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Plenary Panel Discussion 5 PowerPoint Presentation
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Plenary Panel Discussion 5

Plenary Panel Discussion 5

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Plenary Panel Discussion 5

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  1. Plenary Panel Discussion 5 SMME Development and Procurement Value Chain Facilitator: Maritha Marneweck Key Note Panellist: Clive Govender Panellists: Allan Gibson Champ Thekiso Bongiwe Mabusela

  2. SMME development & procurement value chain Transformation Indaba 2012

  3. ANGLO AMERICAN AT A GLANCE • Our ambitionis to be the leading global mining company • ‘Leading’ means being the investment, the partner and the employer of choice • ‘People making a difference in a company making a difference’

  4. ANGLO AMERICAN AT A GLANCE Key Corporate &representatives offices Platinum Diamonds Copper Nickel • Iron ore and Manganese • Metallurgical Coal • Thermal Coal Other Mining and Industrial: Following the reorganization of the business in October 2009, we decided to divest of a number of assets in addition to Tarmac (which had already been earmarked for divestment): Scaw Metals; and our zinc business (sold to Vedanta for $1.34 billion in May 2010). Other Mining & Industrial

  5. ANGLO AMERICAN AT A GLANCE Anglo American aims to be the industry leader and global benchmark for Supply Chain value creation In 2011, $13,809 million paid out across our global supplier base and $ 7,263 million of this spend was in Africa.

  6. LOCAL PROCUREMENT DEFINITIONS Local Procurement: relationship between location of supplier and location of recipient of goods/ services. Divided into 3 levels: South African Example X In South Africa, BEE ownership is an additional criterion.

  7. LOCAL PROCUREMENT STRATEGY 2013 → • Build Resilience • Globally competitive local suppliers • Provide leadership to external parties 2012 Maturity / Performance • Be Proactive • Implement LP strategic plans at all levels • Supplier development • Forward visibility, readily accessible 2010 - 2011 • Foundational • Policy • Build commitment • Targets measured and reported • Guidelines & toolkits 7 Time

  8. Anglo American's Local Procurement framework Deepening Anglo American Local Procurement Capacity LEARN Establish the business case & understanding the business drivers Determining demand opportunities for local procurement Assessing capacity of local businesses MEASURE Monitoring progress and impact Arro 1 Arrow 4 4 PLAN Developing local procurement strategies Arrow 2 DO Building Anglo American capacity Ensuring accessibility and visibility Integrating large and local suppliers Developing supplier capacity and capability Supporting entrepreneurs

  9. LEARN Local Procurement The business case for Local Procurement is aligned to Anglo American’s ambition of being the partner, investment and employer of choice. 1. Establishing the business case

  10. LEARN Local Procurement 2. Determining demand opportunities for Local Procurement Determining demand opportunities involves: Future demand analysis for goods and services over at least five years; Identifying the categories with potential to be sourced locally Description Determining opportunities Prioritising opportunities

  11. LEARN Local Procurement 3. Assessing local supply capacity Analysis of existing capacity within the local community will locate potential suppliers relevant to the demand opportunities. Suppliers with potential to supply a priority category will be evaluated on a range of criteria. Description Mapping suppliers to categories

  12. Local Procurement PLAN 4. Developing local procurement strategy The Local Procurement strategy integrates the business case, demand-side analysis and supply-side analysis to identify strategies to increase sourcing from local suppliers Local procurement targets and action plans are specific deliverables Description LP Tactics Matrix

  13. Local Procurement DO 5. Building Anglo American Capacity Appropriate resources are required: Competent dedicated staff Steering committees Collaboration across disciplines Systems and procedures Budget New roles were created and resources appointed to focus on local preferential procurement Local Procurement workshop: South Africa: 2 – 4 April 2012 Participants from Supply Chain, Group Category teams, Business Units, Social Performance, S&SD. Description Resources appointed Capacity Building Workshops

  14. Local Procurement DO 6. Ensuring accessibility and visibility Drawing on various approaches to make opportunities more accessible and visible to local suppliers, for example A range of preferential sourcing methods suited to local suppliers and SMMEs Only considering local suppliers for some contracts (ring-fencing); Creating smaller work packages (unbundling); Our payment terms will accommodate the needs of SMMEs Description Payment Terms Ring-fencing / Set asides

  15. Local Procurement DO 7. Integrating local and large suppliers Partnerships between our construction partners are improving development in the Northern Cape. With guidance and mentoring from Stefanutti, a local BEE supplier is gaining considerable knowledge and exposure to safety standards, quality control, programming and commercial activity. Many opportunities for local procurement are influenced by large suppliers (e.g. integrating local suppliers into large contracts) Description Partnerships Connecting large & small suppliers (LP Trade Fair)

  16. Local Procurement DO 8. Building supplier capability Using supplier development programmes to work with existing local businesses The suppliers’ capability is built and they are guided and supported towards growth and increasing competitiveness Description Supplier Development • Increased attention is being given to Supplier Development programmes by Anglo American’s South African Business Units

  17. Local procurement 9. Supporting entrepreneurs Entrepreneur Internship Programme (EIP) was launched end 2011. The EIP is a targeted internship programme hosted by Anglo American’s Supply Chain Aims to be a catalyst for high potential entrepreneurs interested in developing or growing a business in strategic, non-traditional areas 364 applicants applied, including current Anglo American employees. Five finalists were selected to join the 2012 programme A mix of skills training, targeted business exposure, and business planning support is being provided In many of the communities in which we operate, the constraints to Local Procurement are so large that our efforts to bridge the gaps also require attempts at strengthening the local market economy. Description Entrepreneur Internship Programme

  18. OVERVIEW: THE EIP Framework Transforming ideas into sustainable businesses

  19. MEASURE Local Procurement 10. Monitoring progress and impact Spend with Suppliers in Host communities Description • In monitoring and measuring our progress, we consider what impact we are having - both positive and negative.

  20. Anglo American’s approach and activities to promote local procurement and enterprise development are focused on exceeding compliance and collaborating for sustainable, meaningful change. Lessons Learnt to DateOn Our Local Procurement Journey • There is no magic ‘silver bullet’ – a multi-faceted approach is required • Local procurement is sustainable over economic cycles when built on a strong business case • Collaboration creates enabling environments for successful local procurement • Local procurement creates a positive impact by contributing to skills development, creating jobs, and investing in local infrastructure • Sound business principles and governance underlie all engagements and transactions

  21. Thank you

  22. Plenary Panel Discussion 5 SMME Development and Procurement Value Chain Facilitator: Maritha Marneweck Key Note Panellist: Clive Govender Panellists: Allan Gibson Champ Thekiso Bongiwe Mabusela