Our supply chain

Scaw’s supply chain team is responsible for the flow of materials and services across the group applying the “total cost of ownership concept” in driving efficiencies to benefit the bottom line.

The team is driven by the ethos of “deliver more, together” by supporting localisation, supplier and enterprise development while ensuring consistent quality and the highest safety standards. During the year, there were significant changes to our supply chain to align itself with an increasing competitive environment. Our supply chain team applied a strategic sourcing approach to deliver maximum value to our organisation to reduce input costs and create value to our supply chain. This included maintaining focus on value delivery, contract coverage, supplier relationship management, preferential procurement, enterprise development, supplier development and stakeholder engagement to achieve our key performance indicators. Scaw reinforced its commitment to governance and ethical standards during the year by reviewing and implementing updates to our policies and procedures.

Supply chain’s responsibilities are split into three main sections: procurement*; logistics** and enablement.

* During the year, our procurement team allocated R4,0 billion (FY15: R4,8 billion) of discretionary spend among 2 800 suppliers for approximately 68 500 orders.
** Our warehouse teams are responsible for approximately 21 000 stock-keeping units, providing 24/7 service to internal customers.


Scaw group supply chain management

Procurement

Strategic sourcing

  • Sourcing and contract management of strategic categories
  • Strategic supplier performance management

Transactional procurement

  • SAP transactional processes (requisitions, orders and expediting)
  • Spot sourcing
  • Low-value (tactical) contract management

Warehouse and inventory management

Inventory management

  • (Inbound) inventory management and control
  • MRP management
  • Cataloguing

Warehouse management

  • Manage receiving, binning, safe storage, issuing and returns
  • Quality assurance

Enablement

Enablement support

  • Policies, processes and procedures
  • Reporting
  • Supplier adoption and contract administration
  • Systems and tools

561

R731 million

EMEs and QSEs active in Scaw's supply chain spend with 561 EMEs and QSEs