Services

SUPPLIER DEVELOPMENT

Objective:

Identify black owned suppliers and potential suppliers and develop them to ensure reliable supply from them and growth in their companies both in terms of profit and jobs.

Methodology:

Reduce Risk
Select Black owned suppliers and potential suppliers who have the potential to grow their businesses, deliver as contracted and who can mitigate their risks with the required assistance. This will reduce the risk of contracting suppliers that might not perform and on whom benefits are bestowed that may be wasted.

Growth
Once these suppliers and potential suppliers are selected a targeted business architecture is designed that will ensure that the supplier can grow and perform with quality and speed in terms of the growing demand.

Capabilities
An architecture gap analysis between the supplier’s current capabilities and expected capabilities is determined in terms of the following architectural dimensions:

  • Business Strategy;
  • Business Governance (Policies, Procedures and Competencies);
  • Business Functions;
  • Business Operating Model and Processes;
  • Business Organization Structures;
  • Data and Information;
  • Information Systems;
  • Competency of managerial levels.

The following typically Business Areas / Domains are included

  • Management Competencies (Top, Middle and Supervisory);
  • Strategy and Planning;
  • Performance Management;
  • Stakeholder Management;
  • Governance and Compliance Management;
  • Safety, Health, Environmental, Risk and Quality;
  • Supply Chain Management;
  • Logistics (Inventory Management, Distribution);
  • Human Resources (Administration, Recruitment and Selection,
    Training and Development, Salary structures, Employee Relations, Wage Negotiations, HR Policies and Procedures, Organizational Structures and Retrenchments, etc.)
  • Finance (Management Accounting, Accounts Payable, Accounts Receivable, Fixed Assets, etc.);
  • Project Management;
  • Data and Information Management;
  • Information Technology Management;
  • Facilities Management.

Once the total needs analysis is compiled the transformation areas are prioritised as follows:

  • Those required to ensure short term gains that would receive immediate attention;
  • Those that will ensure the capability to meet the increased demand;
  • Those that will ensure sustainable business growth and increased job
    creation.

Transformation
A transformation plan is then configured and the associated cost determined.

Cost
The cost for transformation is then submitted to all their prominent clients (if any) to generate funds collectively in order to support the transformation path of the beneficiary.

Facilitate
Facilitate the contracting between the supplier/potential supplier, the supporting clients and BEE Black. It will be done in such a way that all support will result in BEE points.

Planning
Planned transformation will then start.

Feedback
Continuous feedback on progress and changing needs will be given to the participating clients to ensure success for both the client(s) and the beneficiaries.

Exit strategy
An exit strategy that will ensure continuous growth capability in the supplier business, resulting in a self- sustaining supplier business, will be designed and implemented.

ASSISTANCE TO WHITE OWNED SUPPLIERS

The emphasis on black owned suppliers from the BEE Codes and the Mining Charter poses a risk for many white owned suppliers in the sense that they could lose their preferential supplier status. This is already happening at an accelerated pace.

Objective:

Identify white owned suppliers who have a turnover of less than R50Mil and assist them to sell 51% of their business to Black shareholders

Methodology:

Finding partners
Find suitable black partners (including funding) for them, restructure their businesses to accommodate the black partner(s), design policies and contracts that protect all parties and implement performance contracts to ensure that all parties perform and grow the business.

Restructuring
Apart from restructuring at the ownership, director and top management level the same services as discussed for black owned suppliers, will be made available.

Change
In addition, the partners, their directors and top management will be involved in cross-cultural desensitisation programs to assist them to make the required paradigm mind shift changes.