Vendor and supplier evaluation and assessment practice for the steel industry and the effect it has on operations
Abstract
The purpose of this study is to understand the impact BBBEE vendors have on the
operations of companies within the large steel manufacturing industry. In Chapter
one all the necessary prerequisites discussed that are needed to become a vendor
on the database of large steel manufacturing companies. Chapter two was narrowed
down with the emphasis being placed on BBBEE vendors and the different rules and
regulations for complying.
A quantitative research approach was followed which entailed for plant employees
within the large steel manufacturing industry and vendors that rendered a service to
the industry to complete a questionnaire. Out of the results of the two questionnaires
it was evident that the standard of BBBEE vendors are not up to date and that there
are certain risks by making use of a BBBEE vendor. Incubators will form an integral
part of the development of BBBEE vendors. Funds will be needed to start up
incubators which will give the relevant vendors the skills and technical expertise to
form part of the success of a company. The relationship between the vendors and
the industry needs to receive urgent attention as the vendors are not confident to
approach the companies with their problems.
Another shortcoming showed by the study is that the internal non-conformance
system does not provide any support in rectifying problems faced by the plants on a
daily basis. This system must be improved to ensure that the quality of service is up
to standard and any hick-ups will be removed from the manufacturing process.
The perceptions of the plant personnel are definitely an aspect that needs to be
changed. Therefore, a change management programme will be beneficial for the
industry as most of the employees within the industry feel that BBBEE is only
advantageous because it is a prerequisite by the government and grants might be
obtained by complying.