Procurement Services Transformation 2012 Company Forum – 28 Feb 2013

Purpose The purpose of the presentation is to inform respective parties of the Transformation of the Procurement Services initiative, process and timelines of all the actions involved in the initiative.

Transformation of Procurement Services- Background As a result of a request by Exco to look into the transformation of Procurement Services a Task team comprising of the Heads of Procurement Services have been established. The task team will come up with areas that will be looked at, and indicate the possible impact that it may have. The possible impact will be determined during the study

Scope of the Initiative The following areas have been identified Ensure cost effective and ethical procurement; Enhance Turn Around Time; Streamline the Procurement Process; Increase the utilisation rate of e-Sourcing; Manage wastage; Warehouse and Distribution optimization; Improve customer experience; Reduce supply chain operating costs. Improve Efficiency within Procurement Services

Identification and Process - Continued The following process has been embarked upon; RFx to be prepared to request a proposal to solicit a partner for the transformation of Procurement Services which will include the areas as per slide 4 of this presentation Load balancing models to be developed for all functions with in Procurement Services

Impact on Resources The impact on the resources for fixed and mobile at this stage cannot be quantified, however the following should be taken into account Rebalancing (move) of over and under utilization of staff Impact of NGNEC stock levels Impact on warehouse locations

Timelines Current high level timelines have been identified as follows, Identify areas to be transformed and prepare documentation to go out with a RFx – end February 2013 Appoint Vendor as per RFx requirements – end March 2013 Prepare / compile load balancing models – end February 2013 Finalise and do rebalancing – end March Overall transformation – Based on outcome of appointed Vendor

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