Automakers join hands to develop black-owned supplier

20 November 2019 | Web Article Number: ME201917182

Automotive
Automakers join hands to develop black-owned supplier

DURBAN-headquartered Toyota South Africa Motors (TSAM) and Isuzu Motors South Africa have joined forces in a Black Supplier Development program with Algoa Components Manufacturers (ACM).

When the Port Elizabeth-based, black-owned supplier of fuel fillers, side impact beams and instrument panel carriers reported concerns about the future sustainability of its business, the two original equipment manufacturers (OEM) intervened. TSAM and Isuzu have partnered with Propella, a Port Elizabeth-based business hub, to offer skills transfer and mentoring support to ACM.

The mentoring process is well underway in a bid to improve ACM’s production capacity as well as its future business sustainability. TSAM and Isuzu have committed to assist ACM in the overall improvement and optimisation of product process flows, plant layout, space utilisation and the determination of material and manning standards – all in support of creating a more efficient production system.

Senior Manager of Enterprise and Supplier Development at TSAM Kim Nisbet, said, “We value supplier relationship management and are proud to be working with our suppliers on a one-to-one basis to improve their performance for their benefit as well as ours.”

Nisbet added that in order for the local automotive industry to comply with the South African Automotive Masterplan (SAAM), local content needs to be increased from just under 40% to 60% over the next few years, and small and medium black-owned businesses must be brought into the supply chain to help the country succeed in transformation.

Gregory Wood, General Manager of Purchasing at Isuzu Motors South Africa said the OEM was equally committed to broad-based black economic empowerment (BBBEE) and embraces opportunities to accelerate the transformation of the automotive value chain.

“We are fully committed to the upliftment, transformation and growth of our country’s economy. We should always remember that an economy cannot grow by excluding people and that an economy which is not growing, cannot integrate all of its citizens in a meaningful way. It is thus vital that Original Equipment Manufacturers are actively supporting the long-term sustainability of the automotive supply chain.”

The two companies said that during the course of the past six months, ACM had shown good progress in terms of process improvement, efficiency levels and have further plans to improve. They have committed to continue their support into 2020 and aim to conclude the initiative as early as the first quarter in 2020.

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