“Local is lekker” – sourcing locally

  • Social and relationship capital
  • Building Better Business: Supply Chains
  • MM: Maintaining an efficient and effective supply chain

We also see it as our responsibility to support our local manufacturers that in turn support local industry. The more we can procure high quality, affordable, locally made products, the quicker we can respond to our customers’ needs while lifting up communities where jobs are being created.

Our intellectual property and extensive retail experience support our ability to manage each step from high-level oversight to introducing new technologies and systems; and from the time the product leaves the manufacturing facility until it is purchased by the customer.

Increasing local manufacturing, specifically in the group’s adult wear brands where purchasing is not driven by high volume items, gives the Pepkor Speciality brands the opportunity to derive more efficiencies by using local suppliers.

Pre-season planning remains the same for local or imports but locally orders can be finalised within 6 weeks, helping to manage predictability of styles and ranges. Quick response enables in-season adjustments giving the brand a sense of how to scale without over- or under-ordering, while still maximising the season. It also aids in controlling quality and design. To drive further efficiencies, a central Production Coordination capability has been established on behalf of Pepkor Speciality.

The trade-off to imports might be margin, but the difference is managed by improved efficiencies. Shorter lead times, higher stock turn and improved working capital off-sets potential losses, with the added benefit of investing in local enterprise development.


FROM A BUSINESS PERSPECTIVE

Local manufacturing provides direct visibility in the group’s supply chain. This allows our customer facing brands to mitigate supply chain risks that might impact on their ability to procure, distribute and provide products and services through our various retail channels and platforms


FROM A SUSTAINABILITY PERSPECTIVE

Beyond the direct procurement from CMT suppliers, the industry further supports raw material suppliers, ordering fabric from local businesses that knits the cotton and dye the fabric, machine and factory maintenance.

* Of the group’s 72 million clothing items are sourced locally, it represents approximately 9 800 manufacturing workers in clothing factories in South Africa. (This calculation is based on the industry standard of output for production units