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  • January 2, 2022

Zinhle Dube on what makes the world go round

Image credit: Zinhle Dube, managing partner and CEO at Smukeliso Sourcing Solutions.

"For our fourth article in the series about women in the supply chain, WhyAfrica interviewed Zinhle Dube, managing partner and CEO at Smukeliso Sourcing Solutions about the opportunities, challenges, and outlook of supply chain management in Africa."
- By Leon Louw, founder and editor of WhyAfrica

Case Studies

This section showcases real-world examples of how our sourcing solutions have successfully addressed client challenges. Each case study outlines the specific issues encountered, the customized strategies employed, and the measurable outcomes achieved.

Client Challenge
In 2019, a prominent mining client sought our expertise to address a complex challenge related to community development through supply chain and community supplier development. The client faced difficulties not only in creating supply chain opportunities for local businesses but also in identifying actionable opportunities within their existing supply chain that could be implemented in the short term. These challenges were critical for improving the social relevance of their operations, addressing community concerns, and enhancing compliance with the Enterprise and Supplier Development (ESD) targets mandated by the Mining Charter.

Our Scope
To tackle these challenges, we implemented a comprehensive approach:
  1. Market Research on ESD Strategies: We began by conducting an in-depth market research focused on ESD (Enterprise and Supplier Development) strategies within the mining industry. This research provided valuable insights into industry best practices and allowed us to tailor our approach to the client's specific needs.
  2. Internal Spend Analytics: We performed a thorough internal spend analysis, examining over R1 billion in expenditures within the mining house's supply chain. This analysis helped us identify key opportunities for ESD within their operations, ensuring that the identified opportunities were not only relevant but also implementable in the short term.
  3. Development of ESD Strategy: Based on our research and analysis, we developed a high-level ESD strategy designed to support the operationalization of ESD plans. This strategy provided the client with a clear roadmap for integrating ESD initiatives into their supply chain, fostering community development, and meeting the compliance requirements of the Mining Charter.

Client Benefits
As a result of our engagement, the client experienced several significant benefits:
  • Improved Community Relations: By identifying and implementing short-term ESD opportunities, the client was able to address community concerns more effectively, improving their social relevance and fostering stronger relationships with local communities.
  • Enhanced Compliance: The tailored ESD strategy enabled the client to meet and exceed the Enterprise and Supplier Development targets required by the Mining Charter, ensuring compliance with industry regulations.
  • Strategic Advantage: The high-level ESD strategy provided the client with a clear path forward, allowing them to strategically align their supply chain operations with broader social and regulatory objectives. This alignment not only improved their community impact but also positioned them as a leader in sustainable mining practices.

Client Challenge

An investor approached us with the intent to provide funding lines to a mid-tier market asset finance company. The client required a thorough understanding of the target company’s financial health, strategic alignment, and risk management practices to ensure the investment would be sound and sustainable. The challenge was to assess not only the financials but also the effectiveness of the funding structure and the overall viability of the target company's business model.

Our Scope
Smukeliso was engaged to enhance the client’s commercial team of advisors and specialists over a 12-month period. To meet the client’s needs, we partnered with a corporate finance firm responsible for the financial due diligence. Smukeliso’s role was to conduct a comprehensive commercial due diligence (DD) that covered several critical areas:

  • Funding Structure Evaluation:
    We analyzed the effectiveness of the proposed funding structure to ensure it supported the target's long-term strategic goals.
  • Corporate Strategy and Operating Model:
    We assessed the target company’s corporate strategy and operating model to determine their alignment with the funding objectives and market conditions.
  • Capital Structure and Shareholders Commitment:
    A review of the capital structure and the commitment of shareholders was conducted to evaluate the financial stability and potential risks associated with the investment.
  • Key Customers and Third-Party Supplier Agreements:
    We examined the relationships with key customers and third-party suppliers, assessing their impact on the target’s business continuity and growth prospects.
  • Risk Management Processes:
    We evaluated the target company’s risk management processes to identify potential vulnerabilities that could affect the sustainability of the investment.
  • Asset-Finance Market Overview:
    A thorough market analysis was conducted to provide insights into the asset-finance sector, helping to contextualize the target’s performance within the industry.
  • Product Offering Alignment:
    We reviewed the target’s product offerings in relation to its business model to ensure that the products were well-positioned to support long-term growth and value creation.

