The golden thread between the Strategic Sourcing function within Barloworld Equipment's (BWE's) division and Barloworld Siyakhula is understated. This thread is a critical enabler for Siyakhula to fulfil its transformation mandate within Barloworld sustainably. A strategic, systematic approach is taken, which is not always visible to the naked eye but exists to ensure the alignment of operational business needs and Siyakhula transformation objectives. An enlightening, fascinating conversation with the Executive Head of Strategic Sourcing at BWE, Mr Sydney Tshibubudze, reveals how the business sourcing requirements drive the organisation’s transformation agenda.

Designed to create value uplift and leverage spending by optimising bargaining power, the Strategic Sourcing function is modelled on three key pillars:

1. Category Management looks at leveraging organisational spending to create value (core savings) and enable operational efficiency. The expenditure analysis allows BWE to identify transformational gaps in categories, resulting in recommendations being made in onboarding specific Small and Medium Enterprise (SME) service providers
2. Tactical sourcing focuses on fulfilling daily business on-demand requirements to improve speed and respond to business needs. This is balanced with providing opportunities to targeted SMEs and Siyakhula beneficiaries.
3. Enterprise Supplier Development works closely with Siyakhula to identify a pipeline of suppliers that will be developed. This includes providing regular reports on Supplier progress in terms of market access from BWE spend.

Previously, the Siyakhula beneficiaries were onboarded on a word-of-mouth or referral basis without directly aligning with a business spend opportunities. With a more strategic approach adopted, Category managers are at the forefront in identifying potential SMEs in the market who become Siyakhula beneficiaries. The transformation focus has also been on prioritising specific designated groups such as youth, women and previously disadvantaged people. The precision with which this has been done has seen the organisation’s BBBEE scoring surpassed in this area.

As set out by the Strategic Sourcing team, the accountability loop takes place by engaging businesses to see how the onboarded beneficiaries are performing and has seen excellent results achieved to date. The Category managers are measured on their efforts to increase spending with Siyakhula beneficiaries within their respective categories. Taking a moment to reflect on the previous approach versus the current proactive approach has seen Siyakhula grow from strength to strength. The business operations are satisfied with their operational needs being met and continued achievement of Level 1 BBBEE contributor status.

In wrapping up the conversation with Sydney, he was keen on sending a message to the beneficiary community that BWE is a true corporate citizen, committed to investing in driving sustainable socio-economic transformation and development of previously disadvantaged communities where BWE has a geographical presence. It was clear that Sydney’s passion for Strategic Sourcing has contributed to aligning with Siyakhula and other critical business stakeholders to create value and sustainable transformation. With Siyakhula as the Transformation vehicle of the organisation, it is clear that the organisation as a whole is committed to transformation.

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