Eskom Procurement Book 2015

SUPPLIER RELATIONSHIP MANAGEMENT

Component

Description

Country and regional context

• The relevant historical, social, economic and political context, including poverty indices in relation to company operations. • A socioeconomic overview of the project-affected area. Check the country’s ‘Doing business’ rating. • The composition of the entrepreneurial sector, especially SMMEs. Include the company’s existing supply chain as well as relevant local communities. • Analysis of the business environment: major needs of SMMEs vis-à-vis access to business and technical skills, access to finance and access to markets. • The institutional environment: Business Membership Organisations (BMOs) like business associations and chambers of commerce; the overall commercial environment (legal and regulatory requirements, corruption, entrepreneurship culture, infrastructure, etc.). • Mission statement/objectives: Specific, Measurable, Achievable, Relevant, Time-bound (SMART) strategy. • Link to business drivers and target groups. • Business case: risk mitigation, cost benefits, alignment with the company’s business drivers, etc. • Sustainability case: development impact, sustainability proposals, fit with CSR strategy. Role of partners in adding value and sustainability to programme. • Preparation; governance structure; steering committee; reporting lines (programme management structure); design of programme reports. • Assessment and screening; review of company purchasing needs. • Select sectors for localisation; SMME mapping; SMME evaluation; creation of communication plan; preparation for training of SMMEs. • Training and mentoring. • Monitoring and evaluation.

Programme objective

Rationale

Programme design

Budget • Create a comprehensive budget including fixed and variable costs. Consider innovative ways to recover and share costs with implementing partners and SMMEs. Financing plan • Develop a plan to finance local supplier activities. Programme period and coverage • Determine how long the programme will last. • Determine geographic area.

122 CHAPTER 5