IMPERIAL Logistics is a global logistics and supply chain leader, with operations in over a dozen African countries. The Group consists of over 70 member companies, and employs more than 20 000 people. It provides end-to-end logistics and supply chain management in an efficient, proactive and cost effective manner.

The Challenge

Mpowered recommended the wholesale implementation of our software solutions throughout the Group. BEEtoolkit Premium and Supplier Management accounts were set up for each of the member companies, with users nominated throughout the country. Extensive training was undertaken for users in Johannesburg, Durban and Cape-Town, and scorecards were then created for each Operating Company as users loaded their data directly into the systems. These scorecards were then automatically consolidated into subsidiary group scorecards, 7 divisional scorecards, and finally a single Group scorecard. In some cases, Imperial Logistic’s structural complexity was reflected in a consolation structure 5 layers deep. A separate consolidation of the Supplier Management System was then encoded as a check to the BEEtoolkit, with the flexibility of including inter-company spend at an OpsCo and divisional level, but excluding it at a Group level for verification. Once the system was operational, on-going monitoring by our support staff enabled iterative management recommendations to process. In measuring the 7 elements of B-BBEE, Ownership, Management and Enterprise Development were set to filter down from the Group, while the remaining elements consolidated up from Operating Companies. In some instances, data was uploaded in bulk by ourselves to ensure accuracy and compliance.

The Solution

IMPERIAL Logistics ultimately measures its B-BBEE compliance in a single consolidated Group scorecard. Because of its size, the co-ordination of this scorecard had always been a mammoth task, assuming months of work each year. In order to calculate this score, the transformation department had to manually gather, and consolidate data from it’s over 70 decentralised companies. This meant sending out spreadsheets to each company, individually educating users on how to compile their data, then chasing submissions, quality assuring the data, and consolidating it manually. The use of Excel spreadsheets opened the Group up to human error in both the consolidation and calculation of scorecards. The process was subject to human error at each level. More importantly, measurement of Group compliance on an on-going basis was onerous if possible at all. There was no central visibility of contributing scorecards, so Operating Companies were unable to assess their role in achieving he Group score.

The Results

Within months, IMPERIAL Logistics was able to measure the compliance of each of its member companies, with reporting tools allowing them to assess which companies were not compliant. The Group was able to extend an existing incentive structure based on company performance, linking B-BBEE back to specific management performance indicators. In this way, accountability for compliance was made to rest on individual companies, preventing those with poor scorecards to rest on the strength of other performers. Scorecards are now created on a monthly basis with little manual intervention, allowing the transformation department to redirect resources to strategic management. On a Group level, IMPERIAL Logistics is able to gauge the direction of their compliance efforts pro-actively, by assessing their performance throughout the year and making course adjustments as necessary. In 2012, the Group was assisted in the execution of their BEE Strategy by the systems, maintaining their level 3 status, and increasing their score from 77.69 to 81.73 points.

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