The benefits of Enterprise and Supplier Development contributions

Zahn Abreu 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 do these contributions have for the organisation?

BENEFITS

First and foremost, ESD contributions result in an improved B-BBEE scorecard rating. Aim Enterprise development spend at beneficiaries who could in future form part of the supply chain rather than just a tick box approach. Supplier development beneficiaries are those who already form part of the supply chain. The best outcome would be to upskill and develop these suppliers in order to have an improved performance on the supply chain. This in turn will reduce the costs associated with lack of performance on the supply chain. Furthermore, a marked improvement of the supply chain will in turn result in fewer hiccups.

WHERE TO FROM HERE?

Firstly, organisations should not leave these contributions to the last minute. B-BBEE is not front of mind and this is therefore easier said than done. A project plan will likely guarantee that ESD contributions benefit the organisation. Certainly, and ESD partnership will ensure the success and sustainability of small business. Finally, the success of ESD projects is based on assessment, monitoring and evaluation. This above all else, will ensure lead to a quantifiable measurement of the operational and financial impact for the beneficiary.

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