Enterprise Development

How to get buy-in for sustainable procurement

DeFariaLopes_Marais_150.pngBy Bárbara de Faria Lopes, Sustainability Consultant, IQbusiness, and
Christelle Marais, Sustainability Lead, IQbusiness

Financial factors are no longer the only consideration for businesses. Governments, investors, non-governmental organisations (NGOs) and society at large are increasingly holding companies accountable for their social and environmental impact. Organisations, therefore, need to identify and address sustainability risks within their own operations and supply chains. Sustainable supply chains require the implementation of sustainable procurement (SP) practices or the joint consideration of social, environmental and economic factors in an organisation's purchasing behaviour as well as supplier engagement.

The uptake of SP within South Africa and the broader African continent, unfortunately, appears to be lagging behind developed economies. To drive a change in procurement behaviour requires awareness, buy-in and a compelling business case. Here are five principles to achieving this:

SMME Clinic | Financial compliance for small business is the key to support - Session 21

SMME Clinic interviews Annie McWalter, Managing Director of SAICA ED and the Hope Factory, who shares great insight into how the COVID pandemic has shown the importance of compliance for SMMEs.

5 LEAPs towards successful ESD programmes

ESD_200.jpgInitiating an enterprise and supplier development (ESD) programme is not something to rush into. It is a process that will achieve very little for everyone involved if it is not carefully planned, aligned with coherent business and supply chain strategies, and rolled out to candidates that have true potential.

Lean enterprise acceleration programmes (LEAP) has for more than ten years provided strategic and comprehensive ESD advisory to corporates as well as provided tailor-made support services to small to medium enterprises (SMEs).

LEAP seeks to create lasting impact by observing five main principles. We take a look at the five LEAPs in this month's SmartProcurement.

SMME Clinic | SABS standards during Covid-19 - Session 9

SMME Clinic interviews Dumisani Ngadi, from the South African Bureau Standards (SABS), on how small business can secure SABS accreditation for their products in Covid-19.

For more information email Dumisani Ngadi at dumisani.mngadi@sabs.co.za or contact him on +27 72 267 7955

SMME clinic | Pandemic proof your business - part 2

Elmarie Goosen flips things around and interviews Smart Procurement COO, Debbie Tagg on how Smart Procurement itself is addressing the pandemic and supporting small business.

#BetterTogether

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Hey procurement, speak to startups!

MatthiasGutzmann_100.jpgAfter I left Procurement Leaders last year to join Old Street Labs, a startup that helps large organisations to work more collaboratively with their strategic suppliers and, ultimately, drive more value beyond savings, I was sceptical as to how we can catch the eye of these giant companies. Apart from having a timely and relevant product called Vizibl, both my Chief Executive Officer, Mark Perera (who also founded Procurement Leaders), and I came with a strong network of procurement professionals, which helped. Other unknown startups out there do not have that network and are thus having a very hard time even getting a foot in the door.

Matthias Gutzmann, Founder of Digital Procurement World, tells SmartProcurement more.

'ESD programmes not relevant and funding remains a problem' say entrepreneurs

LouisaPaulsen.jpgThe SEED Engine is currently running its annual The Real State of Entrepreneurship Survey. In 2018, more than 1 500 entrepreneurs participated in the survey. The survey findings were enlightening, but not unexpected: enterprise supplier development (ESD) programmes that are intended to assist entrepreneurs are proving to be of little value to the majority of entrepreneurs, many of whom attend several per annum with a view to access purchase orders.

While ESD programmes are sending entrepreneurs back to school, many indicated that the programmes are not addressing the specific needs of their businesses.

Procurement contracts are turning entrepreneurs away as contracts are often not split or designed to accommodate smaller role players in sectors.

Entrepreneurs further flagged corruption among procurement personnel as a serious and growing issue, one that is adding to the cost of doing business.

Louise Paulsen, a consultant, advisor, director and mentor in localisation and enterprise development, highlights the main issues from the 2018 survey.

