Eskom Procurement Book 2015

SUPPLIER RELATIONSHIP MANAGEMENT

Local procurement programme drivers

Benefits

Questions to consider

Competitive advantage

• Demonstrates the company’s ability to deliver economic development through its incorporation of local businesses in the supply chain. • Leads to access to new concessions or clients and increased likelihood of winning new government concessions as a result of government contracts. • Builds local support through an activity that can provide continuing opportunities for SMMEs. • Creates a partnership between the company and communities. • Improves ease of operations (such as access to roads). • Visibly delivers local benefits or impact. • Reduction of carbon footprint. • Reduction in energy costs.

• Are competitors working with local suppliers? • What are the advantages in demonstrating success at local procurement to win future concessions?

Social licence to operate

• What is stakeholder perception and expectation of the company? • How frequent are work stoppages? • How frequently and where have protests occurred? • What are the costs of these protests? • What is the environmental footprint of the supply chain? • What is the cost? • What part of the supply chain can be localised and what would the impact be?

Energy and environment

117 CHAPTER 5