 

Client Benefits

The comprehensive commercial due diligence provided several key benefits to the client:

  • Risk Identification and Mitigation:
    The due diligence process highlighted critical risks that required immediate attention, enabling the client to take proactive measures to mitigate these risks before finalizing the investment.
  • Value Creation Opportunities:
    The analysis also uncovered potential opportunities for value creation that could enhance the target’s product lines and overall business performance, ensuring the sustainability of the investment.
  • Informed Investment Decision:
    With detailed insights into the target company’s operations, financial health, and market positioning, the client was able to make a well-informed investment decision, confident in the knowledge that the investment was strategically sound.

Client Challenge
This project was conducted under the Sasol Foundation Trust for Education Projects, focusing on two non-profit organizations (NPOs) that deliver educational programs in the communities of Secunda and Sasoburg. One of these entities was established by Sasol specifically to implement education programs on behalf of the Sasol Foundation, fulfilling part of its corporate social responsibility (CSI) mandate.

The challenge faced by our client was twofold: turning around the operational and financial management of these NPOs to enhance their sustainability and reducing their dependence on Sasol as their sole funder. The goal was to ensure that these organizations could continue to fulfill their missions independently, while also delivering value to their communities.


Our Scope
Our scope of work involved developing and implementing comprehensive turnaround strategies for both NPOs. These strategies focused on several critical areas:

  1. Strategic Planning: We developed an outcome-oriented strategic plan for each NPO that extended beyond mere programmatic success. This plan guided the direction, goals, and objectives of the organizations, ensuring alignment with long-term sustainability goals.
  2. Funding Strategy: We established a consistent financial base for the NPOs, reducing their reliance on the Sasol Foundation. This involved identifying and securing diversified funding sources to ensure financial stability.
  3. Financial Management Strategy: We ensured that the institutional financial arrangements of the NPOs were managed effectively, with robust financial controls and processes in place to support sustainable operations.
  4. Organizational Capacity: We designed an organizational structure and operating model that optimized resource management, ensuring that the NPOs could operate efficiently and effectively.
  5. Leadership and Governance: We developed a governance framework that provided clear segregation of duties and managed strategic, tactical, and operational risks. This framework was essential for ensuring transparency, accountability, and effective decision-making.
  6. Monitoring and Evaluation (M&E): We implemented a comprehensive M&E framework that not only tracked the success of the programs but also ensured accountability for results across all initiatives. This framework was integral to driving continuous improvement and demonstrating impact to stakeholders.


Client Benefits

The diagnostic assessment of the two NPOs, conducted prior to the design of the turnaround strategies, provided the client with critical insights into the value of their programs. It also allowed for benchmarking against other STEMI (Science, Technology, Engineering, Mathematics, and Innovation) programs, helping to determine the relevance of these initiatives for the target communities.

Key benefits delivered to the client included:

  • Stakeholder Framework: We formalized a stakeholder framework that enhanced communication, partnerships, and relationship-building across all stakeholders. This framework was pivotal in fostering stronger, more collaborative relationships with various partners and community members.
  • Holistic NPO Strategy: The turnaround strategies we developed provided a comprehensive approach to NPO sustainability. They recognized that while programmatic strength is vital, organizational effectiveness, sustainable funding, governance, management capacity, and financial management are equally critical to the long-term success and sustainability of the NPOs.
Client Challenge
A large industrials corporation faced significant procurement challenges as part of a broader business transformation initiative. The company's existing operating model was misaligned, failing to address core procurement functions effectively. This misalignment resulted in several critical issues, including savings value leakages and poor supplier contract compliance. These challenges were obstructing the company's ability to optimize its procurement processes and achieve its desired business outcomes.

Key activities included:
  1. Operating Model Realignment: We worked on realigning the procurement operating model to ensure it addressed the core functions effectively. This involved restructuring processes and systems to eliminate inefficiencies and better support the company’s procurement objectives.
  2. Savings Value Optimization: By identifying and closing gaps in the procurement processes, we helped the client prevent savings value leaks. This allowed the company to capture the full potential of its procurement activities and maximize cost savings.
  3. Supplier Contract Compliance: We developed and implemented strategies to enhance supplier contract compliance, ensuring that agreements were adhered to and that the company benefited fully from its supplier relationships.

