Supply Chain Management

Letsema’s supply chain expertise and experience spans across multiple sectors and industries, which has resulted in reduced operational costs, delivery of bottom line savings and maximised efficiencies for numerous clients.

Our experience is showcased across strategy development all the way through to the implementation and support phase of the supply chain functions, being; demand management, procurement and inventory management.

We have successfully delivered value across the supply chain through client engagements including the following:

  • Support delivering high value procurement transactions;
  • Cost reduction and savings extraction;
  • Supply chain restructuring and implementation;
  • Structure and monitor enterprise and supplier development;
  • Supply chain benchmarking and best practice;
  • Supply chain planning and optimisation; and
  • Supply chain capacitation and training.

Four key areas of Letsema’s Supply Chain Management:

Supply chain optimisation

Letsema has supported over 30 Supply Chain projects over the last 5 years. Our consultants have the capability and experience in implementing the supply chain solutions.

  • 40% of supply chain restructuring projects fail due to lack of ownership or clarity of scope
  • Your supply chain directly impacts all the other business functions
  • Your head of supply chain has 60% chance of failure if not placed at an executive level
  • Your supply chain operating costs are at least 16% of your organisation operating expenditure
  • People, processes and systems are your key enablers to your supply chain
  • Supply chain optimisation can reduce your operating costs by up to 10%

Saving initiatives

Three key saving initiatives which Letsema focuses on:

  1. Strategic sourcing
  2. Spending review
  3. Capital Scrubbing

Some results of Letsema’s saving initiatives include, 25% saving on a R5.7 billion transaction, 20% increase spend in supplier development, improved transparency through best practice procurement methodologies and increasing sourcing efficiencies from 6 to 2 months.

Enterprise & supplier development

Letsema’s approach to enterprise and supplier development considers environmental factors, corporate strategy, transactional details and best practice.

We have supported over 20 Economic and Supplier Development projects in manufacturing and energy, converting policies such as NIP, PPPFA and B-BBEE into real workable economic and supplier development projects

Economic and Supplier Development focuses on growing the local economy using Local Content, Preferential Procurement, Skills Development, Industrialisation and Supplier Development

Capacitation & Training

Letsema uses the SWAT approach for training, capacitating and immediate impact which functions across the entire organisation.

The Impact we have achieved through SWAT:

√ days saved in procurement of ~R42bn in transactions

√  first time approval of procurement strategies and documentation

√  in volume throughput on a rail improvement project

√ unprecedented level of sill transfer

Case Studies

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