Supplier relations

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procurement initiatives

 

SME PROCUREMENT

The group’s small- and medium-enterprises (SME) procurement target of 10% for 2008 was exceeded by 9,30%, representing a BEE/SME spend of R1 066 629 140 spread across 1 705 SME suppliers for the year.

 

EARLY PAYMENT

System and process changes were implemented to allow SMEs to be paid within seven days instead of the normal thirty-day payment period applied to larger suppliers. At 31 December 2008:

SUPPLIER DEVELOPMENT

Nedbank Group continually consults with its suppliers regarding the management of social and environmental issues. As part of our supplier assessment process, environmental and social sustainability questions have been included for new suppliers and specific engagements with key suppliers, such as in the pulp and paper industry, have also been held on sustainable performance. At this point supplier satisfaction is not formally measured, but the group holds regular meetings with all major vendors, and Nedbank Group staffmembers, who interact with vendors are required to complete 360° questionnaires to assess the service received.

 

ENTERPRISE DEVELOPMENT WITHIN NEDBANK GROUP PROCUREMENT

Nedbank remains committed to achieving our small- and medium-enterprise (SME) procurement targets as a means of contributing to enterprise development (ED) in South Africa and helping to empower BEE businesses in this country. To this end we strive to open as many doors to opportunity as possible through our support of BEE businesses – particularly black SMEs and black-women-owned suppliers.

Nedbank Group Procurement has enthusiastically embraced enterprise development as a means of raising the ability of small-scale suppliers to meet our group’s procurement needs. Examples of the measures we have taken in this regard include early-payment terms for small suppliers, increased procurement from ED candidates and the provision of technical and business support to black SMEs.

PROCUREMENT AND SUSTAINABILITY

During 2008 Group Procurement had several meetings with Mondi and Sappi – the two large South African paper mills whose products we use, and their primary distributors Waltons and Bytes Technology. These meetings focused primarily on sustainability issues and, as a result of these interactions, all parties have gained a better understanding of the challenges, opportunities and objectives of each party.

In 2008 the number of deliveries to our national branch network was reduced, thereby contributing to lowering the group’s overall costs and its carbon footprint.

As part of our drive to make as much use as possible of recycled products, we have engaged with a number of suppliers. Our primary envelope supplier, Merpak, now supplies the group with recycled envelopes, while Sappi provides us with its 50% recycled- and triple-green paper. We also continued our engagements with Green Office and Nashua, our primary office consumables providers, regarding the use of remanufactured toner cartridges for all Nedbank Group office equipment.

Through our commitment to encouraging our vendors to reduce their own consumption of environmentally unfriendly products, the group has helped to motivate the uptake of consolidated and electronic invoicing options, with a consequent reduction in paper consumption and associated storage requirements.

Nedbank has agreements in place with a number of its vendors to ensure the recycling of the print cartridges used within our businesses. In selecting the vendors for this purpose we considered the environmental and social criteria of the vendors in terms of our Supplier Code of Conduct and our Vendor Questionnaire. Good progress has been made in terms of the volume of cartridges recycled.

Nedbank Group will continue its drive to increase preferential procurement expenditure in the coming years, and we are proactively identifying companies with whom Nedbank may be able to form such sustainable, winning relationships.