Link procurement and enterprise development to build SMEs

| 0 Comments
ShawnTheunissen2.jpgAs corporates continue to grapple with the real transformation of their supply chains, they should look at the link between their procurement and enterprise development departments in order to provide SMEs with the openings to market they need, says Shawn Theunissen, head of CSR at Growthpoint Properties and Property Point (Growthpoint Properties’ enterprise development programme), in this month’s SmartProcurement.

Integrating procurement and supplier diversity programmes into enterprise development initiatives can meet the business objectives of the corporate and the SME.

“This market-driven approach develops SMEs so that they can meet the needs of the sector. By working with procurement departments to become ‘procurement-ready’, entrepreneurs are assisted to become compliant, and compatible with the client,” explains Theunissen.

Furthermore, this approach ensures transformation beyond compliance.

Theunissen draws on Growthpoint Properties’ enterprise development programme – Property Point – to illustrate how this can be achieved on a practical level.

“Property Point was developed based on the premise that there is a direct link between procurement and enterprise development, and that this could be used to close operational gaps in a SME’s business model. By designing our programme accordingly, we have unlocked direct procurement opportunities to the value of R62-million at Growthpoint and an additional R50-million in the greater property industry, while creating meaningful supplier diversity for Growthpoint.”

Property Point’s SMEs are thus incubated directly in the opportunity holder's environment.

“Relationships between the procurement department and entrepreneurs are facilitated and enabled through the programme,” says Theunissen. SMEs are exposed to the individuals within the procurement department and key procurement staff work with entrepreneurs on an individual basis to help their businesses become procurement-ready.

The procurement department further facilitates access to markets by aligning businesses with Growthpoint's supply chain needs and requirements. These requirements are also streamlined so that no barriers to entry are created for SMEs.

“Additionally, procurement shares industry insights with our entrepreneurs, enabling these SMEs to tap into the thinking of front-end decision-makers.”

However, Theunissen cautions that this type of integration must be accompanied by business development support and SMEs must be assisted to become more bankable. “By tailoring our approach to meet the needs of each business, our programme managers help them with everything from complying with operational management requirements to developing – and implementing – their own growth strategies.”

While the programme does not provide funding for the SMEs, it assists them to access finance by referring them to financial partners and providing them with an overview of financial products available. Theunissen adds that empowering entrepreneurs with an understanding of financial management forms a critical part of this process.

By facilitating the relationship between Growthpoint’s procurement department and its target suppliers, Property Point works to ensure that Growthpoint provides access to opportunities while diversifying its supply chain at the same time, says Theunissen.

“The direct link the programme has created between our procurement and enterprise development has thus had measurable and meaningful benefits for all parties concerned.”

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