Factores predictores de respuesta

The responses from the respondents and participants were analysed based on the research objectives from RO1 to RO4, the following key findings were gathered from the questionnaires and face-to-interviews.

RO1 To examine the current implementation of strategic sourcing and supplier development at Eskom

The aim of this section was to assess the methodologies utilised and processes applied by the two departments in attaining their mandate as mentioned in Chapter 2.

 The manner in which strategic sourcing is implemented is based on the development of sourcing strategy to source products and services. The methodology that is used by Eskom is indicated in the literature review in Chapter 2 as Model 1, as presented in Figure 2.5. It was ascertained that a supplier development process exist in Eskom, however there is no evidence of its application in the business. It was established that the 7x7 strategic sourcing methodology and the disconnected supplier development process (Model 1, Figure 2.12) are misaligned and the mechanism of integrating them is unclear.

 Strategic sourcing and supplier development were designed independent of each other hence the disjuncture. The strategic sourcing methodology being used in CS emerged as a practice that is not well-understood in SD&L. There is also a lack of understanding of processes and practises that are used in SD&L. This implies that ineffective communication between these departments which are meant to be working in unity could be one of the stumbling blocks.

 Supplier department appeared to be a retrofit in the strategic sourcing and not thoroughly integrated in planning and implementation. Interaction and consultation by CS with the SD&L is on the basis of urgent need and not on a continuous basis and this makes information sharing difficult.

 Performance contracts of respondents are based on the speed to develop sourcing strategies to source commodities and services. Cost savings, SRM, visibility of procurement and innovations are not considered as main focus areas.

 SD&L is at infancy stage within Eskom and has not yet been embraced in the entire business

 It was found that procurement spend is leveraged to implement supplier development.

 Most of the models of supplier development detailed in Table 2.4, Chapter 2 involve top management on the supplier and buyer’s side. In contrast,

Eskom’s supplier development does not indicate top management involvement.

 Strategic sourcing and supplier development are still at the operation level in Eskom. It was discovered that strategic sourcing and supplier development are generally not viewed as strategic functions in the company.

 It appears that there is a lack of common understanding or appreciation between the departments of how each department operates. For example, the supplier development process was not mentioned when it was asked how SD&L is currently implemented.

It can be deduced that there is no unified and systematic approach on the planning, implementation and monitoring tasks between the two departments.

RO2 To assess the relationship between strategic sourcing and supplier development at Eskom

 The existing relationship between strategic and supplier development is not well organised. The culture and leadership appeared to have an impact on the situation.

 It was found that the Eskom supplier development process was developed through an independent approach which did not incorporate a fundamental strategic sourcing methodology. This is evident in Chapter 2 where both models of strategic sourcing and supplier development which are applied at Eskom appeared to be disjointed and misaligned.

 An impression was given that there is a divergence by leadership on whether supplier development is a platform to create value for money. Strategic sourcing seems to be misapplied as it is only used as an instrument to develop sourcing strategies and source commodities and service. The fact that involvement of CS in Eskom’s corporate planning is limited is a signal that strategic sourcing is at operational level.

 An assessment of strategic sourcing in relation to supplier development shows that strategic sourcing could be a catalyst for supplier development in Eskom.

RO3 To establish possibilities of how strategic sourcing could be a catalyst for supplier development in the context of Eskom

 There is enormous support for the formation of a joint strategic planning committee responsible for planning and performance measurement. This support signals shortcomings which are inherent in the system.

 Integration and collaboration appear to be challenges as they are not properly managed. Findings revealed that collaboration is incidental, that there is a presence of structural misalignment, a fragmented approach is followed, ineffective XFT exists, supplier development objectives in the 7x7 sourcing methodology are excluded, and undefined roles and incompatibility between CS and SD&L exist. SD&L related challenges were exposed, namely supplier development being an add-on in sourcing function. These challenges do not support collaboration as they thwart the business.

 Visible and supportive leadership is required particularly from the chief executive’s office to champion strategic sourcing and supplier development.

 Consolidation of sourcing functions was emphasised to streamline processes.

 Implementing a robust change management programme to change perceptions that SD&L is obligatory. The mindsets and attitudes of people in the entire supply chain need to be in support of supplier development.

 Procurement practitioners need to be developed and trained on supplier development processes in order to be responsible and account on supplier development deliverables.

 Improve communication and accountability across the business functions.

 The respondents and participants advocated the formation of a joint strategic planning committee between CS and SD&L.

RO4 To discern pragmatic initiatives to strengthen integration between CS and SD&L

Some initiatives on strengthening integration between CS and SD&L were identified.

These include:

 It became clear that the restructuring and reviewing of 7x7 sourcing methodology to integrate SD&L objectives is required in GC.

 It follows that a proper implementation of the business plan and measurement

metrics and reports on them; agreement on strategic objectives, joint participation in implementation and joint monitoring and reporting;

 The role of both strategic sourcing and supplier development practitioners needs to be clearly defined and ensure that the performance contracts of practitioners include strategic objectives of both departments.

 It was established that there are cultural challenges which need to be addressed in the organisation.

 Some of the employees are qualified in diverse fields, some of which are not related to the occupied positions, therefore training and development programme is necessary to enhance core competencies in the functional areas.

5.4 Conclusion

In Eskom, the lack of synchronisation within Group Commercial (GC) tends to reduce the positive impact in the business. Integration between strategic sourcing and supplier development can achieve significant benefits for Eskom if it is linked with the company’s eight dimensions of sustainability. The eight sustainability dimensions aim to stabilise and sustain the company in the short and medium to long term and they are the foundation for operations (Eskom Corporate Plan, 2015-2020:27-29). It is imperative that sourcing and supplier development decisions are considered in light of the sustainability dimensions. Both strategic sourcing and supplier development need to be central to Eskom’s efficiency and value for money.

The results are consistent with the literature review on the strategic importance of the strategic sourcing in the business. The challenges which were uncovered on the evaluation of the procurement strategy (Eskom Procurement Evaluation, 2013:9) compliment with the challenges which have been found in this study.

Strategic sourcing can be maximised if it is well-integrated with other internal business functions. An integration model for processes in Chapter 2, section 2.11 can be employed in this scenario. It should incorporate activities ranging from corporate planning through to contract management to ensure value for money in sourcing of goods and services. The study revealed that, due to a lack of standardised integration between strategic sourcing and supplier development methodology at Eskom, performance improvement and competitive advantage can

be at risk. Model six of the strategic sourcing methodology suggests a great opportunity to incorporate supplier diversity goals in the first three steps (Dolan & Fedele, 2004:3-6). Supplier diversity in Chapter 2 can be equated to supplier development in Eskom because they both focus on industrial development and transformation.

Even though there is positivity to some extent on the part of the commodity managers in CS with regard to integration, middle managers in SD&L have had opposite views. Executive management must start to recognise the significant benefits that strategic sourcing and supplier development can bring to the company.