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SAA Procurement Processes for Textiles Industry

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  • 1. South African Airways (SAA) Uniform 10 September 2013
  • 2. SAA Uniform Cost Effective Uniform Management including supplier relationships – contracts (penalties), working with SMME’s, suppliers 1 2 Supply Chain Management - Procurement Procedures 3 SAA focus on SMME’s New Uniform tender to be issued4 List of Commodities5
  • 3. YOUR LOGO Global Supply Management - GSM  Currently SAA’s Global Supply Management (GSM) is center-led, where strategic and operational procurement activities are taking place.  Any procurement of goods and services to the value of R500k (VAT inclusive) to follow a three quote system.  Any procurement of goods and services where the value exceeding R500k follows the open tender process, confinement or sole source approach, depending on the nature of the request, will be recommended by Cross Functional Sourcing Team (CFST).  All tenders up to the value of R1m (VAT inclusive) can be approved by the HOD GSM  Note: SAA website SMME’s can register as potential suppliers on our data base  http://www.flysaa.com/za/en/footerlinks/aboutUs/saa-tenders.html Supply Chain Management - Procurement Procedures
  • 4. YOUR LOGO Global Supply Management - GSM  Preference to:  50% Black owned Businesses  30% Black Women owned Businesses  Black Youth owned Businesses  Black People with disability owned Businesses  Black People living in Rural areas  Utilise the Supplier Database as one of the vehicles to achieve the anticipated objectives  Enterprise & Supplier Development  Local content – will channel efforts towards the increase in local content in procurement tenders  Give advice, guidance and arrange training in areas such as management, skills, quality, finance, procurement, marketing and production management  Assist with business planning, project and operational management  Assist with strategy setting to ensure the supplier develops and does not depend on SAA for survival  Promote joint ventures and / or Consortia as a tool for skills development  Start-up Pay within 7 days  Encourage Diversification SAA focus on SMME’s
  • 5. YOUR LOGO Commercial in ConfidencePage  5 Effective Uniform Management
  • 6. YOUR LOGO Page  6 Cost Effective Uniform Management including supplier relationships Cost Effective Uniform Management Systems • Local market with local factory, working with our supplier base • Alternate options for local materials in relation to our specifications • We alter specifications if the above changes or default to a deviation sheet that accompanies the specification. Supplier Relationships • 6 weekly meetings with our key suppliers, alternate venue (factory checks ad-hoc) include key CFST members • Meet more frequently with problematic supplier • SABS in-production and final sample inspection as part of the quality control process
  • 7. YOUR LOGO Page  7 Managing our suppliers through contract management • Contract makes provision for late deliveries and poor workmanship • Extensively working with the supplier to get the best quality, which includes the SABS processes • We deal with the manufacturers directly do not allow suppliers to outsource to smaller companies as it affects quality control, always another person in chain of events to blame. SABS approved sub contractors if we allow them. • Any JV’s, require BEE & TAX clearance certificate for JV as well as all SABS documentation • Any sub-contracting - we do not allow more than 25% outsource Cost Effective Uniform Management including supplier relationships
  • 8. YOUR LOGO Page  8 SMME’s • Current • Small items such as pantyhose, socks and belts, aprons – follow RFQ, concluded 2 year contracts to avoid unnecessary tender costs for SMME’s – also include SLA and specifications • SMME’s we are a lot more involved with them, factory visits, SABS assistance. Future The above and ........ • Award tenders to SMME’s for uniform • Requirements – SMME’s to be approved by SABS and have a capability report from SABS • SMME’s have capacity or award a portion of a contract to build-up capacity Cost Effective Uniform Management including supplier relationships
  • 9. YOUR LOGO Page  9 New Uniform tender to be issued Cabin and Ground crew (GCC) uniform • Suiting (Jackets & Pants), Shirts, Blouses • Smalls – pantyhose, sock, safety socks, belts, insignia, handbags Flight Deck crew (FDC) uniform • Shirts, blouses including maternity blouses, insignia
  • 10. YOUR LOGO Page  10 LIST OF COMMODITIES Categories Sub-categories Corporate Services Stationery supplies and printing Recruitment and placement services Training and Development Specialists Computer equipment and consumables supply Management Consultants Clothing and textiles Hospitality and Media Advertising, Media and Communication Hotel accommodation Crew transportation Event Coordination and Management Exhibitions, road shows, exhibition stands Medical Facility Services Interior and Exterior furniture & décor & cleaning services Cleaning products supplies Building maintenance and repairs Construction and office space Signage Ground Handling Ground service equipment Setting up designated areas for delivery and collection of bicycles In-flight Products and Services Catering Food Perishable Supplies Laundry Services Supply and maintenance of galley equipment Transport services Travel coordination and shuttle services Vehicle repairs Aircraft Interiors Aircraft Hardware Tooling General Aircraft Tooling OEM Tooling Aircraft Mechanical Systems
  • 11. YOUR LOGO Page  11 Questions and Answer Session