Join us at Smart Procurement World Gauteng, where a panel discussion entitled 'Reducing the SMME Mortality Rate' will unpack the development of effective exit strategies for SMMEs that have completed corporate ESD programmes. >>

10 things that I have learnt about mentoring Anzisha fellows

Louise1_125.jpgProcurement and supply chain professionals have such a broad range of skills and cross-functional business knowledge that it makes us all ideal mentors. Mentors share their professional knowledge/experiences and act as positive role models to mentees in need of some direction.

This is especially true when engaging with suppliers and mentoring young entrepreneurs partaking in enterprise supplier development (ESD) programmes. Small South African businesses are in desperate need of help...it will take some time and commitment, but the results are extremely rewarding.

Louise Paulsen, Consultant, Advisor, Director and Mentor in localisation and enterprise development shares what she has learnt while mentoring Anzisha Prize fellows remotely. The Anzisha Program is a partnership between the African Leadership Academy and the Mastercard Foundation; it seeks to increase the number of entrepreneurs generating jobs in Africa.

Harness procurement for socio-economic growth in sub-Saharan Africa

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From left to right: Goodall Gondwe, Minister in Finance, Economic Development & Planning, Malawi; Margaret Mwanakatwe, Minister in Finance, Zambia; Mizinga Melu, CEO of Barclays Bank, Zambia.

Delegates at the inaugural Africa Procurement & Enterprise Development Summit (APEDS) threw their weight behind a drive to ensure that the public and private sectors harness procurement for socio-economic growth in sub-Saharan Africa.

By adopting a resolution and key actions at the summit, delegates acknowledged the urgent need for accelerated leadership and focus on developing sustainable SMMEs through public-procurement reforms and private-sector participation.

The resolution ties in with the summit's goal to bring together seasoned professionals, dedicated to the changing nature of the procurement ecosystem in Africa to discuss how procurement can drive socio-economic growth, sustainable procurement, localisation, SME development and other topics distinctive to procurement in Africa.

Love procurement - because it can impact society and the environment

Join us at Smart Procurement World 2019, where one of our conference themes will be "Walk the talk: High-impact procurement"

RobertFreeman_100.jpgProcurement work is much more than just securing the right products, in the right quantity and quality at the right place... Let's think wider, more holistically, writes Robert Freeman, a procurement and supply chain expert at Future Procurement, a procurement coaching and consultancy organisation.

Part 3 - Does tertiary education kill the drive to start a small supplier?

CorneliaOlivier.jpgThe growth of small businesses in South Africa is severely affected by the institutional environment in which they operate. In this series of articles, Cornelia Olivier, Head of Sourcing: Corporate Services, Absa, looks at South Africa's institutional environment.

In the final part of the series, Olivier tells SmartProcurement how extending formal credit to household enterprises in South Africa supports a proportionate growth in the number of formally registered small businesses, but she is concerned that the country's education system may be cutting down our entrepreneurial ambitions...

Part 2 - Enabling small supplier growth in SA vs 75% of SME Credit Applications Rejected

CorneliaOlivier.jpgResearch indicates a strong link between owner-manager education, access to finance and small business growth

The growth of small businesses in South Africa is severely affected by the institutional environment in which they operate. In this series of articles, Cornelia Olivier, Head of Sourcing: Corporate Services, Absa, looks at South Africa's institutional environment.

In part 2, Olivier discusses how business growth links with education and formal credit extension to small businesses.

Beyond small supplier funding - the crucial role of skills development

KhanyaOkumu.jpgAlthough it is now common knowledge that funding small suppliers is key to igniting the engine of inclusive economic growth, the evaluation and development of relevant skills play an equally significant role in powering the economy.

It is this focus on skills development that underpins the operating principles of Old Mutual's Entrepreneurship Ecosystem.

In this month's SmartProcurement, Old Mutual's SME Development Manager, Khanya Okumu, explains the financial group's premise that a small supplier run by people who possess the right skills will have a firm foundation and the potential for sustainable long-term growth.

