Engen boosts Supply Chain development
As part of Engen’s transformation agenda and in pursuit of contributing to socioeconomic development, Engen implemented a Supplier Development pilot programme at their Engen Prosperator facility in Durban. The programme has experienced some exciting results.
Engen is serious about transformation and has invested R78 million over four years to help mentor, nurture, train, upskill and develop qualifying small businesses. To this end, the company has identified key commodities and services that seek to ensure sustainable transformation of the supply chain via its Supplier Development initiatives. These include engineering, bulk fuel transportation, HSEQ (Health, Safety, Environment and Quality) and construction.
In partnership with Raizcorp, Africa’s most successful and established for-profit business incubator model, the aim of the Supplier Development initiative at the Engen Prosperator facility is to accelerate the success of Engen’s existing enterprise development entrepreneurs, says Unathi Magida-Njokweni, Engen’s Group Transformation Manager. “This will not only enable them to become fully fledged Engen suppliers, but it will also attract new suppliers who will form part of Engen’s supply chain,” she says.
Engen’s Chief Procurement Officer, Reagan Marchant says in terms of the requirements of the Revised BBBEE codes, Engen is committed to help empower small and medium businesses and ensure real integration. “We implemented the programme in 2015 and can already confirm that three suppliers on our Supplier Development programme have been absorbed into the Engen Procurement supply chain and have been commissioned to undertake work for the Engen Refinery. There are currently an additional eight suppliers in the pipeline undergoing training in sectors such as engineering, bulk fuel transportation, HSEQ and construction. They all have the potential to further strengthen Engen’s supplier pool.”
The three suppliers absorbed into the Engen Procurement supply chain and commissioned to undertake work for the Engen Refinery are:
Abjoy Construction, who were awarded a tender to provide perimeter fencing for the sports field opposite the Engen Refinery. The field is used by the local community and school children. This project provided job opportunities for four people.
BLK Wellness, who undertake medical waste removal and other wellness services required by the Refinery.
Clean Spot, who provides office cleaning services to the Refinery.
“Raizcorp is proud to be partnering with Engen on delivering this important programme which is focused on building skills for small, black-owned businesses,” says Alfie Naidoo, Chairman of Raizcorp. “Too often businesses fail, not because of a lack of funding but rather because entrepreneurs are not equipped with the tools to run a successful businesses. Our expectation is that the graduates of this programme will be in a much stronger position to create wealth and grow the economy.”
Njokweni-Magida says Engen is contributing to the transformation of South Africa by equipping entrepreneurs with better capabilities to grow their businesses.
“By supporting the advancement of small and medium sized businesses and creating a sustainable entrepreneurial culture, our contribution will go a small way to creating much needed jobs and help curb high levels of unemployment in the country and the communities in which we do business,” she adds.
In 2016 work is ongoing to find additional procurement opportunities for other remaining service providers that are part of the Engen Prosperator programme.
Tasneem Sulaiman-Bray, Engen’s General Manager of Corporate Affairs, says Engen is proud to be associated with Raizcorp. “As Engen we believe that given the correct support, entrepreneurs will be a catalyst that will inspire economic growth and transformation in South Africa. We recognise that a growing small, medium and micro-sized enterprise (SMME) sector is vital for broadening economic participation and delivering on our country’s economic development objectives,” she says.