The Development Impacts of Tourism Supply Chains: Increasing Impact on Poverty and Decreasing Our Ignorance - Responsible Tourism: Critical Issues for Conservation and Development - page 120

Table 6.5 Average supplier scores by category, by Spier business unit

Category Spier Leisure Winecorp De Zalze Average

Labour law compliance 86.07 77.98 80.14 81.40

HR practice 74.17 75.20 82.18 77.18

BCEA 65.43 70.83 65.78 67.35

H&S compliance 44.31 58.17 46.53 49.67

Employment equity 59.91 34.77 48.20 47.63

BEE & empowerment 33.82 17.02 28.08 26.31

Affirmative procurement 19.61 8.33 29.42 19.12

CSI 13.58 15.00 28.06 18.88

Ecological issues 15.99 23.03 10.83 16.62

Average score 45.88 42.26 46.58 44.91

Spier Business Score 72.24 62.56 67.53 67.44

Note: HR = human resources, BCEA =Basic Conditions of Employment Act, H&S = health and safety, BEE =
black economic empowerment; CSI = corporate social investment

Taking action to reform the supply chain
The process of reviewing the supply chain led to a number of changes at strategic
and operational level in Spier, and ultimately in the supply chain.
The first change was that the supply chain analysis enabled Spier to adapt its
overall strategy for sustainability, focus heavily on procurement and set rigorous
criteria and targets for shifting procurement. The survey results created a broad
understanding of the supply chain within the company. The supply chain tool is
now a fundamental part of the procurement process and is used to evaluate every
new supplier. Old suppliers have not been dropped, but new suppliers all need to
achieve a certain, predetermined score. In the past, price and quality were the only
factors considered in the decision-making process. A number of suppliers have
been selected recently, not due to price, but rather due to the fact that their values,
reflected in the supply chain survey, better reflect the values of Spier. In a number
of instances, these suppliers were more expensive than alternatives.
Significant results are already evident in the shift from regional to local
procurement over four years, as shown in Figure 6.6. The percentage of procure-
ment spend going to local suppliers has more than doubled.
In addition to this, the percentage of suppliers that are BEE (more than 25 per
cent black ownership) businesses has also more than doubled, as reflected in
Figure 6.7. The trend for PDI suppliers is even steeper, though starting from a
lower base.
Secondly, Spier has invested time and effort in stimulating some new small
black and local suppliers, and further adapted its procurement approach to assist
them. The Spier input here goes beyond simply changing the selection criteria,
and involves mentoring, innovative financing and pro-active searching for small
black suppliers.