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Prepared by: Francois Naudé For: South Africa SMME Conference Date: 19 October 2006

Access to business opportunities – a stimulant growth Introduction to the seda National Procurement Programme. Prepared by: Francois Naudé For: South Africa SMME Conference Date: 19 October 2006. A TSS Group Company. Background.

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Prepared by: Francois Naudé For: South Africa SMME Conference Date: 19 October 2006

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  1. Access to business opportunities – a stimulant growth Introduction to the seda National Procurement Programme Prepared by: Francois Naudé For:South Africa SMME Conference Date: 19 October 2006 A TSS Group Company

  2. Background • Developing the base of suppliers contributes to an increasingly successful society • Access to opportunities – one of key pillars of enterprise development • The ability of large procurement budgets to influence this process is generally accepted but not implemented

  3. Challenges • Incoherent approach to solutions • Fragmented initiatives to address on problem • Hesitation to engage emerging business due to complexities • Large opportunities published - little opportunity for emerging business sector • Inefficiencies • Emerging businesses often not geared for requirements • Lack of capacity and quality • Greed • Traditional/larger business attempt to tap into social responsibility initiatives • Responsibility definition • Not the role of SC operatives to develop economy • Make it easy for them to play this role

  4. Information • Standardise registration & accreditation • Regular maintenance of information • Guide the formalisation of business • Capacity building Automation • Integrate supplier profiles into decision making • Track progress against targets • Supplier feedback Financial Support • Shorter payment cycles • Trade Finance Value levers

  5. History of collaboration Model for success in inter-governmental collaboration: • Partners: • Ntsika • Namac • RED Door • Tender Club • Challenges • Little/No knowledge about potential suppliers • Lack of infrastructure • Personnel turnaround • Complex searches vs targeted filtering

  6. seda National Procurement Programme A TSS Group Company

  7. Objectives • Increased participation of small enterprises in tendering and supplying the public and private sectors with competitive goods and services • Increased opportunities on the system with a view to serve a large number of small enterprises.

  8. Scope • 34 Seda Branches • 1 000 Suppliers • Supplier Registration • Supplier List • Verified Supplier Database • RFQ & Quotation transactions • Tender Notification

  9. Tender Bulletin

  10. RFQ Transactions

  11. seda Supplier Database

  12. Critical mass • Current Volumes: • Average 2 666 RFQ’s per supplier p.a. • Average 1 248 Tender Notification’s per supplier p.a. • Focus on smaller transactions • Collaborate with Seda to bring more buyers to contribute RFQ’s to platform

  13. Status Ready to pull the trigger: • National Procurement Portal developed • Training of seda branch network in progress • Integrated into a number of large procurement organisations • Launched at NMB BEE Expo earlier this month • Registration of suppliers taking place as we speak • Supplier training • Increase procurement opportunities processed

  14. ? ? Any Questions …

  15. Implementation • Content is key • Complete supplier registrations/accreditation • Share supplier information • Adoption of procurement technology • Adopt procurement best practice • Integrate content with technology • Set indicators & targets • Measure and adjust • This should ensure the participation of smaller enterprises – driving the broad base

  16. Develop Transact Explore Discover Supplier interaction Suppliers can migrate up the path from initial discovery to collaborative planning and development. 10’s 100’s 1 000’s 10 000’s Supplier Base

  17. Develop Transact Explore Discover Inverse relationship The various levels of supplier interaction shows an inverse relationship between the number of suppliers at each level and the richness of functionality and data required. Measurement Feedback Communication Automation Interrogation Search Functional requirements & Information depth Supplier Base

  18. Develop Transact Explore Discover Data store The ERP vendor master is not the best place to store all supplier information. Segmenting the supplier base allows for the right functionality and depth of information for the level of the relationship. 10’s 100’s 1 000’s 10 000’s Supplier Base

  19. Shared Supplier Database Model for success in inter-governmental collaboration: • Partners: • Western Cape Provincial Government; • Western Cape Parliament; • City of Cape Town; and • Boland District Municipality. • PPECB • WC Gambling & Racing Board • Shorten registration process • Save on taxpayer expense • Acceptance from suppliers • Close interaction with Red Door centres

  20. Future initiatives The base has been established. Next steps need to take it to another level: • BBBEE Balanced scorecard to be used to measure progress in optimising BEE; • Further consolidation of supplier databases; • Payment mechanisms to support SMME interaction; • Supplier development automation.

  21. ? Any Questions …

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