Registering On The Central Supplier Database
On 1 September 2015 the Government's Central Supplier Database was launched by Minister of finance Mr Nhlanhla Nene. The idea behind the Central Supplier Database is to centralise supplier's data to simplify Government's procurement processes. It also aims to reduce costs to both Government as well as Suppliers to Government.
The Minister said that this Supplier Database will enable a new approach towards:
- Government's ability to engage and manage major suppliers;
- Government's ability to engage and manage SMME suppliers;
- Government's ability to scout, develop, and contract new suppliers;
- Government's ability to ensure greater productivity and value for money from suppliers doing business with the state.
The aim is to get all suppliers onto the Central Supplier Database on or before 1 April 2016. That is the date Government aims towards in implementing the new system. Remember that this is a self-registration process. Our advice is to get registered so that you can start sharing in Government contracts once the system starts on 1 April 2016.
It would be better if all suppliers' information is standardised and processed through an automatic system. Hopefully this will encourage more transparency when it comes to awarding competitive bids and quotations.
Furthermore the Minister said that some of the key benefits of the Central Supplier Database will include:
- The CSD will be the source of all supplier information for all organs of state;
- The CSD will reduce duplication of effort and cost for both business and government while enabling electronic procurement processes, as suppliers will only be required to register once when doing business with the state;
- Suppliers that are in good standing on the various compliance requirements of government, will experience a reduction in red tape and administrative burden when doing business with government;
- Standardised and electronic verification of supplier information, will lead to reduced fraud;
- Significant reduction in compliance audit effort and cost will be achieved across all spheres of government; and
- The CSD will allow government to more effectively implement SCM policies and practices applicable to suppliers for example 30 per cent of sourcing dedicated to SMMEs as announced by our President in the State of the Nation address earlier this year.
We believe that all these new initiatives of Government are a move in the right direction. We will continue with our training to provide you with all the correct information to respond to bids correctly and hopefully successfully.