Csdp Monique

Terms of Reference for the Railways and Harbours Supply Chain Association August, 2008

Spend Analysis and Opportunity Areas Transnet Spend 2008 – 2012* 100

Transnet’s CSDP Approach 100
Transnet’s Supply Management’s long term strategy is to localise the supply chain to a reasonable level while promoting local industries and South Africa as an off-shore site of choice for OEM and multi-national procurement personnel.

Transnet’s CSDP Focus Suppliers’ CSDP Focus Transnet’s ED Focus Transnet’s PP Focus Suppliers’ PP Focus Supplier Development Category Supplier Development Activities Port Equipment OEMs: GE, GM, EMD, Mitsui, Alstom, Siemens TRE DCD UCW SCAW SURTEES* *SURTEES IS A WAGON MANUFACTURER IN MINING INDUSTRY **ED – Enterprise Development / PP – Preferential Procurement OEM s Export SM personnel lobby with OEM Global Sourcing Team SM personnel RFx process and contract negotiation SM personnel advise on available partners and TRE involvement SM personnel identify ED opportunities Transnet’s CSDP phase one Strategic Approach will be to focus on Tier 1 suppliers and to assist them in engaging Tier 2 suppliers Skills Transnet’s CSDP Approach Sphere of Influence Tier 1 Systems – Subsystems Tier 2 Tier 3 Other Rolling Stock Components Assemblies IP FDI Goods Services Kalmar Liebherr / CPS Projects Alstom OEMs: Kalmar, Liebherr Cranes, Straddle Carriers, RTGs, Tugs, Dredgers Supplier Base Sphere of Control

Transnet’s CSDP Approach: Locos example CAPEX OEM with maybe a PDI partner CAPEX OEM with local PDI partner CAPEX OEM / Local JV Traditional OEM Purchase Forex Dependency OPEX OEM with maybe an PDI partner as agency Rev Eng 100% 80% 60% 40% 20% Local Content Recent OEM Purchase (MARS) Value OPEX OEM with maybe an PDI partner as agency Local Assembly Pending OEM Purchase (EMS) CAPEX OEM / Local JV Manufacture and Assembly OPEX OEM OPEX Local JV CSDP 1 (and in future) – forced 40% local content CSDP 2 – increase localisation of previous deal Enterprise Development – not on radar

Each opportunity will be analysed and CSDP initiatives requirements determined and incorporated into tenders Impact on Industry Development Targeted skills Maintenance and repair capabilities Component Manufacture / Upgrade capabilities System / Sub-system manufacture High Low High Low Complexity and Participant’s Risk National Economic Growth Operational Tactical Strategic Transnet CSDP Objectives Export Potential CSDP Initiatives are measured for return / impact – although complexity and risk increases with greater impact Strategic Industry Plan Overarching capabilities associated with tenderers Definition of appropriate requirement

Association Terms of Reference
Inbound Logistics (long-term changes)
Ability to promote meaningful dialogue between buyers and suppliers in the industry
Allow OEM’s to present new R&D and products without the “sales” pressure
SOE’s will be able to provide coherency to the market with respect to growth initiatives and changes in service delivery without compromising the tender process
Buyers can exchange information and look at improving economies of scale or researching new technologies (or CSDP initiatives)

“ It is when we start focusing on value for money that procurement starts becoming a key strategic tool for sustainable economic growth and development; when buyers start focusing on obtaining value for money, they start to change their behaviour in ways which encourage investment in local industry and the development of more competitive suppliers, which in turn are foundations for economic growth and development.” Minister Alec Erwin Department of Public Enterprises Any Questions

Csdp Monique

by Railways and Harbours on Sep 01, 2008

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Csdp Monique — Presentation Transcript

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