PURCO SA Core Business Segments - Contract negotiation and administration
CONTRACTED SUPPLIERS
PURCO SA managed contracts with 652 supplier partners during the year, a 9 percent increase over 202. The number of contracted suppliers showed a sharp drop in 2020 due to Covid-19, but recovered in both 2021 and 2022 periods.
The upward trend is likely to continue as Members, and in particular TVET colleges, rely on PURCO SA expertise to assist them with their unique requirements.
TOP 20 SUPPLIERS
The top twenty contracted suppliers for 2021-2022 account for 34% of procurement spend.
The top supplier for the year was HG Travelling Services, which received more than double the prior year spend. The top four suppliers are a clear reflection of the end of pandemic travel restrictions and the resumption of normal campus activity.
SUPPLIER TRANSFORMATION
PURCO SA is committed to transformation through staffing and supplier appointments.
PURCO SA staff are 90% Black and 72% Female 77% of contracted suppliers are Black owned and 34% are black women owned; 48% or suppliers are EMEs and 63.5% are level 1 compliant.
PROCUREMENT SPEND
Spend through PURCO SA contracts is a reliable proxy for the Consortium’s performance. The 2021-2022 financial year recorded a strong 21% growth in Member Spend, with total contract reaching R2.22 billion for the year, compared to the prior year’s R1.83 billion.
SPEND BY REGION
With the exception of the Eastern Cape all regions achieved growth for the year, with an overall YoY increase of 6.2%. Central Institutions returned a marginal 3.8% increase in overall procurement spend.
SPEND BY MEMBERSHIP SEGMENT
TVET Colleges continue to be the fastest growing membership segment, with YoY spend increasing by 67.5% in 2020 and by 60.3% in the current period
TOP 20 CONTRACT CATEGORIES
The top 20 contract categories account for 91% of Member spend, with the leading three categories being Security, Information Technology, and Catering. Security and Guarding grew by 17% for the year, while the Information Technology category and the Catering category increased by 6% and 8% respectively.