How Tech Drives Responsible Sourcing at Vale SA
Marco Braga, Chief Procurement Officer and Global Inbound Logistics Director at Vale SA
World leading mining company Vale SA has been pioneering cleaner minerals for decades, and one of its key logistics executives has spelled out the company’s ambitious sustainability vision for the future.
As one of the biggest producers of the critical minerals including nickel, copper, cobalt and platinum group metals, Vale SA prioritises responsible sourcing to drive economic growth whilst accelerating the global energy transition.
The global company has a workforce of more than 125,000, one of whom is Marco Braga, Chief Procurement Officer and Global Inbound Logistics Director.
During a keynote for BizClik’s Procurement & Supply Chain LIVE New York event, Braga discussed how the company is leveraging procurement transformation to create and share value.
Focusing on the company’s ambitious vision for the future, he outlined the critical role of people, technology, and sustainability in driving this transformation.
Transforming operations 'takes courage'
Braga also stresses that rethinking traditional approaches “requires courage”.
“A dream that everyone dreams together becomes true,” he says. It is important to engage the entire team in the transformation journey.”
He added: “It’s not about merely digitising existing processes, but about taking a 360-degree view to identify opportunities for real improvement. Such a holistic approach is essential for achieving lasting change and unlocking the full potential of procurement transformation.”
Vale’s new vision for procurement
“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.
“As we near our centenary, we aim to be recognised as setting the benchmark for 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. We want to be part of the best company in the world and support this company to achieve its goals.”
This integrated approach, he says, ties procurement directly to VALE’s ambitions in safety, cost management, and sustainability.
People at the centre of Vale SA transformation
Braga also stresses the importance of people in the transformation journey.
“Procurement is not just about creating efficiency, but also about creating an environment where employees feel valued and are empowered to grow,” he says. “We put people at the centre of everything we do,” he added, underscoring Vale’s focus on training, recognising, and awarding top-performing suppliers and contractors.
“A standout achievement is 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%.
“This shift is part of a deliberate effort to diversify the workforce and embrace different perspectives to foster innovation.”
Technology as an enabler at Vale SA
Braga also explained how the company is embracing automation and AI to drive procurement transformation.
“We have introduced a robot named ‘Jane’, which automates a range of procurement tasks, from supplier selection to purchase order management.
“Jane is already yielding significant improvements in efficiency and decision-making, and is doing the work faster and delivering better results than humans.”
This, he says, frees up Vale’s employees to focus on higher-value tasks such as strategic planning and relationship-building.
“The aim of this transition is to move people away from administrative duties and towards more creative and impactful roles within the company,” he explains.
Braga also spoke about Vale’s approach to procurement process redesign, explaining 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”.
He added: “We want to design a process where traditional buyers are no longer needed, and are looking to a future where technology handles the operational aspects of procurement autonomously.”
Embedding sustainability and community value
He also outlined Vale’s commitment to sustainability and community engagement, describing how ut is integrating ESG principles into its procurement strategy.
“Last year, 98% of our suppliers voluntarily agreed to report their emissions, demonstrating their shared commitment to reducing CO2 output,” he said.
Plus, he added, “we introduced an initiative called the Community Value Index, which incentivises suppliers to contribute positively to the communities where we operate.
He continued: “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.”
_________________________
Check out the latest issue of Mining Digital and sign up to our global conference series, Manufacturing LIVE 2024. Mining Digital is a BizClik brand.
- Mining Automation Giant ABB has Sustainability in SightsSustainability
- Teck CEO Price Navigates Mining's Sustainability ChallengeSustainability
- How US Dodd-Frank Act Shapes Responsible Sourcing in MiningSupply Chain & Operations
- Caterpillar CEO Umpleby prizes sustainability highlyDigital Mining