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Strategy and Advisory

SME development is not a linear process. While most organisations want to close the gap in their black economic empowerment and transformation efforts, level up their B-BBEE scorecard, and leave behind a lasting legacy as an impact visionary for ethical business, each organisation will map their journey to this point differently.

Each has their own specific business objectives, constraints, values and industry nuances. Taking all these factors into account is essential to building an impactful and sustainable SME development solution.

Through our Strategy and Advisory function, we collaborate with our corporate partners to design an optimal solution set to help drive their business objectives. Ultimately this means more relevant and impactful programmes for corporates and SMEs alike, resulting in supply chain transformation, industry value chain transformation and broader shared value creation.

These macro results are enabled from ground level through better implementation of solutions, better ability to measure impact and effectiveness and obtaining better support from corporate stakeholders.

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Case Study: CCBSA Strategy Pays Off

The Challenge

Coca-Cola Beverages South Africa had an imperative - moving from a Level 8 to at least a Level 2 B-BBEE rating within a period of four years, or they could run the risk of government and compliance penalties. Achieving this goal required a significant increase in points from the PP and ESD pillar and R4bn of procurement spend to be redistributed to local suppliers within three years.

Lack of integration between the procurement and ESD function, limited procurement savings opportunities and not enough clear business data, plus the need to achieve all this without compromising the normal operations of the business, made this a significant challenge.

The Solution

Through close consultation with the client, Edge Growth did a complete Procurement Transformation Strategy including the essential ESD pillar and developed a revised ESD operating model. To address the lack of business insight into these essential aspects, a data analytics solution was developed with a complete ESD execution road map with short-, medium- and long-term initiatives.

One of the most significant long term activities is a dedicated SME Growth Fund, carrying CCBSA branding and providing funding for ESD SME beneficiaries in their supply chain.

The Impact

  • R1bn cost savings over a five-year period
  • B-BBEE level 1 achieved in five years
  • R5bn in procurement spend redistributed to local SMEs
  • R750m working capital freed up due to integrated business analytics solutions
  • Transferred PP and ESD capability to internal staff
  • 1,500 SMEs positively impacted through financial and non-financial support

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