Our Approach with our Suppliers

Gerald Mugabi

HEAD OF PROCUREMENT AND DISPOSAL UNIT

Our Approach with our Suppliers

Gerald Mugabi

HEAD OF PROCUREMENT AND DISPOSAL UNIT

One of the most publicised impacts of the global Covid-19 pandemic was in China, the “world’s factory”, and the subsequent global knock-on effect. There has been a huge slowdown in global production and challenges have arisen around supply and logistics capabilities globally. According to the recent Dun & Bradstreet Report issued on 12th May 2022, more than 600,000 businesses worldwide rely on Russian and Ukraine suppliers, with just over 90% of them based in the US.

One of the most publicised impacts of the global Covid-19 pandemic was in China, the “world’s factory”, and the subsequent global knock-on effect. There has been a huge slowdown in global production and challenges have arisen around supply and logistics capabilities globally. According to the recent Dun & Bradstreet Report issued on 12th May 2022, more than 600,000 businesses worldwide rely on Russian and Ukraine suppliers, with just over 90% of them based in the US.

Robust procurement processes

These disruptions necessitated that the Fund adopts more robust procurement processes; we implemented a strategy to capture supplier tier details to help establish which providers are fit for nearshoring and entered framework contracts with them to ease service delivery, and for complex projects, we made use of joint ventures or sub-contracting with providers from both near and far so that the transfer of knowledge from such assignments improves local expertise.

Electronic Government procurement

In Uganda, the amended PPDA Act 2021 has enabled the use of Electronic Government Procurement (EGP) to handle all procurement and disposal transactions. Our suppliers can now receive and respond to business opportunities from the comfort of their homes. The amendments have further enabled negotiations with bidders for better contract terms and reduced costs.

Robust procurement processes

These disruptions necessitated that the Fund adopts more robust procurement processes; we implemented a strategy to capture supplier tier details to help establish which providers are fit for nearshoring and entered framework contracts with them to ease service delivery, and for complex projects, we made use of joint ventures or sub-contracting with providers from both near and far so that the transfer of knowledge from such assignments improves local expertise.

Electronic Government procurement

In Uganda, the amended PPDA Act 2021 has enabled the use of Electronic Government Procurement (EGP) to handle all procurement and disposal transactions. Our suppliers can now receive and respond to business opportunities from the comfort of their homes. The amendments have further enabled negotiations with bidders for better contract terms and reduced costs.

Leveraging technology

The Fund managed to sustain its operations amidst the challenging landscape thanks to its investment in technology.

This was reflected in the Fund’s:

Leveraging technology

The Fund managed to sustain its operations amidst the challenging landscape thanks to its investment in technology.

This was reflected in the Fund’s:

Supplier contracts

In FY 2021/22, we reduced the cost of acquisition of works and services by UGX 18Bn facilitated by aggressive negotiations, market intelligence, and open competition.

The major projects awarded this year were worth UGX 73Bn. These were Consultancy Services for Bwebajja Government Campus, procurement of Land in Gulu, Green Certification Services for Pension Towers, and the supply and installation of secondary database hardware.

Quality of our relationship with suppliers

We have consistent standards and procedures for the onboarding and use of external suppliers. We require suppliers to meet our compliance and financial stability requirements. We consider on-time payment to be of paramount importance and our commitment to paying our suppliers is in line with our local requirements.

Our suppliers provide us with vital resources, expertise and services to help us operate our business effectively. We work with our suppliers to ensure mutually beneficial relationships. In some cases, our suppliers will also be our customers.

The Fund attained a 98% supplier satisfaction rating at the NSSF Suppliers Forum. The supplier capabilities we hope to enhance because of the supplier engagements include supplier collaboration, optimisation of technology and institution of supplier clinics.

Supplier contracts

In FY 2021/22, we reduced the cost of acquisition of works and services by UGX 18Bn facilitated by aggressive negotiations, market intelligence, and open competition.

The major projects awarded this year were worth UGX 73Bn. These were Consultancy Services for Bwebajja Government Campus, procurement of Land in Gulu, Green Certification Services for Pension Towers, and the supply and installation of secondary database hardware.

Quality of our relationship with suppliers

We have consistent standards and procedures for the onboarding and use of external suppliers. We require suppliers to meet our compliance and financial stability requirements. We consider on-time payment to be of paramount importance and our commitment to paying our suppliers is in line with our local requirements.

Our suppliers provide us with vital resources, expertise and services to help us operate our business effectively. We work with our suppliers to ensure mutually beneficial relationships. In some cases, our suppliers will also be our customers.

The Fund attained a 98% supplier satisfaction rating at the NSSF Suppliers Forum. The supplier capabilities we hope to enhance because of the supplier engagements include supplier collaboration, optimisation of technology and institution of supplier clinics.

