Relationship with Suppliers

GRI 102-9, 102-10

In 2018 we made purchases from approximately 5,377 suppliers through 52,296 purchase orders. The major items were from network services providers and suppliers of technology and equipment. Most of the companies we use are located in the Southeastern Region. Strategic planning is supported by a market intelligence area, and purchases are affected by the Shared Solutions Center (CSC), which negotiates, purchases, contracts, assesses and develops suppliers. The negotiations carried out by Algar Telecom are based on the application of the Total Cost of Ownership (TCO) methodology, which guarantees more transparency and a more assertive management of the contracts signed.

We have a Procurement and Service Contracting Policy, and other relevant policies such as Relationship with Public Bodies and Gifts. We have a procurement website, where current and potential partners can read our Code of Conduct for Suppliers, our policies for relations with the Company, our Guide for Registration of New Suppliers and our User Manual.

Before and after being engaged, suppliers are subjected to legal, tax, economic, financial and technical assessment. We also analyze matters related to human rights, the environment (environmental compliance), food safety, occupational health and safety and social responsibility. Our contract provides clauses related to the evaluated items and the performance of suppliers on the basis of indicators, so as to identify shortcomings which might jeopardize the quality of our services.