Khanya Okumu will be at Cape Town's Enterprise Supplier Development (ESD) Expo in May 2018. Join her at the Expo, and it's partner procurement conference Smart Procurement World, to great insights into ESD >>

Enabling of small supplier growth in SA - formal credit extension and education

CorneliaOlivier.jpgThe growth of small businesses in South Africa is severely affected by the institutional environment in which they operate. In a series of three articles, Cornelia Olivier, Head of Sourcing: Corporate Services, Absa, unpacks two formal institutional enablers necessary for small suppliers to grow. Olivier provides some insight as to why as many as 75% of small, micro and medium enterprises (SMMEs) in South Africa fail, despite a seemingly nurturing South African institutional environment.

In Part 1, she discusses the small business landscape in South Africa.

Can Enterprise and Supplier Development equal cash efficiency?

StuartTownshend.jpgIn this month's SmartProcurement, Stuart Townshend, Edge Growth Director, explores how you can use your Enterprise and Supplier Development (ESD) initiative to be cash efficient, and become self-sustainable - yet making a positive impact where it is needed most.

Gauteng uplifting SMMEs through procurement

 

MEC_BarbaraCreecy_SPW.jpgRecent studies by Stats SA indicate that the face of poverty in South Africa remains black, female and that of children below the age of 17. Furthermore, more than one in every two SA citizens can be officially classified as poor, said Gauteng Finance MEC Barbara Creecy at the Smart Procurement World conference in Johannesburg.

“[Stats SA’s] Poverty Trends Report shows that by 2015, approximately 33% of Gauteng’s citizens were living in poverty. Although this is lower than most of the country, it is not a cause for celebration. One in three Gautengers go to bed without a meal. The situation was further worsened by the province losing 146 000 jobs during the last financial quarter,” said MEC Creecy.

The most direct and effective route to address these socio-economic challenges is a programme of transformation, modernisation and re-industrialisation. Gauteng’s provincial government is currently implementing such a programme in partnership with the private sector, organised labour and civil society, said MEC Creecy.

Small suppliers for big impact: optimising your supply chain in a turbulent economy

 

StuartTownshend.jpgIn our third consecutive quarter of negative growth, it’s becoming all too clear that South Africa is well and truly facing some tough economic times ahead, and businesses are already beginning to suffer.

According to Statistics South Africa, weak manufacturing and trade sectors led the recession, with falls of 3.7% and 5.9% respectively in the period of Q4 2016 and Q1 2017. More worrying is that over the last quarter, the tertiary sector (comprising government, trade, transport, personal services and finance) recorded its first quarter of decline since 2009.

Times are tough and money is tight. And while it can be tempting to put your big plans on hold until the worst has passed, you might be missing a golden opportunity to recession-proof your business by shaking things up in your supply chain and adding more SME suppliers to your database, says Stuart Townshend, Edge Growth Director, in this month’s SmartProcurement.

Set suppliers up for success and mitigate preferential procurement risks

 

Even if organisations are not doing business with organs of state, they may well form part of the supply chain of organisations to which the PPPFA directly applies. Therefore, they need to be aware of its scope and provisions.

Corporate businesses are actively seeking and supporting black-owned and black woman-owned Exempted Micro Enterprises (EMEs) and Qualifying Small Enterprises (QSEs) as suppliers to meet the stringent Preferential Procurement Policy Framework Act (PPPFA) regulations.

If successfully implemented, this approach could stimulate the desired growth and economic transformation as the B-BBEE Act intended from the start, by providing greater opportunities for small, medium and micro enterprises (SMMEs), particularly those owned by historically disadvantaged South Africans (HDSAs).

“However, while this is positive, merely complying with the PPPFA is not going to guarantee the success of SMMEs: there are factors outside the control of regulations and policies that need out-of-the-box solution,” Terence Gregory, CEO of Ecsponent Limited, told SmartProcurement.


 

 

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One of South Africa's leading, mining companies is