The Supplier Development Programme was established by Massmart to improve local procurement with new and existing small businesses, from farming to manufacturing, to establish sustainable trade linkages within the group. Of the 27 manufacturing suppliers on the programme, 17 are listed with Massbuild in categories ranging from building materials and bricks to general merchandise.
Let us take a look at some of the businesses, fostered through the programme, that currently have supply contracts with Builders Warehouse.
Harry Montjane, owner of Kurhula Paint, has been a Builders Warehouse paint supplier for four years. “I had been in the paint manufacturing industry since 1989, but in 2006 I decided to start my own business. I saved up for a machine that could produce 200 litres of paint a day and approached Builders Warehouse for a contract to supply one of their stores for one year. The contract was renewed at the end of the year, making it possible for me to buy a bigger machine, one that could produce 1 000 litres per day”.
Within three years, Builders Warehouse was placing orders for four more stores, followed by another 14 stores the following year. Today, Montjane employs four staff and estimates that, as he grows, he would be able to hire another two fulltime employees. In addition to the repeat business from Builders Warehouse, he has also received support in the form of training at the GIBS Enterprise Development Academy. This has empowered him with vital skills in business management, cash flow management, financial management and marketing.
XCHem Chemicals is a 100% black woman-owned business that manufactures adhesive glues and sealants. Owner and Cambridge University graduate, Angela Chris Pitsi says “our business grew substantially from literally no presence in the country to national presence through Builders Warehouse outlets. Our brand was also fortified significantly through this exposure”. The Pretoria-based company’s products are sold in all local Builders Warehouse stores and in one Mozambique outlet.
The programme has also provided funding for the company to upgrade its equipment, take its employees through quality control training as well as rebrand and repackage its products to be CPA compliant.
Based in Stutterheim in the Eastern Cape, Ikusasa Green is a 70% black-owned cooler box manufacturer. The company produces roto-moulded cooler boxes under Massmart’s private label brand – Camp Master. Since joining Massmart’s Supplier Development Programme two years ago, the company has managed to establish a fully-functioning factory that employs 30 staff. These youths, employed directly from the streets, each support an average of five dependents, which has a significant positive impact on the welfare and economy of the small town.
In 2014, Ikusasa Green began manufacturing 45 and 60 litre roto-moulded cooler boxes for Camp Master. The company now supplies Massbuild with three cooler boxes and an additional design, a new 50 litre injection moulded economy cooler box, was commissioned by Massmart last year.
Confidence in the brand and the growing relationship with Massbuild has led Ikusasa Green to expand its operations to the Dimbaza Industrial area in the Eastern Cape. The area was a booming industrial park until the late 1990s, but due to rising crime and unemployment, degenerated into one of the worst poverty-stricken areas in the region. The Provincial Department of Economic Development has stepped in to partner with Ikusasa to revitalise the area and improve the socio-economic circumstances of the people of Dimbaza. Ikusasa’s new operation is estimated to create 20 jobs, which has the potential to double once the factory is functioning at full capacity.
Based in Silverton, Pretoria, The Lamp Factory is one of Massbuild’s specialist lamp shade and base manufacturers countrywide. Last year, the company received further funding from the programme towards product and production line improvement. This investment has made it possible for The Lamp Factory to retain more than 90% of their total production in-house, minimising the previous dependency on component suppliers which delayed their ability to achieve a 100% fill rate.
EJ Trading is a houseware detergents manufacturer based in Modderfontein, Gauteng. Their brand, Reino, is retailed through Massbuild stores around the country and has experienced steady sales growth, contributing 70% of their overall sales. The association with the Supplier Development Programme has also resulted in the successful completion of OHS, Hazchem, Walmart and ISO compliance which meet overall compliance with Massmart ethical sourcing and CPA requirements.