Facilitating SME's relationships with procurement promotes meaningful SC transformation

ShawnTheunissen.jpgTo actively make an SME opportunity possible in the corporate sector and ensure meaningful supply chain transformation, it is imperative to facilitate SME relationships with procurement – as the opportunity-holder – from the outset. This should be done by means of one’s enterprise development initiative, says Shawn Theunissen, head of CSR at Growthpoint Properties and Property Point (Growthpoint Properties’ enterprise development programme), in this month’s SmartProcurement.


Facilitating SME relationships directly with procurement will, however, typically require a mindset change from all parties concerned, he cautions. “While taking a more market-driven approach and partnering with entrepreneurs to assist them to become ‘procurement-ready’ will have real benefits for both the corporate and the SME, everyone involved must actively commit to the process. Various touch-points need to be created, and relationships developed and maintained.”

Theunissen recommends formalising this process through one’s enterprise development programme – as has been done by Property Point since it first started its programme in 2008, despite this not being the typical approach taken by most ED practitioners.

“As Growthpoint Properties’ enterprise development initiative, we recognised the value of enabling SMEs to tap into the thinking of our front-end decision-makers from the outset. To this end, our procurement department has been involved in the programme ensuring supply chain integration from the very beginning.”

This approach continues today. “Not only does the procurement team sit on our selection panel but, post-selection, each SME’s procurement-readiness is subsequently assessed as part of its development map.”

SMEs also attend a procurement induction session where they are given insights into the process and exactly how it works. This enables any misperceptions about procurement-readiness to be addressed, and all parties’ expectations to be appropriately aligned.

“Because SMEs receive business development support throughout (incorporating aspects of self-development, compliance and governance, among others) and we assist them to become bankable, the programme is able to mitigate the risks often associated with small suppliers. It also overcomes any reputational concerns Growthpoint might have in terms of the SME not having an established track record in the property industry.”

By creating a symbiotic relationship between the SME and procurement as the opportunity-holder, Property Point encourages innovation and consistently educates these businesses about procurement standards and requirements – improving their operations, notes Theunissen.

As a result, incubated SMEs are able to compete for Growthpoint contracts and find new ways to add value. “Direct integration with procurement thus improves their chances of becoming successful and sustainable in the long-term.”

The programme has correspondingly ensured that Growthpoint Properties diversifies its supply chain whilst simultaneously increasing its BEE compliance – critical given the requirements of the new B-BBEE codes.

“The ongoing relationship between SME suppliers and Growthpoint’s procurers has additionally increased levels of service and improved delivery.”

By using one’s enterprise development initiative as a bridge to initiate and then facilitate a positive and mutually-beneficial relationship between procurement and SMEs, one can ensure that “opportunities” are in fact meaningful and can be accessed by small businesses. “This, in turn, will ensure that your organisation moves beyond a tick-box approach to compliance and transformation,” says Theunissen. 

Leave a comment

SmartProcurement Newsletter

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:
* Country:
* Public / Private:



Career opportunites

Warehouse Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
R400 000 - R480 000 CTC per annum.Location: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
R400 000 - R500 000 per annum.Location: Cape ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Consultant
R650 000 - R750 000 per annumLocation: Cape ...More

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R 800 000 - R 900 000 ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Salary: R 600 000 - R 650 000 ...More

Supply Chain Analyst

  • <500 000 Analyst Gauteng Permanent Supply Chain
R600 000 - R700 000 per annum Location: ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Management
R850 000 - R1 000 000 per annumLocation: ...More

Commodity Manager

  • <500 000 Commodities Permanent Procurement Management Western Cape
R700 000 - R850 000 per annum,Location: Western ...More

National Supply Chain Manager

  • <500 000 Across borders Permanent Procurement Management Supply Chain
R750 000 - R1 000 000 per annum,Location: ...More

Industrial Engineer

  • <500 000 >500 000 Industrial Engineer Operations, Planning & Inventory Permanent Western Cape
R450 000- R500 000 CTC per annum,Location: Western ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Management
Category: Procurement,Salary: R700 000 - R800 000 per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Category: Consulting,Salary: R750 000 - R800 000 CTC ...More

Logistics Manager

  • <500 000 Across borders Logistics & Warehousing Permanent Procurement Management
Category: Logistics,Salary: R900 000 - R1 000 000 ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Area of Specialisation: Planning,Salary: R500 000 - R650 ...More

Industrial Engineer

  • <500 000 Analyst Gauteng Industrial Engineer Permanent
R800 000 - R850 000 CTC per annum.Location: ...More

Security Manager

  • <500 000 Analyst Gauteng Permanent Procurement Officer / Specialist
(Total Cost to Company R350K - R550K).This is ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R650k - R750k) excluding

Commodity Manager Raw Materials

  • <500 000 Commodities Gauteng Permanent Strategic Sourcing
(Total Cost to Company R980k - R800k) excluding ...More

Commodity Manager Logistics

  • <500 000 Commodities Gauteng Logistics & Warehousing Permanent
(Total Cost to Company R1mil - R900k).Industry: Engineering

Procurement Consultant

  • <500 000 Gauteng Permanent Procurement Consultant Procurement Management
(Total Cost To Company 550K - 450K) includes ...More