Frasle Mobility's New Positioning and Randoncorp Investments
Due Diligence
RT-IG-440a.1
The new Randoncorp suppliers undergo a third-
party integrity analysis process, with the purpose of
identifying facts or signs of non-compliance in topics
such as ethics, anti-corruption, environment, labor
rights, financial, tax and criminal aspects, privacy
and reputation.
The management and operation of the due diligence
portal is carried out by an independent and specialized
company. The Risk and Compliance Management
department is responsible for conducting the due
diligence and notifying the Purchasing department
about the level of risk identified in each supplier.
In 2022, 529 suppliers were
evaluated. Out of these,
78% were classified as low
risk, with no records of
non-compliance, 20% were
approved with reservations,
classified as moderate
or high risk (due to the
presence of lawsuits still
pending trial), and 2%
were classified as critical
risk, considered to have
failed the evaluation.
Global Supplier Performance Index (IDGF)
Every month, we evaluate the quality and performance
of our suppliers, both in the current month and in the last
quarter. By doing so, we can ascertain their momentary
performance and identify trends, making it possible to
draw up improvement plans and decide whether or not
to keep the supplier in our chain.
The IDGF is divided into four blocks: Supplier
Management Index (IGF), Commercial Performance
Index (IDC), Logistics Performance Index (IDL) and
Supply Performance Index (IDF). The results of these
evaluations are compiled into management reports,
which include, but are not limited to, the score obtained
during the supplier process audit, the delivery credibility
in the period, and the PPM index (defective parts per
million parts supplied).
Altogether, these indicators feed the score of the Global
Supplier Performance Index (IDGF), which qualifies the
supplier in four classes, according to its presented
performance:
> suppliers with the best GSPI benefit from their
performance, giving priority to new business with the
Company.
> suppliers that may participate in new purchasing
processes but are not a priority.
> low-performing suppliers, who must establish actions
to correct the identified problems and level up.
> suppliers who were unable to demonstrate improvement
in their processes throughout the supply period and,
therefore, have their relationship suspended.
When significant non-conformities are identified, the
supplier must draw up an action plan to improve its
performance. In case of problems in implementing the
action plan, the Supplier Development area conducts IQ
meetings (quality and performance follow-up meetings),
which involve the supplier's team and our quality and
engineering teams and other areas, which follow up and
support the solution of the problem identified.
If, even so, the non-conformity is not resolved, as a last
resort, we hold Super IQ meetings, which involve our
board and the supplier's board, where conditions for
supply permanence are established. Those that do not
meet the stipulated deadlines and targets have their
contracts suspended.
Supplier Engagement
GRI 2-29
Every year we hold the Supplier Meeting, an event
that brings together our supply chain to present our
performance scenario, strategy, guidelines, and
perspectives for each business vertical. In 2022 the
event took place in Caxias do Sul (RS) and brought
together 100 partner companies.
During the program, participants had access to
our public ESG commitments and key strategies in
innovation, industrial and product technologies, market
and business perspectives.
Aimed at encouraging and promoting best sustainability
practices, during the meeting we awarded the Supplier
Awards, which recognizes suppliers that have developed
projects in three categories: Competitiveness,
Innovation and Technology, and ESG. In the 2022
edition, 45 projects were registered.
PROSPERITY FOR ALL
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