To strengthen its relationship with its strategic suppliers, State-owned power utility Eskom has introduced the Strategic Supplier Engagement Forum, with the first session held virtually on July 15.
Addressing the supplier forum, which was attended by 29 suppliers, Eskom group CE 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 eliminating inefficiencies in Eskom’s procurement system.
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 considerable challenges it is currently facing, there are also considerable collaboration opportunities for Eskom and its suppliers to co-create value through innovative and strategic partnering.
Eskom says it 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 principles and quicker turnaround times, besides other considerations.
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