Supplier diversity as a business strategy to enhance competitiveness and long-term sustainability

Transcription

1 Enterprise and Supplier Development (ESD) Supplier diversity as a business strategy to enhance competitiveness and long-term sustainability Transnet Group Chief Supply Chain Officer Edward Thomas Linking Economies. Connecting People. Growing Africa.

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3 Transnet is the custodian of South Africa s rail, ports and pipelines Rail Ports Pipelines Supporting Transnet Freight Rail (TFR) Transnet Engineering (TE) Transnet National Ports Authority (TNPA) Transnet Port Terminals (TPT) Transnet Pipelines (TPL) Transnet Group Capital Transnet Foundation Transnet Property km of railway track. General freight & 2 heavy haul export lines Volumes: 219,1 mt employees Support TFR for rolling stock and TPT for lifting-equipment maintenance OEM wagon manufacturer Trans-Africa Locomotive 8 Commercial ports along km of coastline Volumes: (000 TEUs) 16 Cargo Terminals operating across 7 SA ports Volumes: (000 TEUs) employees km of pipelines, Volumes: (Ml) 686 employees Invested R145 billion on MDS initiatives over past five years and will invest further R229,2 billion. Property Management 2

4 Executive Summary: Introduction to integrated Enterprise and Supplier Development (iesd) Transnet continues to drive growth through the expansion and modernisation of the country s ports, rail and pipelines infrastructure, and contribute to the quality of life for all South Africans by proactively enabling the broader objects of the National Development Plan (NDP). Accordingly, Transnet realizes the importance of spreading economic growth and transformation in the South African economy and support the Government programme that seeks to redress the imbalances of the past. Transnet Enterprise and Supplier Development ( ESD ) is a key element of South Africa s developmental agenda contained within the dti revised B-BBEE Codes of Good Practise ( the Codes ) This Priority element combines the targeted activity and measurement of Preferential Procurement, Supplier Development and Enterprise Development. Transnet ESD purpose aims to increase the competitiveness, capability and capacity of Black Owned Suppliers through financial and non financial support. Transnet is also required to fulfil its obligations as a SOC to the DPE Competitive Supplier Development Programme (CSDP) and to the Industrialisation strategy for South Africa to achieve economic growth and transformation. 3

5 ESD: Types of ESD initiatives As an emerging country, South Africa boasts more than 5.6-million small, medium-sized and microenterprises (SMMEs). Enterprise and supplier development: tools for poverty alleviation In future, large enterprises will need to restructure and many will downsize - SMMEs will play an increasingly important role in South Africa s economy and development. Transnet acknowledges the importance of spreading economic growth and transformation in South Africa and supports Government programmes to redress past imbalances. Financial and non-financial support Mentorship and business skills training. Grants and loan. Investment in beneficiary entities. Providing seed capital, or access to capital Early and/or timely payments for goods supplied. Infrastructure support to suppliers and other entities in the same area or community. Support by providing labour-intensive production and construction methods. Investment and support to enterprises operating in rural communities. 4 Source: Tradeeconomics.com I Statistics South Africa

6 ESD: The challenges and opportunities facing SMMEs Only those who innovate will survive and thrive Challenges facing SMMEs Large companies exposed to digital trends and ICT are better positioned for survival than smaller companies. Small companies could be inexperienced and unfamiliar with emerging 4th Industrial Revolution trends. Prevented from standing alone due to: Lack of technical skills. Lack technological foundation & outdated technology Lack infrastructure Difficulty accessing credit Opportunities for SMMEs Agility, speed to adapt due to small size no red tape Can attach/detach to project networks for mutual value. Coaggregation SMMEs coown larger enterprise for mutual value Lager enterprise. Access to free/inexpensive Internet-based tools and templates reducing need for financial capital. 5

7 ESD: Transnet s impact on economic development Transnet Black Umbrellas 9

8 ESD: Transnet s impact on economic development Project : Transnet SABS Innovation Programme Support : Non Financial Sector : Innovation Target Market : Potential Black Owned Suppliers of Transnet Duration: Investment value: R85 million United Industrial Cables Manufacturer of electric wires and cables. Identified as one of the 20 Black Industrialists. Dti funding: R46 million Siemens has shown interest to procure from UIC. Prospective jobs: 50 10

9 ESD: Transnet s impact on economic development Project : Transnet SABS Innovation Programme Support : Non Financial Sector : Innovation Target Market : Potential Black Owned Suppliers of Transnet Duration: Investment value: R85 million Petrolink Supplier of Lubricants for both the Automotive and Industrial sector. Employs a certified Society of Tribology Lubrication Engineer to develop Petrolink s formulations. An agent of specialty chemicals from King Industries. Customers include Air Traffic Navigation Services and Energy Depot. First Distributor in Gauteng: NDM Lubricants & Spares (supplied first order). First Distributor in Mpumalanga: MKG Oil (supplied first order. 11

10 SD: Transnet s contribution to economic development GPT Infra-projects: Sleeper manufacturer Reelin Investments: Bearings, transmission products Rail 2 Rail: Sleeper manufacturer Women in Africa Naledi Inhlanganiso: 34 Inch wheels Scaw Metals: 34 Inch wheels Siyahamba: Doors, pipework, windows and windscreens 12

11 SD: Transnet s impact on economic development Women of Africa Women of Africa Women in Logistics Women in Property Women in Fuels & oil Women in Investment Mining Facilities Services Women in Motor industry Warehousing Road Rail Property management Construction & Property development Technology Security Engineering 13

12 SD: Transnet s impact on economic development Rail 2 rail Reelin 14

13 ESD: Integrated ESD/CSI strategy New ESD/CSI integration strategy Transnet ESD Eco-system and the journey of an entrepreneur to a Black Industrialist Transnet mega hubs Revenue sharing model Commodity specific ESD programmes 15

14 Thank you Digital United Admired Agile