MTN Sustainability

 

Our Suppliers

Our suppliers are important corporate partners who have the ability to materially impact our economic position.

In 2009, MTN spent R31,2 billion on capital procurement alone. The bulk of the goods and services we procure relate to network and IT equipment and services. Our suppliers are therefore important corporate partners who have the ability to materially impact our economic position. Our largest areas of operational costs include consumer products such as handsets and SIM cards, travel and insurance, and our use of service providers and consultants, among others. Part of our strategy as a leading telecommunication company is to continually seek new solutions and to provide value-adding, competitive products and services. Suppliers are also customers and stakeholders, and contribute towards socioeconomic development through job creation and community development.

The Group’s procurement objectives include:

  • Standardising procurement processes and complying with best practices on procurement skills, structures and functions.
  • Ensuring that MTN’s least cost operator objectives are met by continually driving down product and service costs.
  • Standardising equipment and systems to optimise benefits from economies of scale.
  • Effectively managing relationships with suppliers to maximise value for MTN.
Reducing Costs
To reduce and contain cost, procurement adopted strategic sourcing principles coupled with the formulation of strategic partnerships with key vendors...
Standardisation
To achieve economies of scale, we standardised product, service and process specifications across multiple business areas and reduced the number of suppliers in these areas...
Improving processes
Prompt settlement of supplier invoices is a challenge many businesses face. To improve payment processing, the enterprise resource management system, Oracle, was...
Enterprise development
The development of small enterprises can be better sustained through the provision of mentorship, support and advice to developing businesses. MTN South Africa focused on developing a holistic...
 




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