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CHAPTER 5

SUPPLIER RELATIONSHIP MANAGEMENT

Component

Description

Develop

programme

organisation

• 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.

Determine

staffing plans

• 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.

Identify

partners

• External partners and their roles and responsibilities.

Identify cross-

cutting needs

• Access to finance.

• Capacity building.

• Gender.

• Marginalised groups.

Create work

plan

• Develop a table showing key activities, timeline,

deliverables and key persons responsible.

Monitoring and

evaluation

• 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).

Challenges/

risks

• Determine challenges that exist externally and internally,

based on company self-diagnostic assessment.

• Outline possible solutions.

Risks

• Determine possible risks, e.g., dependency on outside

parties, reputational risks, environmental and social

risks.

• Outline risk mitigation strategies.

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