South African Airways (SAA) Uniform

10 September 2013

SAA Uniform

Cost Effective Uniform Management including supplier relationships – contracts (penalties), working with SMME’s, suppliers

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Supply Chain Management - Procurement Procedures

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SAA focus on SMME’s

New Uniform tender to be issued 4

List of Commodities 5

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Global Supply Management - GSM

Currently SAA’s Global Supply Management (GSM) is center-led,

where strategic and operational procurement activities are taking place.

Any procurement of goods and services to the value of R500k (VAT

inclusive) to follow a three quote system.

Any procurement of goods and services where the value exceeding

R500k follows the open tender process, confinement or sole source

approach, depending on the nature of the request, will be

recommended by Cross Functional Sourcing Team (CFST).

All tenders up to the value of R1m (VAT inclusive) can be approved by

the HOD GSM

Note: SAA website SMME’s can register as potential suppliers on

our data base

http://www.flysaa.com/za/en/footerlinks/aboutUs/saa-tenders.html

Supply Chain Management - Procurement Procedures

YOUR LOGO

Global Supply Management - GSM

Preference to:

50% Black owned Businesses

30% Black Women owned Businesses

Black Youth owned Businesses

Black People with disability owned Businesses

Black People living in Rural areas

Utilise the Supplier Database as one of the vehicles to achieve the anticipated

objectives

Enterprise & Supplier Development

Local content – will channel efforts towards the increase in local content in

procurement tenders

Give advice, guidance and arrange training in areas such as management, skills,

quality, finance, procurement, marketing and production management

Assist with business planning, project and operational management

Assist with strategy setting to ensure the supplier develops and does not depend on

SAA for survival

Promote joint ventures and / or Consortia as a tool for skills development

Start-up Pay within 7 days

Encourage Diversification

SAA focus on SMME’s

YOUR LOGO Commercial in Confidence Page 5

Effective Uniform Management

YOUR LOGO Page 6

Cost Effective Uniform Management including supplier relationships

Cost Effective Uniform Management Systems

• Local market with local factory, working with our supplier base

• Alternate options for local materials in relation to our

specifications

• We alter specifications if the above changes or default to a

deviation sheet that accompanies the specification.

Supplier Relationships

• 6 weekly meetings with our key suppliers, alternate venue

(factory checks ad-hoc) include key CFST members

• Meet more frequently with problematic supplier

• SABS in-production and final sample inspection as part of the

quality control process

YOUR LOGO Page 7

Managing our suppliers through contract management

• Contract makes provision for late deliveries and poor workmanship

• Extensively working with the supplier to get the best quality, which

includes the SABS processes

• We deal with the manufacturers directly do not allow suppliers to

outsource to smaller companies as it affects quality control, always

another person in chain of events to blame. SABS approved sub

contractors if we allow them.

• Any JV’s, require BEE & TAX clearance certificate for JV as well as all

SABS documentation

• Any sub-contracting - we do not allow more than 25% outsource

Cost Effective Uniform Management including supplier relationships

YOUR LOGO Page 8

SMME’s

• Current • Small items such as pantyhose, socks and belts, aprons – follow

RFQ, concluded 2 year contracts to avoid unnecessary tender costs

for SMME’s – also include SLA and specifications

• SMME’s we are a lot more involved with them, factory visits, SABS

assistance.

Future

The above and ........

• Award tenders to SMME’s for uniform

• Requirements – SMME’s to be approved by SABS and have a

capability report from SABS

• SMME’s have capacity or award a portion of a contract to build-up

capacity

Cost Effective Uniform Management including supplier relationships

YOUR LOGO Page 9

New Uniform tender to be issued

Cabin and Ground crew (GCC) uniform

• Suiting (Jackets & Pants), Shirts, Blouses

• Smalls – pantyhose, sock, safety socks, belts, insignia, handbags

Flight Deck crew (FDC) uniform

• Shirts, blouses including maternity blouses, insignia

YOUR LOGO Page 10

LIST OF COMMODITIES

Categories Sub-categories

Corporate Services Stationery supplies and printing

Recruitment and placement services

Training and Development Specialists

Computer equipment and consumables supply

Management Consultants

Clothing and textiles

Hospitality and Media Advertising, Media and Communication

Hotel accommodation

Crew transportation

Event Coordination and Management

Exhibitions, road shows, exhibition stands

Medical

Facility Services Interior and Exterior furniture & décor & cleaning services

Cleaning products supplies

Building maintenance and repairs

Construction and office space

Signage

Ground Handling Ground service equipment

Setting up designated areas for delivery and collection of bicycles

In-flight Products and Services Catering

Food Perishable Supplies

Laundry Services

Supply and maintenance of galley equipment

Transport services Travel coordination and shuttle services

Vehicle repairs

Aircraft Interiors

Aircraft Hardware Tooling

General Aircraft Tooling

OEM Tooling

Aircraft Mechanical Systems

YOUR LOGO Page 11

Questions and Answer Session