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January 14, 2010

Positive spin-offs from BEE accreditation

What began as a process to merely comply with BBBEE Codes in order to meet client requirements has turned into an extremely valuable exercise in organisational development for a Centurion-based national coffee distributor, Frontier Coffee, which has been awarded a Level 2 (with value adding) BBBEE rating, Christo van Rensburg, General Manager of Frontier Coffee tells BEENEWS.co.za.



The company, which offers corporate clients a range of office coffee services through a coffee machine and coffee vending machine distribution network, has realised an exceptional return on its BBBEE investment.

"I imagine that there are still many other small- to medium-sized companies who may view BBBEE as something they are forced to embrace. However, I encourage them to look at it as an opportunity to re-evaluate their processes. However frustrating the process was at times, it was beneficial and helped Frontier Coffee move forward," advises van Rensburg.

The BBBEE accreditation process highlighted the fact that Frontier Coffee's staff training was inconsistent, despite the number of its employees growing from 15 to 50 over the last two years, he says.

Considering that the company strives for exceptional customer service, this training deficit needed to be addressed and this drove the implementation of BEE codes in the company's operations, notes van Rensburg.

"As a result of our efforts, the company has ended up with better skilled members of staff, who are adding huge value to our clients," he says.

The company has noted that technical repairs are done right first-time in over 98% of cases (up from 84%) and it's had a very noticeable uptick in customers calling to compliment front line staff.

Similarly, Frontier Coffee was forced to look at its suppliers.

"Buying from large companies is not always best. When we started purchasing from smaller companies, not only did we receive better prices, but we benefitted from better service. Our new coffee supplier, Java Lava, demonstrated a level of flexibility that we would never have received from our previous supplier. They quite happily accommodated a request for a new coffee blend that tastes like a well known Italian blend, which they matched and helped Frontier Coffee introduce to our clients. Our new suppliers help us to maintain our contracts," enthuses van Rensburg.

The B-BBEE accreditation process also gave impetus to Frontier Coffee's own internal "Project Barista" - a programme to support exceptional achievers to create their own coffee vending service companies. Frontier Coffee uses a percentage of its equity to help staff grow their own coffee companies. It has also begun assisting its corporate clients who want to empower their own staff.

While the Level 2 rating may be important to Frontier Coffee's clients as it allows them to put 156% of their own spend against their own procurement scorecard, it has made fundamental changes to the way the company operates.

 

Submitted by:

Steve Giddings
Director
Office: 086 110 5949
Web: www.frontiercoffee.co.za

Posted by StaffWriter at January 14, 2010 8:23 AM