What is Supplier Development
Supplier Development is the development of small businesses so that they can become sustainable supplier to large businesses. Supplier Development has been used as an economic growth mechanism in all developing economies and the South African economy is no exception.
The LEAN methodology requires supplier development and value chain optimization. MEDO has experience and qualified practitioners in these disciplines and can implement in a local context to ensure the maximum impact and economic growth.
Is Supplier Development different from Enterprise Development?
Yes, it is different in that we need to ensure access to markets (opportunities) as well as supplier sustainability. The entrepreneurs need to operate with all their corporate governance in place and be able to scale their output to match the requirements of the buyers. Enterprise Development beneficiaries will sell to individuals and other small businesses, while Supplier Development beneficiaries sell to large businesses and the public sector which requires a far higher level of professionalism and operations management understanding.
A beneficiary is an Emerging Micro Enterprise (“EME”) or a “Qualifying Small Enterprise (“QSE) with at least 51% black ownership, that is either currently a supplier or can become a supplier to the sponsoring entity.
An EME has a turnover of less than R10million per annum, and a QSE a turnover of between R10million and R50million per annum.
What value can Supplier Development add to my business?
Through Supplier Development we grow the local economy, creating a larger pool of value-adding suppliers.
Building relationships with suppliers and assisting them to optimize their businesses makes good sense, and is the foundation of the LEAN methodology. Markets are becoming increasingly commoditized thereby restricting price increases. In such environments value can be unlocked through value chain optimization and the application of LEAN concepts.
MEDO has a pool of potential suppliers that can be introduced to opportunities.
The codes of good practice recommend that Supplier Development programmes are implemented and MEDO has implemented many programmes customized for large businesses.
What can MEDO offer?
MEDO delivers Supplier Development Programmes suited to the client and their industry. These include:
- Tourism and Hospitality
- Facilities Management
- Information and Communication Technology
- Engineering Consulting
- Energy (oil, gas and renewable)
- Agriculture, agri-processing and food industry
- Automotive retail and services
- Logistics, importing and exporting
- Generic and ongoing Supplier Development programmes
How does MEDO deliver?
The MEDO team delivers the supplier development programmes at a “Bootcamp” held in Cape Town at the MEDO Incubator. All the small business owners are trained on LEAN methods and on how to be a LEAN leader. The programme focuses on governance and scaling a business to meet demand, and culminates in a Supplier Showcase presentation session to private and public sector supply chain professionals.
The MEDO Supplier Database
Over the years MEDO has developed a qualified supplier database that can be used for confidential and discreet introductions. This is not an open database for all to see, and we do not share our corporate clients’ contact details to prevent unsolicited introductions. All introductions are facilitated by the MEDO team and can guarantee that the suppliers’ credentials have been verified.
Where do we start?
We start with the analysis of your supply chain so that we can identify potential beneficiaries that you are already procuring from, as well as supply opportunities that can be made available to new EME and QSE suppliers. This analysis is the foundation for the design of a supplier development programme.
Meet our enterprising suppliers:
Contact us today if you are interested in supplier development Email Us
Resources: Read the DTI code for Supplier Development DTI BBBEE Code