Energy that mobilizes

Establishing partnerships

From sugarcane producers to businessmen who resell fuel, our partners play a key role in the development of the business. We invest in initiatives intended to guarantee the sustainability of our relationship with our partners throughout all links of the production chain, which involves extending best practices and sharing our values.

Sugarcane producers

Nearly half of the sugarcane volume sent for grinding is originated by third-party production. To improve the relationship with these producers, we continuously train a team of people through programs such as ELO, which aims to engage sugarcane suppliers in the progressive adoption of measures to promote economic sustainability, environmental responsibility, and respect for human and labor rights.

To achieve a joint and continuous sustainable development, the initiative identifies and helps producers to establish action plans in the continuous improvement process. The plans are developed based on individual assessments associated with 34 environmental, social and economic aspects.|G4-DMA Environmental Assessment of Suppliers, G4-DMA Supplier Assessment for Labor Practices, G4-DMA Supplier Assessment for Impacts on Society, G4-DMA Supplier Assessment for Human Rights |

The proposal set out by ELO is guided by: a relationship based on dialogue, transparency, and mutual trust; access to information, knowledge, and tools; identification of opportunities for improvement and customized solutions; and continuous technical assistance.

Currently, there are more than 2,000 participants, which accounts for 86% of our partners. This reinforces the fact that producers are increasingly more engaged with sustainability.

New in the 2016/2017 harvest was the launch of the Manual on Best Practices for the Sustainable Production of Sugarcane, an innovation in the sugar-ethanol sector that contains measures to be adopted in order to comply with legislation, increase productivity, preserve the environment, and improve work conditions for partners.

Let's move ahead together

Another relationship program is the program called Cultivar, launched in 2013/2014, and is undergoing constant evolution to better cater to the needs of our partners.

In the last harvest, we prepared a recap of the facts of the three previous years, in order to identify lessons learned and aspects that needed improvement.

As a result, we repositioned the program under the concept "Let's Move Ahead Together", which reinforces the objective of promoting cooperation in the introduction of innovation that drive development of all those in the Cultivar Community.

The concept is supported by four fronts that enable the development of work plans and tools to improve results.

AGRICULTURAL DEVELOPMENT

A front dedicated to operational efficiency and increase in productivity of the sugarcane fields of our partners. Among the initiatives in this regard are:

Productivity Academy | Aims to share proven and consolidated practices to increase productivity of the sugarcane fields. Throughout the 2017/2018 harvest, aspects such as plagues in the soil, diseases, nutrition and nitrogen supplements will be covered.

Agricultural support | Consulting services based on soil information collected and analyzed. Producers who adhere to the service receive recommendations on how to improve cost reduction with inputs, properly address soil fertility, and choose the best sugarcane variety in order to obtain the maximum production potential of the environment.

Integrated Monitoring of Plagues (IMP) | We offer technology that processes data e provides information for plague control. Also ensures an integrated communication between the team that uses it.

Cultivar Challenge | An initiative that seeks to increase productivity of sugarcane fields through the dissemination of accepted techniques in international reference centers.

Geocana | Launched in 2016, it aims to offer to partners solutions in precision farming that are already adopted in our sugarcane fields. Based on aerial images, we share technologies that allow for better conservation of the soil, increase in productivity, and greater yield from mechanized operations. Click here to learn more.

BUSINESS DEVELOPMENT

It provides access to initiatives intended for the multiplication of financial benefits, business management, and development of the agro-businessman.

Strategic management of farms | Postgraduate course on Corporate Management of Sugarcane Farms, made available by Cultivar and taught in partnership with the Getulio Vargas Foundation. The course covers topics such as sustainability, legislation, economic matters, management, and entrepreneurship.

Purchase of inputs and equipment | Purchasing tool to add our volume of purchases of inputs and equipment to those of our partners in order to ensure better commercial terms.

Credit | Financial support for investments in production with interest rates more attractive than those of the market.

CSC Cultivar | Shared Services Center with the team focused on meeting the demands of partners, such as inclusion, modification, and consultation of orders referring to purchase planning - which are services that continuously focus on financial benefits.

Barter | We manage the tool through which producers can exchange sugarcane for inputs or equipment.

Lubrifica+ | Program that promotes lubrication of agricultural equipment through the supply of adequate products at competitive prices, preventive analysis and collection of filter oil for proper disposal. The idea is to reduce costs for producers and support environmental efficiency in the production chain.

PARTICIPATORY CONSTRUCTION SYSTEM

A work front that convenes regular meetings with suppliers concerning aspects associated with Cultivar in order to identify opportunities for improvements and other relevant topics of the moment.

It also considers the creation of regional committees that strengthen the participation of the members of the Cultivar Community and allow for the continuity of the relationship with this audience.

REWARD AND RECOGNITION

A front that ensures meritocracy through performance indicators through the following initiatives:

Annual Cultivar Meeting | Event through which the best producers receive recognition based on predefined criteria.

Você Conquista | Award for the best producers, announced during the Annual Cultivar Meeting, to enjoy international experience. Click here to learn more.

Cultivar Cultural | Intended to take the best partners to cultural events such as plays, and social and sports events.

Incentive platform | Rewards program for sugarcane producers who achieve the best results pursuant to pre-established indicators.

Carriers

|G4-DMA Transports|

We are one of the main fuel distributors in the country, using a variety of logistics modes to transport the product. In the highway mode, 100% of the fuel volume is transported by partner companies that comply with our strict standards of excellence in terms of Occupational Health, Safety and Environment (HSE).

