Omnia Holdings Limited and Transformation
Posted by Daniel Makhura on 11 October 2017 11:55 AM SAST
Information about the above
Omnia favours the procurement of products and services
from BBBEE suppliers. The total measurable procurement
spend with suppliers, as per the amended DTI BBBEE codes,
was approximately R11 billion (2016: R8 billion) of which 46%
(2016: 70%) qualified as BBBEE procurement spend with all
empowering suppliers using the BBBEE recognition levels. The
decline was largely influenced by the higher target requirements
set by the new codes, which affected most suppliers.
Omnia is working towards achieving the new key targets
as stated in the updated Codes of Good Practice, which
require an 80% spend on suppliers that qualify as BBBEE
empowering suppliers. Most suppliers to Omnia are required
to be verified and meet the minimum BBBEE requirements.
To ensure a consistent supply chain, the Group has centralised
procurement practices at divisional levels and has improved
Omnia’s collective buying power. A large portion of the overall
procurement spend at Omnia is on raw materials used in
the manufacture of the business’s various products. Many
of these products are specialised and can only be obtained
from specific local or international suppliers. As a result, these
suppliers do not fall within the requirements for preferential
procurement or the BBBEE codes and are excluded for the
purposes of these calculations.
Omnia has, however, achieved the full target percentage
spend (13.5%) with supplier development beneficiaries (a new
category under the new codes) and the full target percentage
spend (2.2%) with enterprise development beneficiaries. This
was achieved through the various initiatives undertaken by
Omnia’s emerging farmer programme.