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​SUPPLY DEVELOPMENT

Overview

The Supplier Development (SD) Programme is an initiative of the Department of Public Enterprises (DPE) supported by Transnet.

The aim of SD is to increase the competitiveness, capacity and capability of the South African supply base where there are comparative advantages and potential competitive advantages of local or regional supply. This can be achieved through skills transfer, increasing the local content of items procured, as well as building new capability in the local supplier base. In addition, SD has its roots grounded firmly around the transformation of South Africa and the empowerment of previously disadvantaged individuals and enterprises.

The New Growth Path (NGP) aims to enhance growth, employment creation and equity by reducing the dependencies of South African \ industries on imports, and promoting the development of skills and capabilities that are in short supply within the country

Transnet's SD is closely aligned to the NGP objectives and as a result is able to fulfil its commitment to sustainability within South Africa whilst at the same time addressing other corporate objectives, including increasing productivity and efficiency, volume growth, capital investment, financial stability, funding, human capital, SHEQ regulatory compliance and improving customer service.

The combined objectives of Transnet and Government can be realised through:

  • Aggressively implementing capital investment plans which will result in competitive local industries;

  • Improving operational efficiency;

  • Using procurement to influence the development of the local supplier industry; and

  • Ensuring it creates sufficient opportunities for the participation of previously disadvantaged groups in the economy.

Supply Management's objectives:

To aid its implementation of SD, Transnet has adapted an existing framework from the DPE. This framework allows for a basic set of principles to be applied to appropriately target SD initiatives. Supplier Development initiatives aim to assist local suppliers in developing their competitive advantage through increasing their capability and capacity potential . Hence the framework has been termed the Increased Competitiveness, Capability and Capacity (IC3) Supplier Development Classification Matrix.

This framework encapsulates the types of SD opportunities which Transnet currently considers effective and allows Transnet to move its SD structure away from a dynamic policy environment towards a framework that is designed around general Supplier Development objectives. This enables Transnet to adopt a standard structure but also allows the flexibility to reconsider emphasis on certain aspects as objectives change.

 

BBBEE Guidelines

Transnet Engineering has affirmed its support for the RDP by committing itself to affirmative procurement since 1994. Black Economic Empowerment (BEE) was integrated with the tender rules and procurement policies to assist historically disadvantaged communities (HDC) and to empower Transnet Engineering`s managers to effect affirmative procurement without compromising specifications, safety and standards.

BBBEE Enquiries

Suppliers and contractors can seek assistance with regard to BBBEE issues from Transnet Engineering`s BBBEE Manager.

Manager.
Tender documents also indicate names and telephone numbers of contact persons who can be contacted regarding any uncertainties which may arise while completing the tender documents.

Tshenani Oscar Nepfumbada
Telephone: +27 (0)12 749 1524

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