P&SC LIVE New York: The Value in Procurement Transformation

Procurement & Supply Chain LIVE New York featured Marco Braga, Chief Procurement Officer and Global Inbound Logistics Director at VALE. During his keynote, Marco delivered a compelling presentation on how VALE is leveraging procurement transformation to create and share value. Focusing on the company’s ambitious vision for the future, Marco outlined the critical role of people, technology, and sustainability in driving this transformation.

A new vision for procurement

Opening with an introduction to VALE, Marco highlights its significance as a global mining company producing over 300 million tonnes of iron ore annually, and its achievements in nickel and copper production. He sets the stage by discussing VALE’s ambitions for the future, as it approaches its centenary, aiming to be recognised as a benchmark in sustainable mining and value creation.

Central to this vision is procurement’s role in supporting the company’s broader objectives. “We don’t want to build the best procurement in the world,” Marco emphasises. “We want to be part of the best company in the world and support this company to achieve its goals.” This integrated approach ties procurement directly to VALE’s ambitions in safety, cost management, and sustainability.

People at the centre of transformation

Throughout his presentation, Marco repeatedly emphasises the importance of people in the transformation journey. He explains that procurement is not just about creating efficiency, but also about creating an environment where employees feel valued and are empowered to grow. “We put people at the centre of everything we do,” Marco states, underscoring VALE’s focus on training, recognising, and awarding top-performing suppliers and contractors.

One standout achievement he notes was the increase in gender diversity within the procurement team. Over the past six to seven years, the proportion of women in the department has grown from under 20% to over 50%. Marco credited this shift to a deliberate effort to diversify the workforce and embrace different perspectives to foster innovation.

Technology as an enabler

Marco also delves into how VALE is embracing automation and AI to drive procurement transformation during his keynote. He describes the introduction of a robot named ‘Alice’, which automates a range of procurement tasks from supplier selection to purchase order management. According to Marco, Alice’s work is already yielding significant improvements in efficiency and decision-making.

“Alice is doing the work faster and delivering better results than humans,” Marco reveals, highlighting how automation is freeing up VALE’s employees to focus on higher-value tasks such as strategic planning and relationship-building. This transition aims to move people away from administrative duties and towards more creative and impactful roles within the company.

Marco also spoke about VALE’s approach to procurement process redesign. He explained that the goal is not just incremental improvement but reimagining processes from the ground up to align with the company’s vision of the future. “We want to design a process where traditional buyers are no longer needed,” he says, pointing to a future where technology handles the operational aspects of procurement autonomously.

Embedding sustainability and community value

A key element of Marco’s presentation was VALE’s commitment to sustainability and community engagement. He describes how the company is integrating environmental, social, and governance (ESG) principles into its procurement strategy. Last year, 98% of VLE’s suppliers voluntarily agreed to report their emissions, demonstrating their shared commitment to reducing CO2 output.

Additionally, VALE has introduced an initiative called the Community Value Index (CVI), which incentivises suppliers to contribute positively to the communities where VALE operates. Under this programme, suppliers are evaluated based on their social investments, such as supporting education, sports, and vocational training. This approach not only strengthens the company’s supply chain but also creates a lasting impact in the regions it touches.

The courage to transform

In a concluding exchange with host Neil Perry, Marco reflects on the challenges and rewards of procurement transformation. He describes the process as one that requires courage, particularly when it involves rethinking traditional approaches. “A dream that everyone dreams together becomes true,” he says, emphasising the importance of engaging the entire team in the transformation journey.

Marco also cautions against merely digitising existing processes, advising organisations to take a 360-degree view to identify opportunities for real improvement. This holistic approach, he suggests, is essential for achieving lasting change and unlocking the full potential of procurement transformation.

As the session wrapped up, Neil commended Marco for offering an inspiring glimpse into VALE’s journey. The keynote showcases the strategic and cultural shifts needed to transform procurement into a key driver of business success and sustainability.

In sum, Marco’s presentation demonstrates the multifaceted nature of procurement transformation. It’s not just about cost savings but about creating an environment where technology, people, and sustainability converge to deliver lasting value.

Essential diary dates for 2024 and 2025…

Discover the essential diary dates for Procurement Magazine and Supply Chain Digital, as well as its sister publications – Manufacturing Digital and Sustainability Magazine.

2024 diary dates:

• Manufacturing & Mobility LIVE | 6 November 

2025 diary dates: 

• Procurement & Supply Chain LIVE Singapore | 11 February 
• Procurement & Supply Chain LIVE: Scope 3 | 5-6 March
• Sustainability LIVE: Net Zero | 5-6 March  
• Procurement & Supply Chain LIVE Dubai | 29 April 
• Procurement & Supply Chain LIVE Chicago | 4-5 June 
• Manufacturing & Mobility LIVE Chicago | 4-5 June 
• Procurement & Supply Chain LIVE London | 23-24 September 
• Procurement & Supply Chain Awards | 24 September 

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