A collaborative supply chain alignment and development platform

Maximising participation within local and global supply chains

2

• Competition is increasingly moving from a single company level to integrated supply

chains competing to industry-wide collaboration

• Although local demand may peak within the next number of years, we need to

ensure integration into global supply chains to maintain growth and sustainability

• We need to accelerate our ability to align, integrate and compete. This takes effort

from both the buyer and supplier organisations

• This programme is aimed at the total railway and harbour industries and provides a

simple platform to align the participants and drive ongoing development

The aim of this approach is to maximise local participation in local and

global supply chain opportunities

3

This is therefore a collaborative model which aligns the various stakeholders around a common development platform

Collaborative forum and IT platform• Buyer requirements,• Supplier capabilities,• Alignment of development support,• Managing financial investment risk and

performance • Tracking of development areas,• Accelerating competitiveness.

Suppliers Buyers

Development agencies

Financialinstitutions

Alignment

Suppliers Buyers

Development agencies

Financialinstitutions

Suppliers Buyers

Development agencies

Financial support

organisations

Alignment

4

The programme cascades through the supply chains with organisations

acting simultaneously as both buyers and suppliers

Buyer

Tier 1 Suppliers(i.e., OEMs, System Integrators)

Tier 2 Suppliers (i.e., System or Subsystem Assemblers)

Tier 3 Suppliers (i.e., Component Manufactures)

Tier 3 Suppliers (i.e., Other Input Industries

Buyers Sphere of Control

Buyers Sphere of Influence

Procurement teams embed local procurement requirements in RFx and contract negotiation process

Procurement teams identify ED opportunities and advise on available partners

Focus of Procurement TeamsTypical Supply Chain Structure

Confidential and Proprietary Information 5

PE

RF

OR

MA

NC

E

Stage: 5World Class

Stage 1:Minimal

Stage 2:Basics

Stage 3:Competent

Stage: 4Advanced

Stage 0:Innocence

The evaluation benchmarks organisations in terms of the typical migration path

towards world-class performance

It therefore ensures the appropriate building blocks are in place and to accelerate the development of a company, or

the total industry as a whole, towards world-class performance

Typical migration path towards world-class

performance

Confidential and Proprietary Information 6

Financial Performance• Cost management• Productivity• Financial StabilityCustomer Performance• Product Quality• Service Quality• Customer responsiveness

Internal Processes• Operations Management• Supply Chain Management• Information Management• Corporate GovernanceLearning and Growth• Leadership • Human Capital Management• Safety and Health• Environmental Management

Bu

ild

ing

Blo

cks

Ou

tpu

t A

reas

Broad-Based BEE contribution: 9 8 7 6 5 4 3 2 1

Companies are therefore benchmarked against world-class

competitiveness across a number of key performance areas1 2 3 4 5

Confidential and Proprietary Information 7

It provides a detailed view of how the company rates against buyer, or

other, expectations and the means to address performance gaps

Financial Performance• Cost management• Productivity• Financial StabilityCustomer Performance• Product Quality• Service Quality• Customer responsiveness

Internal Processes• Operations Management• Supply Chain Management• Information Management• Corporate GovernanceLearning and Growth• Leadership • Human Capital Management• Safety and Health• Environmental Management

Bu

ild

ing

Blo

cks

Ou

tpu

t A

reas

Exceed buyer expectationsBelow Expectations Exceed ExpectationsBelow Expectations

Confidential and Proprietary Information 8

The intelligence within the database provides us with the ability to drive growth and development across the industry

Individual company level (Micro Level)Monitoring and development on an individual company level

Supply chain viewAs a comprehensive vendor management solution across the total supply chain

As an industry development solutionMonitoring and development of all the companies who belong to a specific industry

As an economic development solution (Macro Level)As a means to monitor and intervene on a collaborative basis across the economy

This is a simple, yet comprehensive solution which provides a common base for the various stakeholders to collaborate

9

Participating buyers can use the programme to increase supplier

performance and achieve local development objectives

How we deliver this?

• Provide buyers with information engage with appropriate supply chain partners

• Identify local suppliers who can supply competitive goods for local and global contracts

• Identify areas in their supply chain to spend their firm’s enterprise development funds and hence ensure that the funds are spent in areas beneficial to the buyer’s organisation

•Monitor and track their suppliers implementation of improvement plans

• Providing greater visibility of the quality of immediate supplier market as well as supplier’s supplier market

• Funds spent on developing qualifying suppliers can be used to claim enterprise development points

Value Proposition to Buyers

Achieving local procurement and

development goals whilst enhancing the

management of supply chain partners

10

Participating suppliers can use the programme to achieve sustainable

growth and participate in local and global supply chains

How we deliver this?

• Provides a collaborative framework to work with buyers and other supply chain partners

• Provide suppliers with a view of the aggregated demand from participating buyers

• Enable suppliers to benchmark their operations against the requirements of buyers and hence set market related targets for improvement programmes

• Enable suppliers to benchmark their operations against international standards

• Provide suppliers with access to local and international experts to help them define and implement improvement programmes

• Provide suppliers an opportunity to benchmark their own supplier base and hence strengthen their own supplier base and enhance their BEE rating.

Value Proposition to Suppliers

Sustainable growth through supply chain

alignment and competitive

improvement

11

The Benchmarking and Supplier Development Process

Supplier Benchmarking and Development Process

Identify focus areas for local procurement

1Buyers capture requirements

(assisted by UNIDO)

2 Do any local suppliers meet

buyer requirements?

Possible shortlisting for participation in

buyer’s supply chain

7

Buyers

Invite all potential suppliers to participate

3

UNIDO

Assisted self assessments

Develop improvement plan

Implement improvement plan

Suppliers

Inputs• Benchmarking information• Comparative country strengths• Other industry studies • Supplier Development Plans

UNIDO facilitates access to govt./buyer/donor supplier development programmes

4 5 6

Improvement Cycle

Ongoing improvement cycle

12

Next steps

Capture basic who’s who company info on the system to participate

• Capture info on www.benchmark2grow.org or phone the help- desk on 012 394 5537

• You can also simply complete the form and we will capture it• Receive password to access the full system within a few days

Train internal champions within buyer/supplier

organisations

• A two-day training course aimed at senior executives who drive competitiveness improvement and growth

• The cost of the training will initially be sponsored

Deploy the initiative in-house

• Supplier organisations conduct a self-assessment and use the platform to drive internal performance

• Buyer organisations capture their procurement opportunities• Note that most organisations play both buyer/supplier roles

Share information and collaborate

• Share contract info and look at the readiness and preparation required to absorb these opportunities

• Seek further growth opportunities in global supply chains on a similar basis