Eskom Procurement Book 2015

SUPPLIER RELATIONSHIP MANAGEMENT

organisation is engaged in local procurement as well as the depth of its commitment. Three areas that can be included in the self-assessment process are: • Assessment of supporting structures, such as existing policies, alignment of programmes and the extent of available human resources. • Systems and processes that support local procurement programmes. • Development support for local small to medium enterprises. A questionnaire with a scoring system may be used for self-assessment. The questionnaire should be completed by senior managers, managers in the procurement department and end-users. This is because a commitment to local procurement requires personnel across various departments to work together collaboratively and to think creatively. At this stage, the basis for embarking on local procurement should be aligned to the organisation’s business objectives. Commonly, these reasons are known as the key business drivers. For instance, the primary motivation of some organisations may be to meet a legislative, government or contractual requirement. However, for other organisations, the reasons may be more strategic, such as to optimise local economic benefits through corporate social responsibility. When the rationale for local procurement is well articulated, it encourages innovation within the organisation. It also illustrates to personnel that this change in doing business is important for the success of the organisation. Table 5.3 illustrates the dimensions involved in some of the most common business drivers for local procurement programmes.

5.7.1.2 Determine the Rationale for Using Local Suppliers

Table 5.3: Key local procurement programme business drivers [24]. Local procurement programme drivers Benefits

Questions to consider

Government regulations or contract requirements

• Company is compliant with agreements, contracts and/or expectations. • Increased government support.

• Does the government require local procurement? • Is local procurement becoming an issue that the government may require of companies? • Do the tender documents require sub-contractors to use local businesses?

116 CHAPTER 5