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CHAPTER 5
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.
• Are competitors working
with local suppliers?
• What are the advantages
in demonstrating success
at local procurement to
win future concessions?
Social licence to
operate
• 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.
• 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?
Energy and
environment
• Reduction of carbon
footprint.
• Reduction in energy
costs.
• 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?