Enterprise and supplier development
As part of our commitment to achieving sustainable growth and having an impact on the wider community, we continue to promote enterprise development. Scaw is invested in and committed to the process of assisting small businesses to thrive as they are one of the key vehicles through which poverty alleviation and inequality can be tackled effectively in South Africa. During the year, we contributed a total of R3,85 million towards enterprise and supplier development programmes.
All of our enterprise and supplier development initiatives are aimed at ensuring that businesses become capable of supplying their products and services to Scaw and/or their larger markets. The aim is to help these entities become more agile and competitive to foster a strong likelihood of meaningful market share gain and sustainable job creation in the near future.
Our FY16 programmes included:
- Scaw employees providing human capital support to small, 51% black-owned enterprises
- Purchasing equipment for high-potential suppliers and external enterprises
- Sponsoring the incubation of high-potential suppliers and external enterprises
- Assisting outstanding suppliers and external enterprises in testing their products at Scaw and if proven effective and competitively priced, purchasing these products where feasible
Supporting localisation through supplier development
Scaw’s enterprise development programme provides opportunities for small organisations to participate in a meaningful development programme that could ultimately lead to them becoming a vendor. One such beneficiary is Torque Services. Scaw identified an opportunity to support a local supplier in developing a range of products that would enable the group to not only support a black women-owned company but foster localisation by eradicating the need to import these particular products.
Torque Services was permitted to conduct development work and trials at our site in order to achieve our desired levels of product specifications and standards. In addition, Scaw provided approximately R50 000 to procure equipment which assisted Torque Services in improving its research work and enabled the company to deliver to Scaw as well as other customers faster, thereby driving localisation. The equipment was used during the FY15 shutdown where the supplier conducted pressure testing on a gas and water pipe installation in Meltshop 1.
The support provided by Scaw, which will run over two to three years, has resulted in job creation, the development of local content and the expansion of a local supplier’s South African and international customer base. The programme has also helped Torque Services migrate from our enterprise development programme to being an approved vendor.
Scaw has seen a benefit in its pricing, while technical support from a local supplier has been appreciated at a plant level and we are proud to support an organisation that is local and on par with international suppliers. We are committed to supporting initiatives such as this that enable development of local suppliers and support our operations. In doing so, our enterprise and supplier development programme is designed to not only create value for our supply chain, but potentially the greater manufacturing industry in South Africa.
Torque Services is an engineering solutions provider specialising in providing the mechanical and electrical services to the petrochemical, power and energy, mining and industrial sectors. The company is based in Midrand, Gauteng. Owner/ CEO, Nosipho Mhlongo, is a chemical engineer with over 17 years’ industry experience. Her skills in operations and technical services, logistics planning and operations management were gained in the fast moving consumer goods and chemical and petrochemical industries.