Manufacturers join forces for sector development

In the spirit of Kyodo, automotive manufacturers Toyota South Africa Motors (TSAM) and Isuzu Motors South Africa (IMSAf) have joined forces to create a black supplier development programme for local manufacturer Algoa Components Manufacturers (ACM).

When ACM reported concerns about the future sustainability of its business, the two original-equipment manufacturers (OEM) intervened. TSAM and IMSAf have partnered with Port Elizabeth-based business hub Propella, to offer skills transfer and mentoring support to ACM.

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

At TSAM, the company values supplier relationship management and is proud to be working with its suppliers on a one-to-one basis to improve performance for the clients benefit as well as TSAM’s.

TSAM enterprise and supplier development senior manager Kim Nisbet says the company values this opportunity to work with IMSAf in jointly developing and supporting ACM and it is important to both OEMs in terms of increasing local manufactured content but more critically, it is TSAM’s responsibility to ensure the sustainability of its local suppliers.

“We also believe that skills transfer and mentoring are essential elements for ACM to build its production capacity,” she highlights.

Nisbet adds 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-sized black-owned businesses must be brought into the supply chain to help the country succeed in transformation.

Toyota’s strategy to support SAAM is clear and developing black-owned business suppliers is a priority.

IMSAf adds that it is equally committed to broad-based black economic empowerment 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 OEMs are actively supporting the long-term sustainability ofthe automotive supply chain,” says Isuzu purchasing GM Gregory Wood.

“We are confident that the collaboration will yield meaningful process improvements thereby improving on ACM’s high-quality standards and driving further cost efficiencies. We are also proactively engaged in initiatives to help grow this supplier and to this end supported ACM to showcase their production capabilities at the Naacam Show, which was held in Durban earlier this year,” concludes Wood.

During the course of the past six months, ACM has shown very good progress in terms of process and efficiency level improvements and it has further plans to improve. TSAM and IMSAf have committed to continue their support into 2020 and aim to conclude the Kyodo initiative as early as the first quarter in 2020.