Developing Standard Bank's procurement purpose - an investment in people

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Meshern Govender small.jpgIn a bid to elevate the status of its procurement function from a transaction focused back office into one considered to be a value enabler for its business units, Standard Bank South Africa (SBSA) is creating a talent nursery, using a defined procurement competency framework to underpin the career progression path of its people, Meshern Govender, the bank’s CPO, told delegates at the SmartProcurement World Conference.

While the bank’s ultimate goal from it procurement initiatives is to unlock sustainable value, it first needed to address basic areas such as clearly defining job descriptions and establishing performance contracts where required.

It then embarked on defining the competency levels required and the applicable minimum standards against which to assess its people’s skills, said Govender.

This lends itself to a culture of continuous improvement where people engage in competency-based training (SLAs, essentials of a contract and financial management), on the job training (classroom-based learning, E-Learning, training manuals and proficiency assessments), and cross-skilling and up-skilling through job rotation.

Peoples’ maturity curve per capability and personal development plans can then be mapped, all the while unlocking sustainable value in the organisation by improving TCO savings.

The bottom line result is an increased amount of Purchase Order spend from 35% in 2008 to 63% in 2010, and a decrease in the number of SBSA suppliers from more than 22 000 in 2008 to less than
10 000 in 2010.

Furthermore, business partner satisfaction increased from 57% in 2007 to 71% in 2010, with the bank’s supplier satisfaction score having increased from 71.1% to 87.5% over the 12 months upto May 2010, noted Govender.

Value adding

The implementation of the framework has aided the bank in managing supplier BEE certificates, 74% of which it now has on file, and proactively managing their expiration; and improving spend performance via set-asides for qualifying small enterprises/exempt micro enterprises and black owned/black women owned categories, said Govender.

Incorporating BEE requirements into the strategic sourcing processes (RFP, RFI and tender evaluation) has further aligned SBSA to the DTI’s Codes and BBBEE Act.

SBSA CIPS Southern Africa Procurement Awards 2010.JPGIn the last 12 months the industry has recognised SBSAs achievements by awarding it ‘Best Process Improvement Award’ (CIPS 2010), ‘Best Green Organisation Award’ (CIPS 2010), and ‘Logistics Enviro Award’ (22nd Logistics Achiever Awards).

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