Barriers Reduced! Enterprise development to unlock supply chains

| 0 Comments
ShawnTheunissen.jpgIn the face of changing BEE codes enterprise development (ED) programmes provide a means of removing barriers to market entry and creating sustainable jobs, says Shawn Theunissen, head of CSR at Growthpoint Properties and Property Point (Growthpoint Properties’ enterprise development programme), in this month’s SmartProcurement.

However, Theunissen says this necessitates that companies change their view of procurement as an opportunity holder and link supplier diversity programmes directly into their enterprise development initiatives.

Supply chain management (SCM) cuts costs and improves efficiency; however, procurement departments are now considering SCM in the context of the new BEE codes, amendments to which are set to change how companies select suppliers.

Consequently, ED programmes are coming under increased scrutiny as companies begin to review the real impact – and value – of ED investment in line with the latest BEE requirements.

While programmes should unlock opportunities within organisations and enable transformation beyond compliance, very few of them seem to be meeting these objectives and developing the next generation of small business suppliers in a meaningful way.

“It is critical for us to ask why this is not the case, and what needs to be done by corporates to unlock opportunities in order for SMEs to thrive and become legitimate suppliers of choice,” says Theunissen.

Developing and managing Property Point, Growthpoint Properties’ enterprise development programme, over the past five years has given Theunissen a number of unique insights into this challenge.

Perhaps the most important of these is that unless procurement and supplier diversity programmes are actively integrated into enterprise development initiatives, one runs the risk of creating a disconnect between the corporate and the SME.

This is typically because the SME usually does not understand the opportunity-holder or business – often at a very basic level. This lack of understanding subsequently manifests as an inability to compete effectively with more established suppliers and/or secure contracts from the organisation starting at RFP level in many cases. Needless to say, this has implications for both parties.

While some corporates have chosen to address this by assisting non-core small businesses, a more viable long-term alternative is to structure one’s enterprise development model to create an integrated support practice.

"In this way, one can improve individual SME competitiveness and facilitate implementation of their respective growth strategies, as well as encourage sustainability - something we have seen at Property Point," says Theunissen.

“By incubating SMEs directly in an opportunity-holder environment, we work to facilitate the relationship between Growthpoint’s procurement department and the various entrepreneurs on our programme. In this way, we partner with all parties involved to ensure that SMEs on our programme become ‘procurement ready’."

In the months to come, Theunissen will share, through case studies and articles, details of Property Point’s programme.  “Until then, I encourage you to better understand the procurement opportunities your own organisation holds – as well as the barriers to entry it simultaneously creates, especially for SME suppliers. This will provide you with the ideal means to challenge and change this system, and start to unlock the true potential of your own supply chain.”

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

Career opportunites

Purchasing and Supply Manager

  • <500 000 >500 000 Gauteng Permanent Procurement Management Supply Chain
Purchasing and Supply ManagerThe CSIR has a vacancy ...More

Senior Manager Public Sector

  • >500 000 Gauteng Permanent Procurement Management Projects / Category Management
 Senior Manager Public SectorTotal Cost to Company: R1.1mil ...More

Senior Manager: Mining

  • >500 000 Gauteng Industrial Engineer Permanent Projects / Category Management
Senior Manager: MiningTotal Cost to Company: R900k – ...More

SUPPLY CHAIN MANAGER

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
SUPPLY CHAIN MANAGER(Total Cost to Company R750k – ...More

Master Data Management Advisor

  • >500 000 Gauteng Permanent Procurement Management Projects / Category Management
 MASTER DATA MANAGEMENT ADVISOR(Total Cost to Company R750k ...More

PRO - Performance Reporting

  • >500 000 Permanent Procurement Consultant Procurement Management Projects / Category Management
PRO - Performance ReportingTotal Cost to Company: R800k ...More

PRO - Risk & Governance

  • >500 000 Gauteng Permanent Procurement Management Projects / Category Management
PRO - Risk & GovernanceTotal Cost to Company: ...More

Supply Chain Site Manager

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
Supply Chain Site ManagerTotal Cost to Company R1mil ...More

Chief Financial Officer

  • >500 000 Gauteng Permanent Procurement Officer / Specialist
Chief Financial OfficerTotal Cost to Company R1.5mil – ...More

Process Engineer- WMS

  • <500 000 >500 000 Industrial Engineer Permanent Projects / Category Management Western Cape
Process Engineer- WMS(Total Cost to Company R350K – ...More

Forecast Analyst

  • <500 000 Analyst Permanent Procurement Management Western Cape
Forecast Analyst(Total Cost to Company R350K – R500K) Location: ...More

Group Category Manager: Indirects

  • >500 000 Permanent Procurement Management Projects / Category Management Western Cape
Group Category Manager: Indirects(Total Cost to Company R700K ...More

Group Category Specialist: Chemical

  • >500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Group Category Specialist: Chemical(Total Cost to Company R700K ...More

Sourcing Specialist - 3rd party

  • >500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Sourcing Specialist - 3rd partyTotal Cost to Company ...More

Global Procurement Lead (Processing)

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
 Global Procurement Lead (Processing)Location: JohannesburgTotal Cost to Company ...More

Global Supplier Performance Manager

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
Global Supplier Performance Manager Location: Johannesburg  Cost to ...More

Group Customer Service Lead

  • <500 000 >500 000 Analyst Gauteng Permanent Procurement Officer / Specialist
Group Customer Service Lead  Location: Johannesburg As the ...More

Business Intelligence Manager

  • <500 000 >500 000 Gauteng Permanent Procurement Management Supplier / Business Development
Business Intelligence Manager Location: JohannesburgLead the development, implementation, optimization ...More

Group Procurement Manager

  • <500 000 >500 000 Gauteng Permanent Procurement Management
Group Procurement Manager Location: Johannesburg  A Global Organization ...More

Commodity Manager Packaging

  • >500 000 Commodities Gauteng Permanent Projects / Category Management
Commodity Manager Packaging  Location: Johannesburg Salary: R850k– R1.1mil ...More