Eskom Shores Up Strategic Suppliers

  • To strengthen the utility’s relationship with its strategic suppliers,South Africa’s state owned energy utility, Eskom, today introduced the Strategic Supplier Engagement Forum, with the first session virtually facilitated today.
  • Addressing the supplier forum, which was attended by 29 suppliers, Group Chief Executive André de Ruyter emphasised the need for Eskom and its suppliers to collaborate to take cost out of the supply chain, by focusing on a reduction in working capital, improving service levels, and be eliminating inefficiencies in Eskom’s procurement system, which add to the cost of doing business with the utility. 

Chief among the discussions in this inaugural engagement session was how Eskom and the suppliers can create mutually beneficial collaborative partnerships, increase efficiencies and co-create the Eskom of the future. Four key focus areas in building sustainable supplier relationships for financial sustainability have been identified, namely to improve broader relations, leverage new contracts, focus on existing contracts, and drive procurement reforms.

During the session, Eskom highlighted that despite the significant challenges currently facing the organisation, there are also significant collaboration opportunities for Eskom and its suppliers to co-create value through innovation and strategic partnering.

Eskom endeavours to have long-term partnerships with its key suppliers underpinned by localisation, transformation, cost-effectiveness, the stable supply of products and provision of services, quality, safety, shared value principle as well as quicker turnaround times, among other considerations.

Link to the full presentation HERE

Author: Bryan Groenendaal

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