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Supplier development and recognition

Cemig, in order to encourage its suppliers to improve their products and processes, created the Development Program and Supplier Recognition, which was established during the First Meeting of Cemig Suppliers in 2009. Executives of the leading suppliers of Cemig, representatives of commercial organizations, managers and Cemig’s employees attended the meeting.

During the event, it was announced Cemig's Supply Policy with the Manual for Relationship with Suppliers and the criteria for Recognition and involvement in the Quality Assurance Program.

In addition, as a recognition, since 2010, Cemig rewards its suppliers. The material suppliers with the best performance in their categories, according to the Supplier Performance Index, are awarded and are eligible those with performance equal to or greater than 75%. As for the service providers, they receive the Cemig Suppliers Award is necessary to obtain the minimum performance of 80% as measured by the indicator - Contracted Services Quality Index or a similar indicator stipulated by the management area of the agreement.
In the award, it is also given the Cemig Assured Material Supply Certificate. In order to do it, the material supplier must meet all criteria such as Excellence Performance above 80%; be regularized with registration status; be approved by the Industrial Technical Assessment; have been inspected and delivered to Cemig, at least six batches of materials; nonoccurrence of any rejection of material or critical exceptions in the material approving; nonoccurrence of triggers in guarantee scheme; nonoccurrence of any claims of the user areas of Cemig relating to performance of the material, even after the guarantee period and have no pending technical or commercial issues regarding Purchase Orders or Supply Agreements in force with Cemig.
Cemig Assured Material Supply Certificate which are valid for one year) exempts those awarded from the obligation to have their products inspected by Cemig, as a prerequisite for delivery and billing.
Advantageously, this certificate gives to the supplier the exemption of Cemig inspections as a prerequisite for delivery and billing of material, as well as cost savings in the production process (for example, not being necessary to repeat tests in the presence of Company's inspector). For Cemig, the certificate provides greater flexibility in the supply of material, as well as reducing operating costs.
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