Company Announcement - It’s not uncommon for a large business and its small business suppliers to have diametrically opposite views about the same piece of business. To the large business, the work allocated to its supplier may be only a tiny part of a massive project or operation; to the SME supplier engaged to deliver on the task, it could literally mean the path to prosperity and even international growth opportunities.

“A prime example of these two differing views can be found in the hospitality industry. A hotel chain may have scores of suppliers delivering products and services that combine to provide guests with a memorable experience. The secret for the hotelier lies in making sure that everything is co-ordinated to form an entire seamless service offering. On the other hand, the small business is concentrating on a single item in the value chain,” says Ethel Nyembe, Head of Small Enterprise at Standard Bank. Where the interests of both large and small business coincide, however, is when the ‘small service’ is a critical component of the amenities offered to hotel guests. A case in point is the most basic of all hotel offerings - the provision of soap, shampoo, lotions, robes and slippers for hotel bathrooms.

“Even more significant is that this function may also provide the focused, innovative SME tasked with delivering the service with noteworthy opportunities for growth, and even international expansion,” says Ms Nyembe. These points were addressed in a recent episode of The Growth Engines, supported by Standard Bank and aired on Business Day TV. The 18-part series features the relationships between large businesses and the SME suppliers that serve them. This recent episode highlighted not only the mutual rewards each gains, but also pointed out just how the national economy can benefit from these symbiotic relationships. “When examining the relationship between a large hotel group and its amenities supplier, Paddy Brearley, CEO of Legacy Hotels & Resorts, said that the Bespoke Amenities Co. is one of around 75 suppliers to the Group. However, he conceded that the services supplied by the Bespoke Amenities Co. were essential to Legacy’s commitment to providing ‘magic moments’ for their guests.”

“Where the Bespoke Amenities Co. has displayed an innovative spirit is by harnessing the experience of Bruce Turner, MD of the company. Having been an exporter in his previous life, he realised that suppliers from China, were more vulnerable to competition than many thought possible. This led him to critically examine what his company could produce.” “What he found led to the Bespoke Amenities Co. manufacturing its own range of products locally. What is more important is that the company is planning on growing its staff base from 97 to over 300 within the next 18 months. Exports into Africa and beyond are also on the agenda,” says Ms Nyembe.

Says Bruce Turner: “I believe that 'made in South Africa’ means a lot more than ‘made in China’. This is especially so across Europe. The fact is that China is becoming more and more expensive. The rand is volatile and long distance shipping is becoming more expensive, and is also subject to unscheduled delays. When a product comes in from China there is import duty to pay. This import duty covers the profit in China, the rent, and all the other costs. By manufacturing in South Africa, we don’t pay import duty, we pay local prices for rent, and also have highly productive staff. We have been able to be competitive by achieving production price levels and maintaining them. We are also very flexible and can produce product overnight if our clients experience emergencies.”

The best news for the company, and South Africans, is that having been given their first major contract by Legacy Hotels & Resorts, the Bespoke Amenities Co. is now eyeing the other African and global markets, and in the process will be increasing its staff complement three-fold within a very short space of time.

“Our next step is to build a factory that is ISO compliant, and to take advantage of the favourable trade agreements we have with other parts of the world,” says Mr Turner.

“The lesson to be learned is that no matter how small a product appears to be, for the people who understand the demand and know how to exploit the gap in the market, the sky is only but the limit,” says Ms Nyembe.

The Growth Engines concludes on Business Day TV (DSTV channel 412) on Tuesday 7 July at 9:30pm, with repeats on Wednesday at 10:00am and Thursday at 2:00pm. To view previous episodes and in-depth articles on themes explored on the programme, log on at bizconnect.standardbank.co.za or bdlive.co.za/indepth/growthengines.