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Safaricom Sustainability Report 2016








Supplier performance evaluations - score





Performance evaluations- number of participating suppliers





This year, the automation of the performance management enhanced the process and the number of suppliers

evaluated increased by 137% compared to the previous period (FY15). This was majorly due to automatic notifications,

follow ups and ease of evaluations once the user has been given access credentials.

Supplier Portal Upgrade

Safaricom implemented three modules within Oracle ERP to address the concerns that our partners have raised in the


On payments, we implemented iSupplier portal specifically for supplier interactions. We trained and registered the 170

suppliers that had the highest number of purchase order (PO) transactions with Safaricom. These partners are now able to:


view all approved POs;


view all POs for goods/services for which Safaricom has confirmed delivery;


create and submit own invoices directly into the accounts payable module of Safaricom and;


view the status of their invoices and payments.

As a result, the accounts payable average payment days reduced from 69 days in the 3


quarter of FY15 to 18 days at

the close of FY16.

The iSourcing module was also implemented for online tendering. This has introduced more transparency to the way we

interact with our partners on acquisition of goods and services.

Finally, Safaricom implemented a Supplier Lifecycle management module for all prospective suppliers. The module was

deployed on the Safaricom internet page, making it possible for all prospective suppliers to express their interest without

going through a lengthy process.

Procurement policy revisions

During the year, we revised our Purchasing Policy to include Diversity and Inclusion sections; for example, special group

suppliers identified for purposes of diversity and inclusion (this is applicable to Kenyan companies/citizens only) include:

Youth; Women; and Persons with Disabilities. The policy document is pending final approval before it is circulated for


Supplier risk assessments

Supply chain and Enterprise risk teams partnered to undertake risk assessments for the top 10 key suppliers selected

from each of the four spend categories (Services, Networks, IT VAS and Terminals). The objectives were to identify,

measure and apply mitigation plans for all supply chain risks and effectively evaluate the completeness of controls in

place. Seven suppliers were fully assessed during the year and three are currently undergoing assessment.


We delivered value to our dealers in the following ways during the year:

Relationship Managers

We introduced dealer Relationship Managers (RMs) in FY14. The RMs provide each dealer with a single point of contact

to assist them with any challenges or issues they are facing. The RMs also put together business plans for each dealer to

help them identify areas for improvement and potential growth.

Principle Forums

This is an ongoing initiatives and we host several Dealer Forums each year. It is an excellent opportunity for us to listen to

dealers as they share their concerns, needs and ideas for ways in which we can improve our services and support them

further. Our RMs were an idea that came out of a forum, for instance.

Customer Care Desks

We opened 54 ‘care desks’ at dealer premises across the country to assist with the handling of customer care queries

and the provision of services.