2022 Sustainable Business Report

92 | SAFARICOM SUSTAINABLE BUSINESS REPORT 2022 KPI SUMMARY OUR MATERIAL TOPICS OUR BUSINESS OUR STAKEHOLDERS BUSINESS PARTNERS OUR HIGHLIGHTS • Spend with local suppliers is at 62% compared to foreign spend 38%. • Supplier self-assessment survey highlighted certain gaps, the majority of which have now been closed. • 360-degree feedback for supplier self-evaluation has encouraged more collaborative engagement. • Converted 416 dealer outlets to dealer express care outlets. • Onboarded 1 900 M-PESA super-agents. • 35 million customer KYC documents processed. ISSUES FOR SOCIETY • Suppliers: Delayed communications on tender outcomes and lags in payment processing. • Dealers: KYC regulations. • Agents: Arbitrage claw back commission. We champion compliance with safety, remuneration and human rights issues (SDG8) and reduce inequality (SDG10) by promoting diversity and inclusion throughout our value chain and ensuring that minorities are represented in our business relationships. UPHOLDING OUR REPUTATION AND BRAND INTEGRITY Our business partner network comprised 799 suppliers, 435 dealers and 262 000 M-PESA agents. We rely on our network to uphold and enhance the Safaricom brand which is synonymous with integrity and innovation. Our business partners help us increase brand awareness, expand our customer base and create positive relationships with current and potential customers. We work them to meet governance, environmental and social needs. SUPPLIERS MAINTAINING A STRONG RELATIONSHIP Our strong relationship with our suppliers is based on ongoing, open engagement. A centrally managed, dedicated helpdesk responds to supplier queries, with suppliers also making use of emails and other direct forms of communication. A strong induction framework is in place, with inductions held quarterly. Shortly after year-end, we held the Supplier Recognition Awards where we honoured 19 suppliers in seven categories. We used this opportunity to communicate our strategy/company mission, operational updates, Occupational Health and Safety (OHS) updates and developments from our Customer Obsession cascade journey. We also shared feedback from the Satisfaction Survey. The negative economic impacts of COVID-19 impacted consumers and hence, our suppliers. Despite these challenges, our relationship with our suppliers remained strong as we responded to their needs: During the pandemic, we helped to ensure our suppliers’ businesses stayed afloat by making exceptional earlier payments, including continued payments to retainer accounts to cushion the businesses for two quarters and providing hygiene packs to our contingent workforce. We also reinstated payment cycles twice a month, one at mid-month, one at the near end of the month, to enhance timely settlement. In addition, purchase order (PO) suppliers can now invoice online, which has accelerated the payment process. We have continued accelerating the digital agenda to create efficiencies in all our operations to the extent that we now have over 90% touchless POs. Regarding suppliers’ concerns, tender feedback is available in real time on the i-supplier portal.