Eskom Procurement Book 2015

SUPPLIER RELATIONSHIP MANAGEMENT

Component Develop programme organisation

Description

• Design a chart (or higher-level organogram) with programme components (and respective programme partners for each component, if identified). • Clear lines of reporting. • Steering committee: Members, meetings, chairperson, compensation. • Total number of staff involved and their roles. • Staff responsible for implementation; their roles and responsibilities, e.g., procurement department, communications team, external affairs team, community development team. • External partners and their roles and responsibilities. • Develop a table showing key activities, timeline, deliverables and key persons responsible. • Determine the metrics that will be used to evaluate programme’s success. • Define the reporting requirements (including timeline, documents and individuals involved). • Assess options for aligning programme results with staff performance (incentives). • Determine challenges that exist externally and internally, based on company self-diagnostic assessment. • Outline possible solutions. • Determine possible risks, e.g., dependency on outside parties, reputational risks, environmental and social risks. • Outline risk mitigation strategies. • Access to finance. • Capacity building. • Gender. • Marginalised groups.

Determine staffing plans

Identify partners

Identify cross- cutting needs

Create work plan

Monitoring and evaluation

Challenges/ risks

Risks

5.7.1.6 Benefits and Challenges of Using Local Suppliers

Purchasing goods from local suppliers has benefits that make it attractive and challenges that make it difficult to implement. However, the use of competent supply management professionals who are able to assess the merits and drawbacks of using a particular local supplier will go a long way to cultivate appropriate sourcing decisions. Promoting the use of local suppliers can boost the organisation’s public relations. This is particularly true if the organisation is a large employer in an area and has made huge investments in the local community. Using local suppliers reduces the costs associated with procurement by eliminating customs duties and other

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