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Value Chain Support

Enterprise and Supplier Development Support

Get Enterprise and Supplier Development (ESD) right with our tried and tested best practice solutions which will not only benefit your Broad-Based Black Economic Empowerment (BEE) scorecard but will also impact your organisation by increasing the quality of your products or improve your service delivery while lowering procurement costs

A pro-active ESD plan can give companies a competitive advantage as it can not only reduce costs but also reduce the risk of non-compliance and thus adding value and growth to the overall business.

It is therefore prudent that large corporates deliberately align their ESD and procurement strategies with the broader economic goal of transformation by investing time and effort into optimizing and streamlining their procurement spend and the underlying policies and systems.

With a vast network of partners, we are positioned to meet your enterprise and supplier business requirements in every way including:

  • source potential suppliers to fit into your clients’ supplier chain
  • conduct a due diligence on these suppliers or;
  • advise on and to match qualifying suppliers who will satisfy your clients’ business needs and at the same time synergize with the client’s transformation strategy.

Understanding ESD

The Enterprise and Supplier Development (ESD) course is mutually beneficial to both your organisation and your suppliers. It aims to lower procurement costs, increase the quality of a product, improve service delivery and positively impact the scorecard. Improving the ESD scorecard by socialising small Black-owned suppliers into the company supplier base and developing the relevant training programmes for such suppliers.

Supporting the growth of sustainable small, medium and micro-enterprises and real transformation of the procurement supplier base.

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Who benefits

At the end of the analysis, the outcomes will be supported by a comprehensive report that can be used by:

  1. You as the corporate sponsor – to assess whether the start-up is a viable investment
  2. The start-up – a detailed assessment of risks and opportunities to guide the strategy implementation

The Transcend ESD Toolkit

The Transcend ESD Toolkit provides an analysis of your current procurement practices. Our services include sourcing of ESD opportunities within your pool of Black-owned suppliers.  This engagement process provides clear guidelines and principles to these entrepreneurs on the weaknesses and gaps in their businesses and results in the implementation of a project plan that directly addresses and eliminates these gaps.

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The Approach Comprises The Following Phases:

Phase 1 - "As-Is" Analysis
  • Workshops with stakeholders for understanding the fundamentals of ESD
  • Analysis of current ESD status quo
  • Short listing of ESD needs

“As-Is” Review Against Revised Codes of Good Practice (RCoGP)

The initial in-house one-on-one dialogue with the procurement / Enterprise Supplier Development (ESD) champion(s) aims to equip the teams that will drive procurement transformation, and will cover the following three broad areas:

  • ESD training through a workshop that aims to empower the procurement team with an understanding of the ESD scorecard, measurement criteria as well as insight into ESD best practice
  • Current procurement spend analysis as a benchmark for developing an ESD strategy
  • A report would be offered that shows the weaknesses in the current data systems and changes required to the data fields to easily be able to report on your ESD process on an on-going basis.

Our due diligence encompasses a robust analysis on the following:

  • Financial health of the start-up
  • Compliance Checks
  • Start-up business plan analysis
  • Analysis of operation processes, strategy and capacity of the start up
Phase 2 - Strategy
  • Building A Comprehensive ESD Strategy

    • Localisation Plan Outline
    • Supplier Development Plan
    • Supplier base transformation strategy

    The ESD strategy will focus on five broad areas to achieving transformation under the ESD pillar:

    1. Supplier base transformation strategy
    2. Group linkages strategy
    3. Spend segmentation analysis
    4. Localisation plan
    5. Supplier development plan

    This information emphasizes the need to conduct due diligence on potential enterprise supplier development beneficiaries.

Phase 3 - Implementation

This stage focusses on the implementation of the plan surfaced in Phase 2 above. All through the journey of change, our specialist consultants provide expert guidance to manage conversations and socialise the transformation journey into the life of the business.

Through our experience in the global benchmarking of democracies in transition, Transcend has established that for our country to transform it is vital that the procurement profiles of corporate South Africa must change and create potentially beneficial space for new Black-owned and small suppliers to thrive.

All investment into this initiative will contribute towards your ESD score.
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