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Innovative supplier selection and onboarding metrics to support local economic growth 

Vale has developed its Partilhar program as a way to enhance the positive impacts from the value chain on local communities. This initiative has created innovative metrics and methodologies to recognize and reward suppliers that contribute most to social development in each region. 

Partilhar invites suppliers to engage with and enhance their connection with the communities where they operate through local hiring, local procurement, paying fair wages, and social investments in these communities. These metrics are being integrated into Vale’s supplier screening process, enhancing supplier competitiveness through these levers and a commitment to local development. 

Partilhar has developed a metric called the Community Value Index (CVI), which identifies and evaluates suppliers’ social and economic contributions. The method was built by a multidisciplinary team using objective and transparent criteria that provide balance and allow bidders to demonstrate competitive differentiators regardless of their size or origin.  

The index is gradually being incorporated into Vale’s supplier screening process as an additional parameter for evaluation and decision-making, alongside technical and commercial aspects. This will transform our relationships within the supply chain and prioritize businesses that have a more significant impact on the communities where we operate. 

Photographer: Vale's Archive

Collaborating with our supply chain to drive social and economic development  

  • Fostering job creation in the communities where we operate;  

  • Promoting local procurement to create new business opportunities; 

  • Supporting income growth by increasing wages; 

  • Supporting voluntary social investment. 

The Community Value Index (CVI) is calculated based on:  

  • Local hiring 

  • Wage expenditure  

  • Local spending  

  • Social investment  

Current approach

Technical proposal evaluation + Commercial assessment = Award 

New approach 

Technical proposal evaluation + Commercial assessment + CVI score = Award  
Through this methodology, Vale recognizes and prioritizes suppliers that make the most significant contributions to the social advancement of their communities.

 

For more information about our Partilhar program,click here