134 / 252
122
CHAPTER 5
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.).
Programme
objective
• Mission statement/objectives: Specific, Measurable,
Achievable, Relevant, Time-bound (SMART) strategy.
• Link to business drivers and target groups.
Rationale
• 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.
Programme
design
• 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.
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.