Supplier Development

Supplier development is the process of working with certain suppliers on a one-to-one basis to improve their performance for the benefit of the buying organisation. It is closely associated with supplier relationship management and partnering.

What is the difference between Supplier Development and Enterprise Development?

Supplier Development is the suppliers that are already a part of your supply chain and Enterprise Development is the Suppliers that wants to be a part of your supply chain.

SDF CORP COMMODITIES

2014/180612/07

The Problem

If your current suppliers have a bad BEE status and you buy from them then your BEE status will be affected negatively. In the long run this might cause you to lose business and by the time you realise this, it will be too late. Losing 10 points on your scorecard because of bad suppliers (BEE non-compliant) can have devastating effects for your BEE status.

The Solution

If your current supplier’s turnover is over R10M then you need to encourage them to follow the process of being BEE compliant. If not, you might have to consider changing suppliers. To remain a successful business, you will have to build a supply chain with suppliers that are BEE compliant.

SDF Corp Commodities

We believe that the business environment is changing. Innovative leaders will be future orientated and anticipate change. The secret to success is to adapt with change.

  • Phase 1

    Determine how many of your current suppliers are non-compliant for BEE.

  • Phase 2

    Determine the amount of money you spend on non-compliant BEE suppliers and to what degree does it affect your scorecard negatively.

  • Phase 3

    Identify the risk management factor. Is it better to keep spending on non-compliant suppliers or can you afford to lose market share in the future?

  • Phase 4

    Encourage your suppliers to work with you to be BEE compliant or change your suppliers.

  • Summary

    Sometimes businesses fail not because of what they did, but rather what they didn’t do! Start planning today!