Discover what Major Automotive Customers are Looking for in Local Suppliers

• Automotive cluster opens applications for new SMME market access initiative

Eastern Cape, September 2024 – Since the beginning of this year, 759 businesses in South Africa have closed their doors, underscoring the harsh reality that the path for many small, medium and micro enterprises (SMMEs) is paved with challenges. Kyle Ballard, a representative from the East Cape Automotive Industry Forum (ECAIF), believes that while issues such as cash flow are a significant challenge, the toughest obstacle SMMEs face is securing reliable and sustainable sales with significant customers.

“In the automotive sector, where customer requirements such as cost competitiveness, quality, and compliance are ‘non-negotiables’, many SMMEs struggle to align and communicate their business offerings with the expectations of large, national customers,” he says. “To bridge this gap, the ECAIF is inviting SMMEs in the Eastern Cape currently accessing large automotive customers or those interested in doing so, to participate in the Origin8 Programme.”

Origin8 aims to equip SMMEs with an understanding of exactly what large automotive customers require from potential suppliers, as well as tools to better align their business offerings to address these customers’ needs. In other words, what does it take for an SMME to be identified as “high potential” by a large customer, and then to move from high potential to receiving purchase orders.

Ballard explains that one of the key highlights of the ECAIF Origin8 Programme is the partnership with the Eastern Cape Development Corporation (ECDC) and the Eastern Cape Province’s Department of Economic Development, Environmental Affairs and Tourism (DEDEAT). “As funding partners, their support is pivotal to SMME growth in the local automotive sector, and we are incredibly grateful to have them on board.” He further adds, “Through working collaboratively with these partners, we believe the ECAIF Origin8 programme is one of many ways we can collectively empower more local businesses whilst fostering an inclusive, transformed and diversified automotive sector in the province.”

Who should apply?

The ECAIF Origin8 Programme is specifically aimed at emerging and established SMMEs in the Eastern Cape with an attractive business offering for large automotive customers.

Ideal candidates should meet the following criteria:

• South African Black-owned business
• Been in operation for at least two years
• Have an annual turnover of between R2-R50 million
• Aiming to grow into the automotive sector

How to apply?

Applications for the programme are open until 5 November 2024 and are FREE of charge. Successful applicants will take part in two key events:

• 3 December 2024: An interactive session focused on large, national automotive customers’ requirements and a business pitch workshop.
• 4 December 2024: A local study tour of a world-class automotive manufacturer.

To apply, visit https://zfrmz.com/BnEIrRDuDBo82U8GkWxW.

For SMMEs still on the fence about whether this opportunity is right for them, Ballard shares four compelling reasons to apply today:

1. Understand the critical questions big customers ask: Gain valuable insights into the key questions that large automotive customers consider when evaluating new suppliers.
2. Align your business with industry needs: Participate in a facilitated panel discussion with industry giants, ensuring your business offering aligns with what major customers seek.
3. Access practical tools for sustainable growth: Receive resources and tools tailored to help you scale your business in a way that meets customer needs, rather than upgrading just for the sake of it.
4. Engage with prospective customers and peers: Build valuable connections with both new customers and peers in the automotive industry through interactive sessions and networking opportunities.

For more information, contact ecaif@bmanalysts.com

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Author: SayWatt SayWatt from SayWatt on behalf of East Cape Automotive Industry Forum (ECAIF).