Outlook for the year ahead

Our focus for the financial year will revolve around:
  • Procurements for the implementation of the new products approved as the result of the NSSF Amendment Act 2022
  • Embedding sustainability initiatives in procurement
  • Reservation of business to local providers and promoting of the SMEs
  • Automation of the contract management module
  • Provision of innovative solutions to further improve the procurement efficiency, and service delivery as we continue to be a model PDE

Outlook for the year ahead

Our focus for the financial year will revolve around:
  • Procurements for the implementation of the new products approved as the result of the NSSF Amendment Act 2022
  • Embedding sustainability initiatives in procurement
  • Reservation of business to local providers and promoting of the SMEs
  • Automation of the contract management module
  • Provision of innovative solutions to further improve the procurement efficiency, and service delivery as we continue to be a model PDE

Supplier Engagement

Why we engage

In collaboration with our key suppliers, we develop policies and improve practices to minimise sustainability risk within our supply chain. Our interaction also helps us to extend their expertise and innovation in our business. At the end of June 2022, we had approximately 2,734 (June 2021: 2,300) contracted suppliers.

Engagement channels

The engagement initiatives that are already in practice include, the NSSF Suppliers Forum, access to finance through advance payments for high value works, reserve of services, supplies or works to local firms in accordance with the PPDA guidelines as well as an innovation programme dubbed the Hi-Innovator in partnership with the Mastercard Foundation where small and growing businesses receive entrepreneurial skills and funding of up to 30,000 USD.

Key engagements in 2022 included:

  • The Annual Supplier Forum, where we engaged suppliers across the country with the aim of enhancing supplier competitiveness and growth. We interacted with 150 (FY21: 300) suppliers physically and had a total online viewership of close to 2,000 (FY21: 5,000).
  • Supplier survey to measure the quality of our relationships with suppliers – the Fund achieved a 98% (FY21: 97%) satisfaction rating
  • Strategic sourcing processes
  • Ongoing supplier and contract management
  • Due diligence and risk management processes
  • Industry research
  • Service-level performance reviews

During the year, management held a series of meetings with one of our key technology suppliers to discuss technology developments and improvements to better support the smooth transition from legacy systems to a more robust and member-friendly system.

 

Our Suppliers span many cultures and continents. We believe this diversity makes us stronger and we are dedicated to building a diverse supplier data base that will ensure the best quality sourcing for the Fund while leveraging our inclusivity sustainability driver –

Supplier Engagement

Why we engage

In collaboration with our key suppliers, we develop policies and improve practices to minimise sustainability risk within our supply chain. Our interaction also helps us to extend their expertise and innovation in our business. At the end of June 2022, we had approximately 2,734 (June 2021: 2,300) contracted suppliers.

Engagement channels

The engagement initiatives that are already in practice include, the NSSF Suppliers Forum, access to finance through advance payments for high value works, reserve of services, supplies or works to local firms in accordance with the PPDA guidelines as well as an innovation programme dubbed the Hi-Innovator in partnership with the Mastercard Foundation where small and growing businesses receive entrepreneurial skills and funding of up to 30,000 USD.

Key engagements in 2022 included:

  • The Annual Supplier Forum, where we engaged suppliers across the country with the aim of enhancing supplier competitiveness and growth. We interacted with 150 (FY21: 300) suppliers physically and had a total online viewership of close to 2,000 (FY21: 5,000).
  • Supplier survey to measure the quality of our relationships with suppliers – the Fund achieved a 98% (FY21: 97%) satisfaction rating
  • Strategic sourcing processes
  • Ongoing supplier and contract management
  • Due diligence and risk management processes
  • Industry research
  • Service-level performance reviews

During the year, management held a series of meetings with one of our key technology suppliers to discuss technology developments and improvements to better support the smooth transition from legacy systems to a more robust and member-friendly system.

 

Our Suppliers span many cultures and continents. We believe this diversity makes us stronger and we are dedicated to building a diverse supplier data base that will ensure the best quality sourcing for the Fund while leveraging our inclusivity sustainability driver –

Key areas of focus for 2022/23

The Fund has made available business partnership opportunities for the next financial year 2022/23 where local firms will be given the opportunity to compete.

These include opportunities in real estate, information technology systems, office equipment and motor vehicles.

The supplier capabilities we hope to enhance because of supplier engagement include supplier collaboration, optimisation of technology and institution of supplier clinics.
Every year, the Fund holds the Annual Supplier Forum to discuss challenges and opportunities in the economy and forge a way forward on how to resolve them.

Key areas of focus for 2022/23

The Fund has made available business partnership opportunities for the next financial year 2022/23 where local firms will be given the opportunity to compete.

These include opportunities in real estate, information technology systems, office equipment and motor vehicles.

The supplier capabilities we hope to enhance because of supplier engagement include supplier collaboration, optimisation of technology and institution of supplier clinics.
Every year, the Fund holds the Annual Supplier Forum to discuss challenges and opportunities in the economy and forge a way forward on how to resolve them.