Macdonald Maluleke: Chief Procurement Officer, ACSA. 
Airports Company South Africa (ACSA) presents a compelling case study of how strategic supply chain transformation can deliver exceptional results across multiple dimensions simultaneously. The organisation's achievements in the 2024/25 financial year demonstrate that it is possible to exceed procurement targets for historically disadvantaged suppliers while maintaining operational excellence and strengthening governance frameworks.
The Next-Generation Transformed Supply Chain: Beyond Compliance - Strategic Value Creation
The next generation of transformed supply chains in SOEs move beyond mere compliance with broad-based black economic empowerment (B-BBEE) requirements towards strategic value creation. This transformation is characterised by:
Integrated Strategic Planning - Supply chain management becomes central to corporate strategy rather than a peripheral function. At ACSA, this shift is evidenced by the establishment of supply chain management as a standalone division with a dedicated C suite executive, Chief Procurement Officer (CPO), separate from the finance function.
Outcome-Oriented Metrics - Rather than simply measuring spending percentages, next-generation supply chains focus on economic impact. ACSA's support for 23,959 job opportunities through its procurement activities demonstrates this outcomes-based approach.
Ecosystem Development - Transformed supply chains actively build supplier capabilities rather than merely selecting from existing options. ACSA's comprehensive Enterprise Supplier Development (ESD) programmes, including The Entrepreneur 2024 initiative across multiple regions, exemplify this ecosystem approach.
Technology-Enabled Transparency
The digital transformation of supply chain management enables unprecedented levels of transparency and efficiency. Key elements include:
Real-Time Monitoring: Digital platforms provide continuous visibility into procurement activities, enabling proactive intervention before issues escalate into irregularities.
Automated Compliance Checking: Technology systems can automatically verify supplier credentials, track transformation commitments, and flag potential compliance issues.
Data-Driven Decision Making: Advanced analytics enable procurement teams to optimise supplier selection based on multiple criteria including transformation impact, commercial value, and risk profiles.
ACSA's Procurement Excellence - A Deep Dive
ACSA's transformation spend performance in the 2024/25 financial year demonstrates the potential of strategic supply chain transformation:
- 76.93% of controllable spend with 50% or more black-owned companies (against a 50% target)
- 42.81% with 30% or more black-women-owned businesses (against a 15% target)
- 68% black businesses share of commercial revenue (against a 60% target)
- Level 2 B-BBEE accreditation maintained.
These results are particularly significant because they were achieved while the organisation experienced a 13% increase in revenue and maintained operational excellence across its nine-airport network.
ACSA's success stems from a comprehensive strategic framework that operates across eight key sectors:
- Construction: Major infrastructure projects leveraging the R21.7 billion permission programme
- Information Technology: Strategic modernisation investments totalling R271 million
- Commercial Operations: Revenue-generating partnerships in retail, car rental, and advertising
- Ground Handling: Transformation through licensing agreements and enterprise development
- Fuel Supply: Market access creation for new entrants to the aviation fuel sector
- Property Development: Aerotropolis initiatives driving regional economic development
- Security Services: Insourcing initiatives in certain security areas creating permanent employment
- Training and Development: Academy programmes building sector capabilities
Multi-Dimensional Impact Measurement
ACSA's approach demonstrates the importance of measuring transformation impact across multiple dimensions. The economic impact of ACSA's procurement activities supported R11.2 billion in GDP contribution and generated employment for nearly 24,000 people across its network. Through the ACSA Aviation Academy and comprehensive training programmes, the organisation invested in capability building that extends beyond immediate procurement relationships.
The ACSA Enterprise Development programme "Ilembe", implementation across KwaZulu-Natal, Western Cape, and Free State regions demonstrates commitment to inclusive geographic development.
Strengthening Governance and Reducing Corruption
ACSA's zero tolerance to corruption relies on robust structural reforms rather than merely punitive measures, although consequence management remains one of the effective tools in curbing procurement non-compliance at ACSA. The establishment of supply chain management as an independent division (separation of powers) reduces potential conflicts of interest and creates clear accountability lines.
The establishment of a three-bid committee system effective 01 March 2025 that resulted in a clear segregation of duties between the Bid Specification Committee (BSC), Bid Evaluation Committee (BEC) and Bid Adjudication Committee (BAC) which will minimise conflict of interest and improve future audit outcomes. ACSA also introduced external bid evaluations for its high value strategic tenders which resulted in reduced tender cancellations, improved compliance and enhanced procurement execution.
