The Namibia Economist

NBL aims for 30% local sourcing by 2017

Namibia Breweries Limited (NBL) this week announced its strategy of growing local businesses through outsourcing and procurement, in line with the O&L Group’s purpose of creating a future, enhancing life.
The brewer has set itself the ambitious target of sourcing at least 30% of goods and services from local suppliers by 2017.
According to the managing director, Wessie van der Westhuizen, outsourcing of non-core activities to specialists is a win-win situation in that it ensures operational excellence by employing absolute experts in all areas. It allows the Breweries to maintain focus on core activities, it frees up capacity, and it supports the development of further enterprises which in turn fosters a healthier trade environment. Furthermore, specialist service providers are often in a better position to negotiate for better pricing from the nature and size of their business, which is beneficial to everyone in the long run.
Van der Westhuizen said, the company has an open tender policy, where potential suppliers are invited via an advertisement in the newspaper or on a Request For Quotation (RFQ) basis.  Namibian businesses, SMEs and BEE companies are given preference except where evidence exists that a supplier cannot satisfactorily meet the requirements.
“Price alone is not a reason for accepting a local or external supply offer. The acceptance of an offer by a supplier will be subject to various factors such as the supplier’s ability to demonstrate best value, competitive prices, availability and favourable timelines, good corporate citizenship, and ability to supply the goods or service to specification. With all things equal, if we can procure locally we do so as this provides more Namibians with jobs and opportunities to improve their socio economic quality of life.  Currently, NBL spends more than four hundred million per year on local spent,” he said.
NBL has service level agreements with local suppliers for site maintenance (welding, repair, horticultural), advertising services, catering, and travel. Supply agreements are also in place with Namibian suppliers such as Plastic Packaging, Mpact as well as companies supplying transportation, security, stationery, freight services and an external caterer that supplies NBL staff with meals.
The barley project initiated by NBL, which is currently in its second year of trials for feasibility, is just another avenue where NBL is trying to grow its local procurement footprint and in so doing support more local businesses.

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