Through a rigorous approval process of carriers, we check more than 200 items associated with legal, environmental, safety, human and labor rights aspects. We also conduct annual random inspections to ensure compliance of our partners with our criteria. As a consequence of these management practices, we concentrate our logistics in a restricted number of partners. |G4-DMA Environmental Assessment of Suppliers, G4-DMA Supplier Assessment for Labor Practices, G4-DMA Supplier Assessment for Impacts on Society, G4-DMA Supplier Assessment for Human Rights |

The constant maturing of our operations and of partner carriers translates into continuous increase in volume transported, with a reduction in number of accidents.

In order to provide recognition for the best performing drivers and carriers, during the harvest period we conducted the 6th Truck Rodeo, extending the number of finalists from 10 to 50. Participation is associated with completion of the requirements in terms of health and safety. Click here to learn more.

Network of Shell service stations

There are more than 6,000 Shell brand service stations throughout Brazil marketing our differentiated portfolio of products. Learn more about the Shell products offered to our clients by clicking here.

Before branding any service station, we conduct a series of studies such as commercial viability and compliance with environmental aspects. Approved dealers receive an operations manual for service stations that contains procedures and recommendations. They also gain access to consulting services and training courses in order to obtain financial benefits, marketing initiatives, employer safety and environmental responsibility.

Differentiated solutions for dealers

The main initiative to mobilize this audience is the program called Oferta Integrada (Integrated Offering), a package of benefits through which we share market planning and promotional initiatives. The program, whose membership is optional, already has the participation of 80% of the dealers and has contributed to the excellent results among our participating service stations, both in terms of overall sales volume and of sales of the V-Power product line. To learn more about our products, Click here.

Value creation through the Select Stores

As licensees of the Shell brand in Brazil, we also manage the Select Brand convenience stores, whose role is to complement the end consumer experience with safety, convenience, and a wide variety of products and services. For dealers, the store network represents a competitive advantage with strong potential to capture and retain customers through a recognized brand with a profitable and scalable operation.

Dealers who opt to have a Shell Select convenience store in their service station have all the tools to inaugurate the store in as little as 120 days, with support for the opening, visual standards and operating advisory (see the table with our value proposition).

Value proposition

Support for the opening | Guidance during the opening phase of the store and support in quotes with suppliers, registration in the industries, and with the logistics operator, as well as supervision of product orders and equipment lease.

Store layout | Optimization of space in order to facilitate circulation of consumers and the operations.

Training | More than 60 online and classroom training courses available about business management, systems, store operations, stock management, inventory and services, among other aspects.

Food service | Quality assurance of products supplied by Shell Select partners approved by the National Sanitary Surveillance Agency (ANVISA).

Promotional calendar | Promotions negotiated and closed exclusively for the Shell Select team, in addition to synergy with the communication of the Shell brand.

Incentives campaign | Developed to promote the increase in the average ticket and sales.

Systems | For operations and sales management, which facilitates the dealer's daily routine.

Logistics | Orders centralized in a purchase portal and supplier center, and certified logistics operators that adopt best market practices.

Consulting | Developed for the needs of each store, they are intended to improve results and profitability.

Innovation | Research and development of solutions to constantly improve the Shell Select network.

In 2016/2017, we maintained the growth rate for the Shell Select stores - 5% compared with the previous harvest - with a 12% growth in sales. These numbers support our leadership in terms of average sales per store and average ticket for sales. This platform continues to receive investments to expand our offering of products and efficiency in logistics with a reduction in average cost.1

1Source: SINDICOM Yearbook 2016 and 2017

Shell Select Highlights2

990 stores

Transactions: 94.42 million/year
Average ticket per transaction: BRL 13.88

 

2.57 million espressos/year

2 million kg of food service/year

 

Faturamento: R$ 1,3 bi

200 promotions conducted, involving more than 1,000 products and sales of BRL 75 million

2Source: Raízen Conveniência 2016, SINDICOM 2016, Ranking Franchise Retailers, Brazilian Franchising Association (ABF).

Valuation for merit

Você Conquista is a program through which we acknowledge dealers that stand out in terms of their operational, employer safety, and environmental care performance, among other aspects.

In the 2016/2017 harvest, we awarded 450 dealers. The winners receive trips to Los Angeles, in the US, for a trophy delivery ceremony entitled to red carpet and the presence of renowned Brazilian artists in movies and television.

Supply management

The contact between our supply team and the more than 5,000 suppliers of equipment, materials, and services, is done through our Supplier Portal.

The purchase processes and contracts are governed by the document Terms of Clauses and General Conditions, which is intended to guarantee supplier adherence to the Code of Conduct and to the requirements for accident prevention, environmental preservation, and decent work conditions, among others.

Suppliers are submitted to monthly verification of documents and, in case of irregularity, the supplier is blocked for new contracts until the issue has been addressed and solved. Recidivism can lead to cancellation of existing contracts.

In the 2016/2017 harvest, we intensified our focus on better understanding the costs in the supply chain through an acquisition decision process for materials and services that take into account, not only the initial costs of contracting, but all costs incurred during the lifecycle - always having in mind the total cost reduction.

We also train our team of users at production units and terminals about the importance of opening records of nonconformity. The idea is to ensure that irregularities by suppliers are identified and formal action plans are agreed upon between the parties.

Specific policies and guidelines can be consulted at the Supplier Portal.

Click here for more information on our relationship with suppliers. |G4-12, G4-EC9|