I definately think that it would be worth a try. However agree with Graham, as this could sour relations between buyer and supplier.

Any comments from people who currently benefit from a well designed and implemented incentive plan?

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David van der Walt

Well, coming from the empowerment field we usually work with the presupposition that procurement officers should consider Price, Quality, Service and BEE when making purchasing decisions. So management should take care to ensure that remuneration policies for procurement officials act in unison with larger company goals. An extreme focus on BEE in this regard can be just as harmful as totally neglecting the issue, while any shift in procurement policy should not leave the people of the company out of the picture, otherwise heightened staff turnover isn’t far off.

The point therefore is that bonuses based on savings alone may well undermine preferential procurement goals, while a properly structured bonus system could work towards staff retention.

In some if not in all organisation, staff in other department envy buyers, but if there will be a good parameter to measure this, that will be nice and backed with good company policy. I buy Izak and Graham idea if buyer supplier relationship will not go sour.

I to would love to know what the going rate (salary) is for Buyers. In our industry for a Senior Buyer your are looking at R10000-00 CTC.

Public Sector: Buyer R 4000-5000
Senior R 5000-6000
Private Sector: Buyer R 6000-8000
Senior R 8000-11000