The implementation of 32 project management guidelines and enterprise-wide standardisation reduces discretionary decision-making that can create corruption opportunities. There are multiple layers of governance including Board committees, internal audit, and external oversight that provide comprehensive monitoring.
Technology as an Anti-Corruption Tool
Digital transformation serves as a powerful anti-corruption mechanism. Automated systems reduce human intervention in routine procurement decisions, minimising opportunities for corrupt practices. Digital platforms create comprehensive, immutable records and audit trails of all procurement activities, enabling effective post-facto review.
Automated systems produce exception reports that flag unusual patterns or deviations from standard processes, enabling proactive intervention. ACSA has re-engineered its comprehensive contracts management system raising payment flags and contract termination dates 180 days in advance. These monthly reminders are but one flag that has already served to change behaviour.
ACSA has embarked on a process to automate its procurement processes with a tender for implementation of Phase 1 of its procurement digitisation strategy already underway with implementation expected to start from 01 November 2025. This phase will enable all ACSA service providers to submit their bids through an etender portal resulting in them saving significant costs on printing and transportation including time spent in travelling to ACSA offices to deposit their bids at a physical tender box. This automation is expected to improve compliance and audit outcomes as all bids will be submitted to ACSA electronically with minimal human intervention.
Cultural Transformation
Beyond structural and technological measures, ACSA's success reflects a fundamental cultural shift. The organisation demonstrates a values-based Leadership, grounded in its PRIDE values (Passion, Results, Integrity, Diversity, Excellence) which are the fundamentals that define our procurement processes.
Clear disciplinary processes for procurement irregularities, are in place and adhered to at ACSA. Regular supplier engagements and capability development (continuous improvement) create positive incentives for compliance and performance. ACSA SCM plans to increase these supplier development programmes across the country to ensure increased localisation of most of our commodities.
The next phase of ACSA's supply chain evolution will incorporate the following:
Predictive Analytics: Using historical data to predict supplier performance and identify potential risks before they materialise.
Machine Learning: Automated pattern recognition to identify unusual procurement behaviours or potential fraud indicators.
Blockchain Technology: Immutable transaction records that provide ultimate transparency and traceability.
Future developments may include:
Supplier Financing: Direct financial support or facilitated access to capital for qualifying suppliers with the support of SMEs funding institutions, enabling them to scale operations.
Technology Transfer: Active sharing of technical knowledge and systems to build supplier capabilities.
Regional Integration: Extension of procurement programmes to support suppliers across the Southern African Development Community (SADC) region.
Circular Economy Principles
Integration of ESG (Environment, Social and Governance) sustainability considerations through lifecycle Assessment: Evaluating suppliers based on environmental impact across the entire product lifecycle. Procurement strategies that minimise waste and promote circular economy principles. Preferential procurement for suppliers offering green innovations and environmentally sustainable solutions.
Implications for Other SOEs
ACSA's model offers several scalable principles for other SOEs. Supply Chain Management must be elevated to strategic importance with dedicated executive leadership. At ACSA we placed the CPO position at a C suite level and tasked the CPO with strategic integration.
Measurement systems should emphasise economic impact rather than mere compliance metrics. As ACSA's ESG system matures we hope to ultimately apply an economic impact metric as a key measure. These lofty goals are achievable in a high-performance organisation such as ACSA.
Active enterprise supplier development creates more sustainable transformation than passive preferential procurement, and digital transformation is essential for achieving scale while maintaining transparency.
Conclusion
ACSA's achievements in supply chain transformation demonstrate that SOEs can simultaneously deliver on commercial objectives, transformation mandates, and governance requirements. The key lies in viewing supply chain management as a strategic enabler rather than an operational necessity.
The next generation of transformed supply chains in SOEs will be characterised by strategic integration, technology enablement, ecosystem development, and robust governance frameworks. These elements work together to create sustainable transformation that generates broad-based economic benefits while strengthening operational performance.
As SOEs across emerging economies grapple with similar transformation challenges, ACSA's model provides a practical blueprint for achieving excellence across multiple dimensions. The organisation's continued evolution, particularly its planned investments in advanced analytics and regional integration, offers insights into the future direction of transformed supply chain management in the state sector.
The success of this model ultimately depends on leadership commitment, cultural transformation, and sustained investment in capabilities. ACSA's experience demonstrates that with the right approach, SOEs can become powerful engines of economic transformation while maintaining the highest standards of governance and operational excellence. DM