Differentiation in Supplier Development

Supplier Differentiation Necessity for Enterprise Development

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Ask any procurement manager what the first thing is that she looks for when making a purchasing decision and you will hear the words ‘ differentiation ’.  Procurement is looking for a supplier that is good at one specific thing.   This is in line with decades of procurement practices.  The nature of procurement is such that procurement managers like categorising …

Five Cs of Supplier Development Risk

Managing the Five C’s of Supplier Development Risk

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With all the discussion about Enterprise and Supplier Development Risk, many in South Africa have missed one of the biggest areas that will soon be affecting their BBBEE score.  BBBEE in South Africa is driven through the procurement process.  In this process most of the discussion in the past was around a company’s BBBEE Level Status.  In the amended codes …

Local Supplier Development Tool for Self-Assessment

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A tool for managing change Many companies believe BBBEE is unique.  BBBEE is indeed unique in various aspects but the process of Black Empowerment & Localisation is not unique.  Various international companies have sought to increase local purchasing and as a result also develop suppliers. Our  Local Supplier Development Tool is here to change all that. The International Finance Corporation has (some time ago) …

The Ambidextrous Nature of ESD

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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 …

Supplier Development Metrics for Entrepreneurs

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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 …

The Supplier Development Decision Cost Matrix

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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 …

Supplier Development in South Africa for Enterprises

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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 …

Supplier Relationship Management Guide and Tips

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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 …

Job Creation as part of Supplier Development

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During a recent tender to a government institution I was faced with the question of job creation as part of supplier development.  The tender was asking me how many new jobs our company would be creating if I were to win the tender.  This made me think of the way in which companies account for job creation. Based on the requirements …

Social Sustainability Conversations for Enterprises

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With the change in the codes from Enterprise to Supplier Development the Supply Department now becomes much more engaged around issues such as social sustainability. In a recent blog by Gregory Unruh from MIT Sloan (http://sloanreview.mit.edu/article/sustainability-dialects/)  he discuses how sustainability thinking can be introduced to organisations through selective conversations.  In doing this however sustainability practitioners need to understand what the major …

Supplier Development Program Function for Enterprises

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Supplier development programs can be arranged into two broad dimensions: The one dimension concerns itself with the type of continuous improvement that the supplier develops while the other concerns itself with the scope at which this continuous improvement occurs (Sako, M.; Supplier Development at Honda, Nissan and Toyota: Comparative Case Studies of Organizational Capability Enhancement; 2002). Let’s use an example …