Established the E&SD committee in 2019, which meets quarterly
Tender process concluded and fi nalised a business case proposal to be presented to exco for consideration
Implemented stringent controls to mitigate risk of procurement from non-compliant suppliers
While the group has appointed two preferred service providers in this regard, the progress towards entrenching BDS as a fundamental requirement remains a strategic focus
This was achieved and communicated to the group
Investigations into alternative business intelligence platforms remains ongoing
|PREFERENTIAL PROCUREMENT||SUPPLIER DEVELOPMENT||ENTERPRISE DEVELOPMENT||TOTAL POINTS OUT OF A POSSIBLE 40.00|
|Spend (R million)||3 223||3 306||44.4||46||12.3||10.2||40||40|
|B-BBEE score achieved Points/(%)||100%||100||100%||100||100%||100||100%||100|
The group remains committed to creating opportunities for all suppliers, especially B-BBEE compliant SMMEs. We maintained our B-BBEE levels across all pillars in support of economic upliftment through our supply chain nationally. Our focus remains on improving spend allocation across a broader base within our supply chain. We continue to address this through our ongoing procurement controls.
Sun International introduced an online tender bulletin board to advertise formal sourcing activities in an open and transparent platform. This platform now also allows prospective suppliers to submit online quotes for direct inclusion in ad-hoc sourcing opportunities and can be accessed on our corporate website: https://corporate.suninternational.com/ procurement/tenders/
Sun International’s total measured procurement spend for the financial year exceeded R3.2 billion (2018: R3.3 billion), of which R2.99 billion was procured from over 2 900 verified B-BBEE-compliant suppliers. This 93% valid spend compliance was below the group target of 95% for 2019. Our 2020 goal is to reach and maintain 95%.
The group continues to engage suppliers that support our objectives and meet our optimum B-BBEE standard: black-owned with a level 3 rating or better. 51% of group spend met this optimum requirement, exceeding our 45% target for 2019. Our revised 2020 goal is to reach and maintain 60%.
Black-owned SMME spend of 26% (2018: 35%) was achieved, exceeding our 25% target. We intend to increase our annual target to 35% by 2020.
Stringent B-BBEE compliance controls are implemented throughout the year, including suspending a significant number of noncompliant suppliers. These controls positively impacted the transformation of our supply chain when measured against internal indicators and were introduced as part of our preferential procurement strategy towards achieving optimal compliance by 2020.
Revised Target by
|Black women spend||30||21||19|
|Level 1 to 3||80||73||63|
|Valid B-BBEE spend||95||93||92|
|1||Actual contribution invested, not the recognised values as per the B-BBEE Codes..|
Although sourcing suppliers is commercially driven, we remain committed to economic transformation in South Africa by adopting the B-BBEE framework that encourages black SMME participation. We give preference to commercially competitive suppliers who meet our optimum B-BBEE compliance standard. All potential suppliers must register on the Sun International supplier database for inclusion in any sourcing opportunity. Sourcing opportunities are also advertised on our corporate website.
Preference will be given to commercially competitive suppliers who demonstrate optimum Sun International B-BBEE compliance.
Sun International’s E&SD strategy remains a group priority, emphasising responsible corporate citizenship and a commitment to the environment, community and economy. These objectives drive our supplier sourcing and create opportunities for small businesses to enter our supply chain.
The group’s E&SD programme identifies and assists businesses at our various properties through capital funding or other business development services, with the goal of:
The group committed R44.4million (2018: R46 million) in supplier development, including early settlements substantially above the claimable value. An additional R12.3 million (2018: R10.2 million) was committed in enterprise development, supporting a pipeline of new business into the supply chain. This investment represents 8% (2018: 18.75%) of net profit after tax, against the Tourism Code’s requirement of 3.5% for the tourism sector.
Sun International believes that the endorsement of a small business goes a long way in supporting market access, job opportunities and uplifting local and regional communities. The group is proud to endorse our E&SD suppliers on our corporate website: corporate.suninternational.com