Procurement

The Midas Group prides itself in doing all that it can to use a mix of the best suppliers, local and global, to provide the market with what it needs. Our aim is to sell branded, guaranteed, quality parts with comprehensive warranties at competitive prices to our nationwide preferred customer base. And in so doing, grow market share for our partner suppliers and preferred customer base alike.

The Group generally operates in the market of vehicles ranging from 4 to 12 years of age. To service this market the Group distributes both leading global brands as well as various quality private label value brands. Global brands constitute more than 80% of sales, however this dual brand strategy has enabled the Group to service the older vehicles in the market by offering a quality product positioned at the necessary price point.

All private label value brands offer a national warranty backed by the Midas Group and value adds which include continuous packaging improvement, catalogues, buying guides and focused marketing and advertising campaigns.

Achieving our aim depends on:

• Quality of products and services

• Cost of products and services

• Availability of products and services

Our Procurement Principles

The Group applies inter alia, the following key principles when making a buying decision:

• Deal openly and fairly

• Consider the whole life cost

• Take account of risk in our buying decisions

• Expect continuous improvement from our suppliers

• Develop a mixed economy of supply

• Use electronic procurement methods to ensure efficiency

• Adopt a socially and environmentally responsible approach

• Support the local economy

• Encourage innovation

• Ensure competition wherever appropriate

The performance and quality of all suppliers to the Midas Group are reviewed to ensure that contract and operational requirements are being achieved.

To assist the Group to achieve continuous improvement, we have a Supplier of the Year Programme.

The programme is designed not only to identify outstanding suppliers, but also to help others to attain the status of excellence by mutually addressing and managing under performance.

The targets for excellence are set for suppliers who have a process in place that allows them to supply quality, technology, leadership, delivery and market competitive pricing while demonstrating continuous improvement in service delivery, and to the Group. The programme is scored on an annual basis with awards being announced at the prestigious Supplier Recognition and Awards Evening held annually in the third quarter.

The categories measured include inter alia:

• Quality Assurance  ISO, QS or TS Certifications

• Product Development

• Operations

• Inventory Management

• Administration

• Marketing

• Sales Growth

• Customer Acceptance

Each category is assessed by the Midas Group staff member responsible for that specific discipline.

The winner is decided on the percentage achieved across all categories and confirmed by the Management of the Group. In addition to being recognized as an outstanding supplier, the Supplier of the Year can expect the following benefits:

• Inclusion in the next year’s Group promotional and advertising activities

• Be listed as a preferred supplier

• Option of first refusal in future marketing, advertising and promotional activities launched by the Group

• Receive priority status on receiving of product at all Midas facilities

• First choice on any other benefits as may be added from time to time

The Midas Group is committed to the growth of better suppliers, as better suppliers provide the support that is needed for all-round success in the replacement parts industry.