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Impact on suppliers |
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We procure a wide range of products and services from suppliers and contractors across all our businesses. These relationships are governed by contracts and service level agreements designed to deliver on our business objectives. Local management has the autonomy to procure from their area of operation, in line with Imperial’s decentralised management approach. Through our transformation policy we encourage businesses to spend a portion of their procurement budget on local suppliers and to invest in enterprise development initiatives to grow small businesses in their up- and down-stream industries. In some of our divisions, preferential procurement in accordance with B-BBEE codes exceeds 50% of the total discretionary procurement budget. Imperial’s drive towards local procurement is balanced by the need to establish secure, reliable, cost-effective supply chains that conform to high standards of quality and delivery. This is critical to our ongoing sustainability as a business and the delivery of value to all stakeholders. Some businesses within our divisions – such as those involved in selling and distributing vehicles – rely on particular suppliers for their products, and local procurement is not always possible in these operations. These businesses look for other opportunities to procure non-core products and services from local and black-owned businesses. Enterprise developmentMany of our motor vehicle dealerships offer rent-free space to small business contractors who provide wash bay and canteen services, while other small enterprises benefit from early settlement and favourable payment terms. Europcar has helped small black business owners to establish car rental agencies in Bela Bela, Mafikeng, Mogale City, Venda and Newcastle. Each year the company invests around R8,8 million in providing training programmes, technical and other assistance, expert or specialised advice and information and guidance on running a successful car rental company. The vehicle fleet – which represents the biggest capital outlay and therefore the biggest hurdle to entry for a start-up car rental agency – is supplied by Europcar. These businesses benefit from the strength of the global Europcar brand and its established processes and systems. Regent Insurance has invested in a number of small businesses including catering companies, panel beaters, eco carwash enterprises and printing services, among others. Regent Insurance has made some significant investments in Enterprise Development Initiatives (EDI). Some of the major investments include funding of an EDI printing business as well as funding for panel beating businesses. These EDI’s spend for the reporting period were around R3.5 million.
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