::: Editorial :::

Seasons Greetings!

Almost everyone I talk to says that 2010 has been a tough year and also a year of hope. The economy has been stagnant for much of the year. On the other hand we had a successful World Cup that lifted our collective national spirit and self belief; job losses have slowed down; successive reductions in interest rates have brought some relief to consumers and home owners; and there is a general feeling that there is now light at the end of the tunnel.

We at saibl are also approaching the end of 2010 with much hope and expectation of better things to come. The South African Supplier Diversity Council (SASDC) has been formed and is open for business. We have designed and successfully tested various programmes and tools that will help to underpin the work of the SASDC. The demand for support from black suppliers has continued at a consistent level, and the quality of companies supported has improved significantly.

We have submitted a proposal for a two year extension of the saibl programme. We are hopeful that with renewed support from our key sponsor, USAID, we can take the programme to a sustainable level with more corporations and other partners joining.

I hope that you will all have a restful, happy and safe festive season, and that 2011 will turn hope into success and progress.

John James
Chief of Party, saibl

::: Diversity Briefs :::
South African Supplier Diversity Council

On 26 November 2010, a workshop was convened at the request of the SASDC Steering Committee, for the purpose of ensuring a full and clear understanding of the SASDC model, including Council objectives, proposed governance structures and operational strategies, as well as all associated deliverables and related budget projections. There were 24 attendees at the workshop, which included Steering Committee members and their respective proxies, saibl Corporations and Linkages staff and strategic partners, including USAID.

At the workshop, kindly hosted by Barloworld at their Sandton head office, the attendees concurred on the following:

• Despite currently being funded by USAID, it is imperative that the SASDC identify and secure sufficient alternative revenue streams, thereby ensuring the Council’s sustainability beyond USAID grant monies.
• Whilst the establishment and operationalizing of the SASDC are primarily concentrated in Gauteng, the SASDC must prioritize rolling out to all ‘growth centers’ in South Africa (both geographically and sector-specific).
• It is imperative that members of the SASDC and the Board are advocates of supplier diversity throughout the country, including inter alia the submission of supplier details to be considered for certification.
• An appropriate membership and advocacy strategy for the Council is critical, and should involve broad engagement with key stakeholders and in varying forms.

The Way Forward

The SASDC registration as a Section 21 company is already underway and it is anticipated that the CIPRO registration certificate will be issued before the end of this year.

Although not yet registered, a substantial amount of work has already been done "behind the scenes". This allows the Council to demonstrate its operational readiness, with tangibles such as:

• Nine founding member companies having already signed up;
• Linkage facilitation tools and supplier diversity training manuals developed and ready for use;
• A comprehensive forward-thinking SASDC organogram with the necessary human and systems support already allocated to execute the various operational activities; and
• A pipeline of over 700 potential suppliers that would be directly engaged for certification.

The workshop gave attendees comfort in the establishment and process decisions, as well as the delivery to date of the SASDC Founding Steering Committee. There was a general feeling that the Steering Committee's hand-over to the Board of Directors will be a smooth one that will enable the Council to operate fully and immediately after the Board has had its inaugural meeting.

If the enthusiasm and energy of the workshop are anything to go by, the SASDC promises to be a platform for courageous conversations and meaningful change!

Visit us on the web: www.sasdc.org.za

::: Trade Talk :::
Trade Finance Part 5: Open Account

Tim Bergstrom, head of the saibl office at the CCA in Washington DC, continues his series on trade finance by discussing the open account as a method of payment.

An open account transaction means that the goods are shipped and delivered before payment is due, usually in 30 to 90 days. Obviously, this is the most advantageous option to the importer in cash flow and cost terms, but it is consequently the highest risk option for an exporter. Because of the intense competition for export markets, foreign buyers often press exporters for open account terms. Therefore, exporters who are reluctant to extend credit may face the possibility of the loss of the sale to their competitors.

Read more on the open account >>>

Trade Tips Part 5: Entering New Frontiers - Successful Trade Mission Participation

Cos Mamhunze, an International Trade Specialist at saibl's Johannesburg office, concludes his discussion on Trade Tips in the last part of this series of articles on international trade. This article was co-authored by Bongi Mbili, an International Trade Specialist at saibl's Johannesburg office.

Most companies are slowly getting into the restive festive mood, and preparing for 2011. Those with an eye on export markets are already making decisions on which trade events to participate in next year. In this article, we will give you tips that will help make your trade event participation a bit easier.

More on succcessful participation in a trade mission >>>

::: New Clients :::

saibl wishes to welcome the following new clients that have registered with the programme.

Eastern Cape

• Comshelve 109 t/a Khanya Engineering, Port Elizabeth (Automotive material manufacturing and handling)

Limpopo

• Thohoyandou Agricultural Coop, Thohoyandou (Agri-processing - peanut butter)

Western Cape

• African Kaleidoscope Events, Cape Town (Exhibitions and events management and planning)

In this issue:

• Diversity Briefs
• Trade Talk
• Trade Events
• New Clients
• Black Business Opportunities
• Service Providers
• Enterprise Support
• saibl@work
• Talk Back

::: saibl@work :::
PSC Tool

As part of its capacity building initiatives, saibl has adopted a strategy of developing specialised tools to equip its listed Business Service Providers with resources to improve their efficiency and effectiveness when handling assignments.

A recent addition is the Picking Sound Companies (PSC) tool which is aimed to standardise and speed up the assessment of prospective companies to be recommended for assistance under a range of programmes.

The web-based tool has gone through a testing phase from June 2010 and is now actively used for training of consultants and screening of applications. The tool allows three levels of login access, starting with the consultant handling an application, followed by a review by an assignment supervisor, and thereafter by the manager who makes the final decision on each case. The whole assessment process is handled online and permits concurrent use.

The tool standardises the screening of applications on set criteria such as eligibility, establishment, financial condition and suitability with a memo page for summarising findings and recommendations. In terms of speed and consistency of method, the PSC has introduced a new standard not previously known in the market. Most of the information required to support a decision is evidence based and this leaves little room for subjectivity in the screening process.

To date, more than 150 applications have been tested and/or screened online. Users find the tool to be easy to apply and administer. For straightforward cases, the tool enables self-assessment. i.e. the consultant can test a case and receive an automated ‘GO or NO GO’ decision with an option to seek an override in exceptional situations. This facility is especially useful when handling a large number of cases.

The tool has wide application and can help improve the quality of suppliers on databases of many corporations and government departments. More than 100 consultants have been trained in the use of the tool and all are actively using it for the initial assessment of applications. A growing list of approved cases is proceeding to interventions or the more detailed company diagnostic process.

The main challenge for users is to come up with clear and well founded conclusions and recommendations that support the proposed interventions. In addition, the speed afforded by online access needs to be complemented by adequate comments/evidence against each score to enable a remote reviewer to arrive at the decision to override or approve a case without delay. Regular practice and attention to detail when collecting information help to ensure timely completion of each PSC assignment.

saibl is supported by the United States Agency for International Development (USAID). The programme is implemented by the Corporate Council on Africa, ECIAfrica and the National Business Initiative under a strategic partnership agreement with the Department of Trade and Industry.