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Procurement in Brazil
Manufacturing in Brazil is never easy; nothing you have accomplished in the America and Europe prepares you to deal with the differences in language, culture and business practices in Brazil. American and European companies who think they can compete in Brazil using their model will not be successful; Companies who think and act like Brazilian companies have a competitive advantage.
Buyers accustomed to high quality, competitive pricing and trouble-free delivery from their countries suppliers, become frustrated when all three will not come together in Brazil without a lot of hard work. Demanding the lowest price often results in compromises on quality; holding a supplier to stringent quality standards will increase costs and often delays delivery beyond promised shipping dates; if you need delivery quickly – particularly on a new project – expect high price and poor quality.
The capabilities of Brazilian manufacturers run the gamut from poor to outstanding. Outstanding companies, typically located in the major manufacturing areas are indistinguishable from their developed countries counterparts, and seldom offer “best” pricing.
To overcome these challenges, AKHI employs a unique strategy of identifying, pre-qualifying, and continuously developing Brazilian manufacturing companies, oftentimes in inland cities, as partners for our clients. These extensively researched and thoroughly audited Brazilian companies – what we call Strategic Manufacturing Assets – have solid capabilities in one or more manufacturing disciplines, and a strong commitment to long-term, mutually beneficial personal and business relationships with their partner.
AKHI works only with “good” Brazilian manufacturers, implementing best manufacturing practices and continuous quality improvement to help turn them into “great” suppliers capable of meeting international customer demands while providing globally competitive pricing.
Interaction between the International and Brazilian companies, carefully guided and nurtured by our project managers, are based on relationships rather than transactions and elevate the typically adversarial buyer – seller relationship into one of mutual respect, shared vision and demonstrable growth opportunities for both parties.
Description of steps supported by AKHI:
1. Procurement of Brazilian manufacturers;
2. Product quotation & Logistic design;
3. Samples request;
4. Credit evaluation report;
5. Manufacturer visit for desired suppliers for first personal meeting;
6. Price and payment conditions negotiation;
7. Follow up of production without visit;
8. Visit to manufacturer for product and shipment inspection;
9. Trading company for export management.
Contact AKHI to develop a customized buying department based in Brazil.
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