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South African Airways: Enterprise Supplier Development
Posted by Daniel Makhura on 17 May 2017 7:35 AM SAST
Information about how it works.
Enterprise and Supplier Development (“ESD”) means monetary and non-monetary contributions carried out to beneficiaries, with the objective of contributing to the development, sustainability and financial and operational independence of those beneficiaries.
SAA utilises its supplier database as one of the vehicles to achieve the development objectives. SAA provides engagement sessions and exposure to SMEs through hosting Supplier Summits, at this sessions commodity managers engage with prospective suppliers on procurement process, common mistakes by SMMEs when tendering and showcase some of the products they procure to keep the airline operational. SAA provides training/ workshops to suppliers on tender- procurement process and tips on how to submit acceptable tender documents. Where feasible and viable, SAA is setting out to unbundle its big contracts to allow and increase participation of SMMEs, encouraging its Large Enterprise and Qualifying Small Enterprises (QSEs) to subcontract with SMMEs. The key element of supporting SMMEs is that the airline pays small business suppliers within fifteen days of receiving required mandatory documentation. SAA provides rent free space for SMMEs that secured a tenders with SAA and whose services are required onsite (for example, office space and storage facilities) SAA is currently finalising the development of its ESD programme. This proposed programme has been developed taking into cognisance SAA’s loss making situation.The collaborative initiative will include but not limited to development finance institutions and business development agencies. The latter would conduct business diagnosis and render business support services, in certain instances. It is envisaged that this network of partners would be carefully grown over time to address the evolving execution requirements of SAA’s ESD programme and in line with the airline’s implementation capabilities. - The programme will be advertised on the SAA website.
