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In the spirit of the holiday season let’s have a bit of fun. In a previous post we wrote about standardisation and 5S as the foundation for supplier development. During the holidays I took my kids to watch Big Hero 6. It was a lot of fun and I would recommend it to anyone with kids. Always attentive to continuos …
Standardisation as a pillar of economic growth Even though the roots of Supplier Development lie in Lean Improvement the role of standardisation has been significantly overlooked in most Supplier Development practises. In the cases where it has been emphasised it has mostly been done as a record keeping function without embedding it in the operations of the company being developed. To many …
In a previous discussion we mentioned the various different metrics in your supplier development process. During this discussion we will explain the rationale for why you should separate these metrics. Conflicting areas of growth As a large company you have specific areas that you view as core to the organisation. On average your supply chain needs would be largely related to …
Are you in the loan business to the SA Government? Do you own a small business? Are you doing business with Government? If you are there is a 87% chance that you have not been paid in 30 days? This my dear small business owner, turns you into a bank. Hopefully you are charging interest to your customer and, considering that …
Deciding on which metrics to use in your supplier development process is critical to the success of the process. Essentially there will be three different types of Metrics that you will use. You will use programme management metrics that will firstly measure the SROI and Diversity outcomes of the programme. You will also measure the growth and sustainability of the individual …
Have we made it? Enterprise Development has gained momentum in South Africa over the past few years. Many in South Africa are still debating if the economy is feeling the impact of this. Some of the reasons behind this are that many companies have gone about outsourcing their current operations, with very little economic value add. In the frenzy to …
Let’s be honest with ourselves. In a contracting economy supplier development does not lead to job creation. Perhaps small black owned companies are employing more black owned staff or that jobs are being localised around a specific region. In a contracting economy the goal of supplier development is, however, not job creation, but rather optimization. That said there are some …
Our ESD Trilogy guide for Entrepreneurial Development consists of the following principles: Enterprise and Supplier Development (ESD) As an ESD practitioner, I have been privy to many internal meetings, whereby the tactics relating to ESD elements are brainstormed, analysed and thereafter implemented. Organisations, in general, realise the inherent benefit that ESD strategies can offer in extending the broad based footprint …
In one of our very first posts we showed a video of Micheal Porter discussing the concept of Shared Value. This concept still resonates with us here at Collective Value Creation as it is the mechanism through which social change can be achieved in South Africa. In a recent presentation by Andrew Macleod he explains how procurement can be used as a vehicle for shared …
The South African marketplace is experiencing an increasing amount of companies that are delivering supplier development offerings. The decision around which supplier development company to use can often be overwhelming. Most ESD managers hope that that they will be able to outsource the development approach and be done with it. Unfortunately the opposite is true with regards to supplier development. In companies …
This satirical look at supply chain practices seeks to highlight some of the areas that the corporate world takes for granted, but can lead to devastating consequences. Have small suppliers been pestering you lately? Do you wish you could get rid of that troublesome entrepreneurial bunch? Employ just one of these 5 simple methods for destroying SMME suppliers and your …
Enterprise Development (ED) is the process of developing small or medium companies. This is however a very broad definition. In South Africa this definition differs from the rest of the world due to the intention of enterprise development. Let’s have a look at what this means in the South African context. Companies not Individuals Enterprise Development is different from other forms …
Even though Supplier Development in South Africa is relatively new to landscape, it has a rich international history. One of the benchmark companies that have made use of Supplier Development has been Toyota. This has led to such a level of success that companies across the world have made use of the practices in the Toyota Production System. These practices have mostly …
The DTI has a tough mandate. Broadly speaking they need to encourage economic growth and simultaneously transform the wealth disparity between black and white South Africans in the country. At this stage many have asked why BBBEE has not ended yet and unfortunately the answer lies in that progression around transformation has been slower than anticipated. Wybrand Ganzevoort, Lean Enterprise …
Have we overlooked the relate in supplier relationship management? Being privy to many interactions between buyers and suppliers I have come to realise that successful long term buying and selling relationships have a higher correlation with a management culture than any statistical measurement instrument or SLA. Over the years of sitting in various operational meetings between buying company representatives and that of the supplying company I have come to see how …
