The benefits of Enterprise and Supplier Development contributions

Enterprise and Supplier Development Insights Leave a Comment

WHAT VALUE DO YOUR ENTERPRISE AND SUPPLIER CONTRIBUTIONS HAVE? Most entities leave Enterprise and Supplier Development contributions until the last minute. The finance manager provides the transformation officer with the NPAT targets and they have to run with it. As a result, they likely haven’t put much thought into the benefits of these contributions. Hence, the question arises, what benefit …

Difference Between Enterprise and Supplier

The Difference Between Enterprise and Supplier Development

Enterprise and Supplier Development Insights 1 Comment

Many companies in South Africa are grappling with the question about what the difference between Enterprise Development and Supplier Development (ESD) is.  Has anything changed? Is the only difference really in when the development is applied, pre and post transaction?  Enterprise Development companies that have competed in the 3% NPAT space before are arguing that nothing has changed and that …

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Supplier Development in South Africa

Job Creation Guides Leave a Comment

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 …

The Supplier Development Decision Cost Matrix

Supplier Development Posts Leave a Comment

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 …

Corporate Sadist Humour

Small Business Development Satire for Corporate Sadists

Enterprise Development Guides 2 Comments

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 …

Supplier Relationship Management Guide and Tips

Supplier Development Posts Leave a Comment

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 …

Businesswoman Thinking

Tips for an ESD Practitioner and Entrepreneurs

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Many of my clients ask me about my learning as an ESD practitioner.  Below I have listed some of the top 5 tips for those in the field.  Working in the ESD space I have to constantly remind myself about these areas and get my mindset right.  If you find yourself in the role of an ESD practitioner then hang on …

ESD Value Chain Development

ESD Value Chain Development for Entrepreneurs

Enterprise and Supplier Development Insights Leave a Comment

Enterprise and Supplier Development can be defined as the development of sustainable small and medium black owned businesses in a companies value chain. In order to understand ESD (Enterprise and Supplier Development) you need to understand the linkages between Enterprise Development, Supplier Development and Preferential Procurement.  This article considers some of the background to these linkages and why the BBBEE …

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Supplier Development and Quality Assurance

Lean Enterprise and Supplier Development Guides 1 Comment

The original intention of the BBBEE codes was to link Enterprise Development to Preferential Procurement.  From a procurement point of view there was and is however a lot of risk associated with procuring from companies that require development.  By the time a procurement officer looks at any company in the stages of commercial adjudication all the boxes need to be …

Job Creation as part of Supplier Development

Supplier Development Posts Leave a Comment

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 …

The DNA of Lean Supplier Development for Entrepreneurs

Lean Enterprise and Supplier Development Guides Leave a Comment

With the shift in Enterprise development to Enterprise and Supplier Development many companies will now start considering Lean Supplier Development as a methodology to develop their suppliers.  See our post on Supplier Development in South Africa for more information on this. The Lean or continuous improvement movement is built around a major component which is the Plan-Do-Check-Adjust (PDCA) cycle.  This cycle has at …

Reactive or Strategic Supplier

Reactive or Strategic Supplier Development

ESD Planning Guides Leave a Comment

When considering Supplier Development as part of your ESD plan it is wise to consider the two different processes of supplier development as defined by Krause, Handfield and Scannel (1997).  The one process is reactive in nature while the other is strategic in nature.  The reactive process is what you focus on to assist companies to improve their performance.  Suppliers are struggling …

Supplier Development Program Function for Enterprises

Supplier Development Posts Leave a Comment

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 …