Supplier Development should not be interpreted as an issue of compliance or been seen as an issue of “transformation”. Currently many companies are more concerned of achieving the full points for a specific BBBEE element to ensure that they maximize their BBBEE levels. If this is the case this is a short-term view or very shortsighted.

 

A key element of procurement is the Optimisation of spend to the benefit of a companies bottom-line. A saving made by procurement contribute directly to the bottom-line of a company.

 

Chief Procurement Officer’s (CPO) worldwide hold a different view: They don’t need BBBEE codes when it comes to their supply bases – the reality is they understand the methodology and is measured against the savings they made. In simple terms  they cant ignore Supplier Development – it helped them to achieve their procurement objectives. This is what key CPO’s are saying:

 

“As we transform or expand we need to ask ourselves who is our supplier of the future and how can we develop our supplier of the future to partner with us to be relevant with us in the future.”(TOYOTA)

 

“It is more than just been certified – innovation, to be relevant, able to strategically sell its value proposition and to grow with corporates as they expand. As our company grows so should our supplier as a partner grow too. Companies cannot afford that their suppliers are not growing with them. This shall undermine their future positioning, growth, expansion into new markets and more so contribute to successfully meeting customer needs. (Coca-Cola)

 

 

Given how CPO’s are looking at supplier development and the opportunity presented by the Amended BBBEE Codes, below is a demonstration of what was said above:

 

 

 

n  Reduction of costs through SD can lead to cheaper pricing & competitive bids by suppliers

n  Cost reductions leads to competitiveness for both parties

n  Assist SD support organisation improve its own competitiveness and gain markets

n  Suppliers have the opportunity to offer same commodities to markets at ruling prices or a competitive price

n  Suppliers experience better profitability and lead to better opportunities

 

Let us develop you a Supplier Development Plan based on the above model.

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Supplier Development (SD): You Can’t Ignore This

 

My experience within Corporate South Africa is the issue of interpretation: Is SD an issue of compliance or cost or an investment. Currently many business’ are more concerned of achieving the full points for a specific element to ensure that they maximize their BBBEE levels. If this is the case this is a short term view or very shortsighted.

 

Chief Procurement Officer’s worldwide hold a different view: They don’t need BBBEE codes when it comes to their supply bases – the reality is they cant ignore Supplier Development:

 

“As we transform or expand we need to ask ourselves who is our supplier of the future and how can we develop our supplier of the future to partner with us to be relevant with us in the future.”(TOYOTA)

 

“It is more than just been certified – innovation, to be relevant, able to strategically sell its value proposition and to grow with corporates as they expand. As our company grows so should our supplier as a partner grow too. Companies cannot afford that their suppliers are not growing with them. This shall undermine their future positioning, growth, expansion into new markets and more so contribute to successfully meeting customer needs. (Coca-Cola)

 

The key is INNOVATION through the a well-defined value offering that speaks to our needs and driving the CPO agenda (Macy’s)

 

Given how CPO’s are looking at supplier development and the opportunity presented by the Amended BBBEE Codes, this is the reason why your company cant ignore Supplier Development:

 

 

Your company’s current BBBEE Levels  will drop for the following reasons: Supplier Development has been introduced as a BBBEE element; the alignment of SD with your procurement spend; procurement points have increased to include SD; mandatory  and the elimination of some BBBEE elements. This will cause that company’s BBBEE performance is been impacted that will cause that scorecards & BBBEE Targets are not met. What aggravates the situation that Misrepresetnation of suppliers due to Fronting can cause damage to supplier relationships that can bring about harsh penalties and that companies not achieving their BBBEE targets. There will be now a Closer link between ED & SD that will cause that spend will be link to SD. Specialist knowledge to is now required from Procurement Specialists to develop a Supplier Development Plan to ensure that  targets and performance are met.


Here is one key action how companies can strategically position their businesses to ensure that SD is successfully implemented within their companies:

 

Clever businesses will start the process now of identifying black businesses who can supply substantial values of goods and services.  If you would like to know more of how to develop and implement a SD plan please call our supply chain consultant, Joe Ruiters

 

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The Innovation Hub Maxum Mentorship Award to our Managing Partner

 

Our managing partner, Joe Ruiters has just been awarded a 2 year Mentorship Contract starting in November 2014 to October 2016. He has been selected to serve The Innovation Hub Maxum Incubator Mentos panel to provide mentoring services to the incubates. This confirms the excellent work he’s done in developing businesses from virtually nothing and position them as businesses. He is a modern day “Nehemiah” – a rebuilder of broken and fallen walls. A true Empowerer – a man that connected and linked his natural abilities with his destiny. A renowned international motivational speaker & empowerer. He is an in-season visionary with a clear Godly mandate to speak on True Freedom with emphasis on economic freedom. He has been strategically placed by God serving the economic, social, political and more so the spiritual cause of this generation.