Client Benefits
The outcomes of our Procurement Transformation Project were significant and provided the client with several key benefits:
  • Enhanced Operational Efficiency: The realigned operating model enabled the client to address core procurement functions more effectively, resulting in smoother and more efficient operations across the board.
  • Increased Cost Savings: By plugging the savings value leaks, the client was able to achieve substantial cost savings, which contributed directly to their bottom line.
  • Improved Supplier Management: Strengthened supplier contract compliance ensured that the company could fully realize the benefits of its supplier agreements, leading to improved relationships and better overall procurement outcomes.
  • Strategic Alignment: The Procurement Transformation aligned the procurement function with the company’s broader business transformation goals, supporting long-term growth and competitiveness in the diversified industrials sector.
Client Challenge
Our client, a burgeoning investment company with ambitions to evolve into a global investment holding firm, faced a critical challenge in their growth journey. They were considering the acquisition of a significant asset within the industrials manufacturing sector. However, before proceeding with a best and final offer, they needed to ensure the commercial viability of the target asset. This required a comprehensive commercial due diligence (DD) to assess the asset’s potential, uncover any underlying risks, and identify areas for value creation.

Our Scope
To support the client in making an informed investment decision, we undertook a rigorous commercial due diligence process, focusing on the following key areas:
  1. Market Position and Dynamics: We thoroughly reviewed the business's market position, customer base, and the broader market dynamics. This analysis was crucial in understanding factors that could either bolster or threaten the business model and continuity of the asset.
  2. Risk Assessment and Value Creation: We identified potential risks, inefficiencies, and value leaks within the business. Our team also pinpointed opportunities for value creation and improvement across various commercial functions, ensuring that the client could maximize the asset's potential post-acquisition.
  3. Process, Procedure, and System Evaluation: We assessed the robustness of the business’s processes, procedures, and systems that directly impact its commercial strategy. This evaluation was essential in determining the effectiveness and sustainability of the business model, providing insights into areas that could be optimized.

Client Benefits
Our comprehensive due diligence provided the client with several strategic advantages:
  • Preliminary Commercial DD Report: The client received a detailed preliminary commercial due diligence report, which served as a critical decision-making tool. This report highlighted the key findings from our analysis, including risks, opportunities, and the overall commercial viability of the asset.
  • Market Research Insights: The market research we conducted offered the client valuable insights into the competitive landscape, customer dynamics, and market trends. These insights were instrumental in understanding the external factors that could impact the asset's future performance.
  • Project Risk Log: We provided a thorough project risk log, outlining potential risks and mitigation strategies. This log enabled the client to proactively manage risks associated with the acquisition, ensuring a smoother integration and long-term success.
Client Challenge In 2018, a diversified industrials client faced challenges in optimizing their customer, sales, and dealer agreements across various sectors, particularly within the mining industry. The client needed a streamlined approach to contract management that would not only enhance operational efficiency but also align with Enterprise and Supplier Development (ESD) objectives. Additionally, the client sought to integrate ESD goals into their procurement and supplier agreements and required ongoing support in managing contract-related activities, including profitability analysis and price escalations. Our Scope We partnered with the client to deliver comprehensive support across several critical areas:
  1. Development of a Contracting Playbook: We created a comprehensive contracting playbook, incorporating best practices in contract management frameworks and processes. This playbook served as a guide for the client’s teams, ensuring consistent and efficient management of customer, sales, and dealer agreements.
  2. Integration of ESD Objectives: We integrated the client’s customer agreements within the mining sector with their ESD objectives, ensuring that procurement supplier agreements were aligned with regional ESD strategies. This integration was crucial for operationalizing ESD plans and meeting regulatory requirements.
  3. Profitability Model Advisory: Our team provided strategic advisory services on profitability models for the client’s mining contracts. This included analysis and recommendations to optimize contract terms and ensure sustainable profitability.
  4. Ongoing Contract Management Support: We offered day-to-day support in various contract management activities, including:
    • Contract Drafting: Assisted in drafting contracts to ensure they were aligned with the client’s strategic goals.
    • Price Escalations Management: Managed contract price escalations to mitigate financial risks and maintain profitability.
    • Contract Monitoring: Conducted regular monitoring and evaluation of contracts, with a particular focus on the effectiveness of ESD operational plans.
  Client Benefits Our involvement in the project provided the client with several significant benefits:
  • Streamlined Contract Management:The contracting playbook enabled the client to standardize and optimize their approach to contract management, leading to more efficient and effective operations.
  • Enhanced ESD Compliance:By integrating ESD objectives into customer and supplier agreements, the client was able to operationalize regional ESD strategies, enhancing compliance and contributing to community development goals.
  • Improved Profitability:Our advisory on profitability models for mining contracts helped the client optimize their financial outcomes, ensuring that contracts were both commercially viable and aligned with long-term business objectives.
  • Ongoing Operational Support:The continuous support we provided in contract drafting, price escalation management, and contract monitoring ensured that the client could proactively manage their contracts, reduce risks, and maintain control over contract performance.
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  • consult@smukeliso.com
  • 155 West St, Sandown, Sandton, 2031