lose points in the service query;
Should the proposal offered by the Sales Representative to supplier not be the winner, he or she shall lose points in the competitiveness query;
The Sales Representative is in charge of complying with the delivery term of the materials agreed between the parties.
Should the delivery term not be observed, he or she shall lose points in the punctuality query.
Should information on price, brand, IPI %, ICMS %, delivery term, payment amount and term, and place of delivery inserted by the Sales Representative in the quotation request be inaccurate, he or she shall win points in the “noncompliance” query;
Should the materials delivered by the Sales Representative not meet the Açúcar Guarani quality requirements, he or she shall lose points in the quality query.
Requirements to become a qualified Guarani supplier:
  • Each suppliers shall be granted 100 points initially in each group of materials he or she may be qualified in;
  • There shall be different weight in each query and category of materials;
  • Noncompliance with assessment queries shall incur the loss of points in the group of materials of the event;
  • Recovery of points lost shall take place 12 months after the date of the event;
  • The qualification of the authorized supplier shall comply with the Supplier’s rank.
Suppliers with the best performance of each group shall be AWARDED with partnership agreements and privileges on Spot Quotations.
Suppliers Assessment Queries
Assessment queries Events
SERVICE Quotation replies
COMPETITIVENESS Bids won
PUNCTUALITY Delivered on the term agreed
NONCOMPLIANCES Nonconformities between Order, Invoice and Delivery
QUALITY Product quality
Categories of materials
(Each category shall have different weight for each assessment query)

CATEGORIES
A
B
C
D

“A” Category – Query weight

Assessment queries Weight
SERVICE 0
COMPETITIVENESS 0
PUNCTUALITY 30
NONCOMPLIANCE 10
QUALITY 60
Note: Weight of queries may be changed pursuant to the Guarani demand.

“B” Category– Query weight

Assessment queries weight
SERVICE 0
COMPETITIVENESS 0
PUNCTUALITY 30
NONCOMPLIANCE 10
QUALITY 60

“C” Category – Query weight

Assessment queries weight
SERVICE 2
COMPETITIVENESS 5
PUNCTUALITY 25
NONCOMPLIANCE 20
QUALITY 48

“D” Category – Query weight

Assessment queries weight
SERVICE 5
COMPETITIVENESS 10
PUNCTUALITY 20
NONCOMPLIANCE 30
QUALITY 35
Calculation Method to Rank Suppliers
PTMA Previous month’s total score
PPME Points lost on the previous thirteenth month
Service:
CS Number of quotations requested by Buyer
CR Number of quotations replied by Sales Representative
PA Service query weight
Competitiveness:
C Number of items Buyer requested quotation
VI Number of items sold by Sales Representative
PC Competitiveness query weight
Punctuality:
EP Total number of deliveries in a month
ENP Number of unpunctual deliveries (beforeor after arranged term)
PP Punctuality query weight
Noncompliance:
ENC Noncompliance query weight
NC Total number of deliveries in a month
PNC Number of noncompliant deliveries
Quality:
EQ Number of deliveries made during the month
ENQ Number of noncompliant deliveries due to quality
PQ Quality query weight
PF Final score
Calculation formula for ranking suppliers
A - The Services, Competitiveness, Punctuality and Noncompliances queries are intelligent and appropriate through our E.R.P. (Information System);
B - The Quality query is subjective and inserted in our E.R.P. upon receipt or when using materials.
Suppliers Rank
FULL 85 to 100
SPECIAL 70 to 84
RESTRICTION 55 to 69
SUSPENDED 40 to 54
FAILED 0 to 39
Upon reaching RESTRICT or SUSPENDED qualification, the Supplier shall be notified by email.
FAQ:
1 - How do I know:
  • In which groups I have been qualified in?
  • In which category I fit in?
  • Which materials requested by Açúcar Guarani I have to turn in?
2 - How may I:
  • Monitor my score?
  • Identify events causing loss of points?
Answer:
Log on to the Guarani homepage: www.acucarguarani.com.br item Feedstock and input suppliers, and with your pin number browse the item Purchases Management, go to sub-item S.R.F. (System of Relations with Suppliers) and research the information required to improve your performance to become a qualified Guarani supplier.