SABEX, the export division of SABMiller's Africa Division, facilitates the sourcing and supply of goods and services required to run and maintain SABMiller's brewing, bottling and soft drink plants in 15 countries in Africa. SABEX is an example of a very mature company expanding into Africa, where the strategy has evolved during the past nine years to an Outsourced Business Process (BPO) model , outsourcing their operational supply chain activities.
"Sherwood has successfully supported the SABEX growth during the past nine years with their understanding of our industry, knowledgeable resources and enabling systems, in managing the administration of our supply chain activities. The administration includes sourcing and contracting suppliers on non-strategic commodities, procurement, transport and export arrangements, as well as the administration of debtors and creditors. Outsourcing the administration has enabled us to focus on our core business and support the comprehensive growth that we have experienced in the countries where we operate."
Robert McKenna, GM SABEX
Chevron is a good example of a mature and well established company that has developed the capacity and capabilities to effectively manage its own supply chain but has a deep understanding and appreciation of the costs and risks associated with the administration process. By outsourcing non-core administrative business processes, Chevron can free up internal resource capacity and achieve greater cost savings.
"In South Africa , we have contracted Sherwood International to provide us with the administrative management of low value and low risk procurement items. What makes this BPO unique is that we also leverage Sherwood's capacity to deliver to our benefit in allowing them to fulfil a Vendor Assisted Buying process, working directly on our Ariba procurement system. By following the outsource route, we will have significant benefits in savings in the cost of maintaining suppliers, cost of systems , as well creating capacity for our resources to focus on strategic items. We have implemented Key Performance Indicators with Sherwood to measure and govern our relationship, drive cost saving as well as measure performance. Sherwood has also delivered additional value by providing a consolidation and delivery outside the Chevron premises, reducing the volume of traffic and deliveries through our onsite warehouse."
The effectiveness of the inbound supply chain is critical to the success of any infrastructure development project as it directly impacts the original deadlines, cost and profit margins. The availability of supplies and material impacts the construction progress and, if not managed properly, could result in delays and ultimately in performance penalties. It also benefits companies at the end of the project by eliminating the hassle of terminating expensive resources and disposing or redeploying assets.
"When we were awarded the contract by the Ministry of Energy in Ghana to supply electricity to 537 rural villages in Northern Ghana, our choice of strategic partners in implementing this project was critical. After carefully looking at the options we elected to work with Sherwood International because of their extensive experience and footprint in Africa, particularly with their outsourcing skills and reputation of ensuring that the right products arrive at the right destination at the right time. They provided us with infrastructure, support and systems that had been tried and tested over the years, This was relevant to the project in that we had to ensure all the correct materials were delivered to our remote site warehouse in time for the installation teams to complete their work. Their professionalism and experience in Africa definitely helped us in the successful implementation of this project."
Ray Farrenkothen, MD Thengashep Ghana