GE’s focus on supplier development
By: Louise Paulsen (Project Manager: Enterprise and Supplier Development)
GE has increased its efforts to create partnerships with key stakeholders and build a sustainable supply chain in localized areas. For this reason GE has adopted an approach of taking local Small and Medium sized companies from potential to qualified suppliers as a GE differentiator on the African continent.
By adopting this approach, GE South Africa (GESA) has taken a strategic decision to building a sustainable commercial partnership with small businesses.
This will be achieved by:
- Ensuring suppliers and specifically SMEs are the beneficiaries of GE participation in the local economy
- Developing SMEs within the region
- Growing the overall direct and indirect spend of GE in Sub-Saharan Africa
- Developing the local capacity of indigenous entrepreneurs to position GE favourably in partnerships with a view to winning key tenders.
SMEs are faced with many challenges on the road to success. GE understands this and provides assistance in three key areas that SMEs typically find particularly challenging:
- Technical and business development support
- Access to funding; and
- Access to markets
The Londvolota trust was established to aid in supplier development initiatives.
The trust is made up of five trustees: two GESA employees (Ross Boyd and Xandra Blacklaws) and three external (Monhla Hlala, Abdullah Verhacia and Thuto Masasa).
To assist with the operationalising of the trusts objectives, Londvolota has two partners, Aurik Business Accelerator and Business Partners.
Aurik Business Accelerator offers mentorship and advice. Business Partners provides the funding needed to take these entrepreneurs to the next level.
So far we have held a number of workshops that have helped us identify 28 different opportunities for SMEs to supply GESA. The model GESA has adopted is compliant with local legislation on local content and localisation, and serves to add to GESA transformation efforts and create a successful pool of black industrialists for GE. The programme also adds to GESA’s efforts to create a lasting legacy through the development of sustainable businesses.
As we move into the next phase of the programme, the team will be relying on GE employees to add to the technical development support, speak to suppliers and to engage potential suppliers where necessary.