Supplier Linkage Programme:
The Supplier Development interventions in this proposal intend to build the competitiveness of suppliers, to improve their sustainability in the business sector and will enable them to improve their chances of more business opportunities to participate in the mainstream economy.
From the perspective of CPO’s some of the key shortcomings that hamper SME success is the lack for a compelling value offering and been able to deliver on it. My experience the last year in a supplier development initiative, SAIBL has confirmed the same trend. At business linkage meetings arranged for suppliers with coporates, although suppliers were afforded the opportunity to pitch their businesses to corporates they have failed to do the following:
- Offer a compelling value offering;
- Their inability to pitch effectively although been afforded the opportunity; and
- Once provided an opportunity to deliver on their value offering they fail to do so
Being a past Supplier Chain Executive within a listed corporate for over 5 years has prompted me to develop materials and programmes in helping SME’s to better understand what is driving the CPO’s agenda and to be effective in pitching their value offering. Suppliers should understand the key drivers that influence purchasing decisions.
The objective of this Supplier Development Programme is to improve, gain and/or increase business opportunities through effective engagements with Buyers / Sourcing Specialists of corporates or through tendering mechanisms. Increase in business linkage opportunities for SMME’s
Suppliers that will Benefit from the Programme / Selection Criteria
- SMMEs from the service, manufacturing, engineering and construction industry.
- SMMEs that is registered for VAT and UIF.
- SMMEs that is compliant with the regulations of the particular sector where they are active.
- Small and micro black owned business owners are the primary target. These businesses must have existing infrastructure in place e.g. staff, offices, equipment etc (to serve as a basis for a growth plan).
- SMMEs that has an appetite to increase their revenues and seeking ongoing business opportunities.
I recommend that the above shortcomings can be overcome through two distinct phases envisaged in this process. Workshops to educate and sensitise the suppliers covering the following topics:
The course content includes the following:
- Practical workshops on how to prepare and pitch for business when meeting with procurement officers and buyers. Understanding value offering, strategic selling and innovation techniques
- Conducting briefing sessions on business matchmaking and buyer meets supplier events ? what to expect and how to prepare for it (ensure effective engagements)
- Conducting a supplier diversity and development workshop with suppliers to ensure that they understand the concept of supplier diversity and supply chain development best practice factors.
Specific demand driven interventions on an individual company basis could include the following:
- Supplier’s Unique Selling Proposition (USP) Development / Aligning of marketing materials with supplier pitching strategy for effectiveness (inclusive of the preparation of an elevator speech)
- Value Proposition Development
- Elevator Speech Development
- Value Chain Analysis to improve Supplier Pitching Effectiveness
- BBBEE rating improvement ? assist suppliers to ensure they do get maximum results from BBBEE ratings or work on the BBBEE elements that undermines ratings with the aim to improve current BBBEE scores
- Introductory meetings with corporate procurement officers
- Facilitating trade mission trips and/or matchmaking events for suppliers - arrangement and facilitation of business linkages for suppliers through attendance of shows and events ? prepare suppliers for effective engagements
The service provider is a certification business to the South African Supplier Diversity Council (SASDC) and link businesses to the council who shows an interest. The SASDC is for business owners who are serious about growing a sustainable business and increasing their supply to corporates in South Africa. The SASDC is a member-directed, not-for-profit organisation. It is the first of its kind in South Africa, and is affiliated with a global network of five supplier diversity councils. The existing members of the Council are ABSA, Barloworld, Cummins, De Beers, First Rand, Foskor, Johnson Controls Facilities Management, Rand Water, Sasol, South African Breweries, Standard Bank, Unilever, IBM, Cisco, Drake & Scull, Afrox, Anglo-American, Pzifer, Mutual & Federal, BP, Shell, Coca-Cola and Transnet. The goal of the SASDC is to facilitate business to business linkages between its corporate members and bona-fide Black Owned Business Enterprises geared towards becoming long-term, qualified entities capable of competing in the national and international economic mainstream. The SASDC implements a rigorous black supplier certification process and maintains a database that is approved by the Council’s members as a collectively endorsed methodology and standard for assessing and certifying black suppliers with whom they would be prepared to transact. Applicant businesses that are successfully certified are loaded onto the SASDC Black Supplier Information System (BSISYS) database.
This Supplier Development Programme should deliver and achieve the following outcomes:
- Overcome barriers of entry
- Increased competitiveness.
- Increased capability and capacity of suppliers.
- Linkages to corporates seeking to purchase goods and services from small black suppliers.
- Procurement savings.
- Increased security of suppliers.
- Improved supplier performance.
- Job retention and creation.
- Poverty reduction.
- Increased turnover.
The key is INNOVATION through a well-defined value-offering that speaks the needs of Buyers / Sourcing Specialists. This supplier development programme enjoys the support from SASDC, ECIAfrica Consulting, SAIBL and suppliers within our programme.