ASCCI’s 3 strategic priorities
ASCCI’s operating framework is defined by 3 strategic priorities. Each of these is comprised of a set of activities which together serve to address strategic supply chain competitiveness improvement priorities within the South African automotive industry.
1. Supplier Capability
Enabling improved supplier capability has been identified as central to the broader goal of enhancing supply chain competitiveness. This focus area will consequently deal with the critical issues of supporting the adoption of operating best practices and introducing skills development interventions directed at enhancing employee productivity.
In so doing, the objective of supplier capability activities is to elevate supplier productivity to levels comparable with leading cost countries, with this to be measured in Rand MVA per Rand of employee cost. Four activities have been prioritised to achieve these objectives in ASCCI’s first 3 years of roll-out:
Base operating standards
Leveraging TS 16949 to provide an effective indicator of base standards of operation, especially amongst Tier 2 suppliers.
World class manufacturing
World class manufacturing (WCM) best practice implementation – implementing WCM interventions at 120 suppliers.
Shop floor skills
Supporting team leader and operator skills programmes that demonstrate sustainable productivity impact.
Supporting engineering and artisan skills programmes that demonstrate a sustainable impact on skills availability.
This strategic focus area will aim to deepen Manufacturing Value Add (MVA) through localisation, with this to be undertaken by developing a comprehensive understanding of localisation blockages, enablers, and opportunities; and then facilitating investment at the Tier 1 and Tier 2 levels of the value chain in order to localise content.
The objective of the localisation priority area is to increase levels of localisation as value of vehicle sales ex-factor less all imported content; the ASCCI base condition for the industry is 41% local content (as measured for the 2013 calendar year). This objective will be delivered through the prioritisation of 4 focused programmes, each addressing a specific aspect of localisation:
Raw material pricing and beneficiation
Building cost advantage through utilising locally available base commodity raw materials.
Tier 1 localisation
Identifying Tier 1 technology gaps & associated opportunities, and facilitating investment in 6 designated technologies.
Tier 2 localisation
Identifying Tier 2 technology gaps & associated opportunities, and facilitating investment in 6 designated technologies.
Investment in updated process technology: supporting interventions to facilitate investment in updated process technology at 30 existing suppliers.
3. Strategic insights
Given its role in coordinating and aligning national supply chain development activities, ASCCI is well positioned to develop insights into critical policy, regulatory, and related issues that influence industry growth and competitiveness.
The strategic insights focus area consequently aims to facilitate optimal benefit from a set of policy, regulatory, and trade related activities, with the objective of increasing local content and generating opportunities for employment creation. Four activities have been defined to develop the relevant insights to guide ASCCI’s policy, regulatory and trade related activities:
Blockages and enablers to competitive local supply
Develop a comprehensive understanding of blockages and enablers to competitive local supply and use outputs to inform a coordinated strategy that supports 2020 objectives.
SA market regulatory review
Develop policy recommendations directed at increasing local producer share of domestic vehicle market.
African market regulatory review
Develop trade policy recommendations directed at growing a viable, sustainable, large scale African automotive market.
Facilitation of buyer-supplier linking
Link enterprises to domestic localisation & export market opportunities.