 

The Maxum incubation programs provide an enabling environment where start-ups from the knowledge-intensive sectors including sustainable development, green economy information and communications technology (ICT), biosciences, electronics, and advanced manufacturing and materials, are fast tracked to compete in the global village. Incubation fast-tracks the growth of early stage businesses, improving the survival rate of start-up companies by helping them become financially viable, usually within two to three years. Incubation also creates a synergistic environment where entrepreneurs can share learning, create working partnerships and do business together and it helps to open doors to markets and resources. The Maxum Incubator is managed by The Innovation Hub Management Company, a subsidiary of the Gauteng Growth and Development Agency, an agency of the Gauteng Department of Economic Development. The Maxum Innovation HUB is a front runner in the incubator industry. 

 

Should you require any details or more information on how you either can access this incubator program or been mentored by Joe Ruiters, please do call one of our leading associates at The Business Associate**

 

 

** - you'll find our details HERE...

 

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As Entrepreneurs we often ask ourselves how to prevent cutting jobs at a crucial stage in your business development?

 

1.     TURNAROUND SOLUTIONS

The Declaration of the Presidential Jobs summit (October, 1998) outlined a Turnaround Solutions Programme that aims, where possible to prevent job losses or a decline in employment. It seeks to actively manage retrenchments and reduce their effects on individuals, enterprises and local economies.

The specific aims of the Programme are to:

·       Avoid and prevent job losses

·       Manage the retrenchment process, where job losses are unavoidable

·       Integrate retrenched persons into the mainstream economy, where possible.

The Turnaround Solutions Programme identifies jobs that can be saved and institutes processes to enable those rescues. The Programme is generally applied in companies, with +-50 or more employees, facing the threat of large scale retrenchments.

2.     SMALL, MEDIUM AND MICRO ENTERPRISE DEVELOPMENT

Productivity SA has developed action learning solutions to assist Small, Medium and Micro Enterprises (SMMEs), including Cooperatives aimed at equipping SMMEs with the right skills, knowledge and attitudes to implement systems and procedures to improve productivity, profitability, growth and employment creation within these sectors.

·       The Business Performance Improvement Workshops (BPIW)

·       Productive Capacity Building Programme (PCBP)

Provide SMMEs with productivity competency skills that can be applied immediately to improve productivity within their businesses. Seeking to build established partnerships with agencies and organisations that are charged with the responsibilities of developing small enterprises to share the investment in the development of SMMEs. These partnerships initiate a journey for SMMEs towards improved performance, service delivery, profitability, growth, employment creation and organisational competitiveness.

 

 

Productivity SA has become an ambassador for innovation. For further information you can get in touch with one of our Business Associates to assist you to explain how to capacitate yourself around their ED & SD program.**

 

** - contact us here

 

 

 

 

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AIRPORT COMPANY SOUTH AFRICA

 

Transforming the wheels of change, Opportunities can be shared fairly amongst the BIG & little guy.

 

Airports Company South Africa, Cape Town International Airport is delighted to have hosted its first ever Business Opportunities Conference. The conference was held at the Cape Town International Convention Centre on Thursday, 16 October 2014.

The aim of the conference was to create an open platform for engagement with small, medium to big business owners and entrepreneurs. The airport showcase the commitment of Airports Company South Africa in making a meaningful and sustainable contribution to transformation in South Africa through its corporate strategy that focuses on job creation and Broad Based Black Economic Empowerment (BBBEE) factors such as: employment equity, skills development, preferential procurement, enterprise development and socio-economic development.

The conference showcased some of the upcoming business opportunities in the Commercial, Projects and Facilities Management environments. "Some of the conference objectives included creating an understanding of the procurement requirements when tendering for business. We've been told that these can be quite complicated and we are determined to simplify these," said Deidre Davids, Communications Manager: Cape Town International Airport.

"We are serious about our role in growing the economy. The airport is on a drive to get more businesses tendering, be it a well-established or small to medium enterprise; we are looking forward to engaging different companies from different industries," added Davids, Communications Manager for Cape Town International Airport.

Airports Company South Africa (ACSA) has become an ambassador for innovation and forward thing strategizing. For further information you can get in touch with one of our business associates to assist you to explain how to capacitate yourself around their ED & SD program

 

#blackbusiness #smme #strategicalliances #changeforthebetter #acsa #tba #thebusinessassociate #opportunities #BBBEE

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