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STAKEHOLDER ENGAGEMENT
| SOCIETY | REGULATORS | SHAREHOLDERS | MEDIA | CUSTOMERS
| BUSINESS PARTNERS |
EMPLOYEES |
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MONITORING OUR PERFORMANCE
We meet with our suppliers every year at our Annual Suppliers Forum to hear their
concerns and exchange ideas and information with them. During the event,
we conduct a survey to assess their perceptions and levels of satisfaction and
confidence regarding Safaricom.
We use the feedback gained through the survey to adjust our processes and
offerings to partners. We engaged with our principle dealers and agents during the
year through 25 Principle Forums and over 200 Agent assistance training sessions
nationwide. Our Principle Forums address a range of issue, including: how to grow
businesses, new investment opportunities, new products, the
Know Your Customer
(KYC) initiative, security of outlets and emerging types of fraud. Through these and
other channels, we seek to discover and address business partner concerns and
frustrations.
We insist that all suppliers sign up to the Code of Ethics for Business in Kenya. The
Code is based on the principles of the United Nations Global Compact (UNGC).
By the end of the financial year, 317 or 98% of suppliers with running contracts had
signed up to the Code. The remaining 2% of suppliers will not be invited for new
business opportunities until they sign up to the Code.
We also undertake performance evaluations of all of our suppliers on a quarterly
or bi-annual basis. Suppliers are measured against a variety of indicators (e.g. cost,
quality, delivery, responsiveness, flexibility, value-add, health and safety) and a
performance score is calculated.
Suppliers whose performance is below the required threshold (<60%) are assisted
with customised performance improvement plans (PIP) and mentored towards
achieving acceptable levels of service. In case of lack of improvements after a
PIP has been implemented, the contract is recommended for termination and no
invitations are sent for participation in future business opportunities.
SUPPLIER PERFORMANCE EVALUATIONS
FY17 FY16 FY15
Suppliers Evaluated
1,099 947 400
Average Score
82% 78% 77%
While the number of suppliers evaluated increased to 1,099 during the year, it
was still short of our internal target of 1,200 evaluations. It was satisfying to see
the average score improve from 78% to 82%, which can be attributed to closer
collaboration with suppliers, the inclusion of service level agreements in supplier
contracts and sensitisation of internal contract owners regarding the need to
objectively and consistently evaluate our suppliers. Unfortunately, one of our
suppliers suffered fatalities during the year and so was issued with a ‘red card’ for
health and safety standards and suspended from providing us with services for 12
months.
FY17 HIGHLIGHTS
A significant change in our relationship with our dealers and agents this year was
the separation of dealer and agent Relationship Managers (RMs). Previously, both
agents and dealers were managed by the same RMs, with a single RM handling
up to 500 dealers and 3,500 agents. The separation of agent and dealer RMs has
not only made workloads easier, it has improved availability and made us closer
to these two tiers of business partners. We now have 6 RMs handling the top 1,200
agents.
FY17 FY16 FY15
Dealer Relationship Managers
6
5
4
Area Sales Managers
36
36
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Mobility Scheme (Cumulative No. of Bikes Supplied)
2,304 1,455 10
SDG 17