Business model and value creation aligned to the six capitals

Our Business model demonstrates the six capitals (inputs), enables value-adding activities (outputs) that create, preserve & erode value for our stakeholders (outcomes)

Legend: = value creation | = value preservation | = Value erosion

OUR CAPITAL INPUTS

Financial
  • Blood transfusion services
  • Receipts from debtors
    • Private patients & institutions
    • Government hospitals
  • Operating expenses
  • Capital expenditure
    • IT (process automation)
    • innovation
    • Patient Blood Management (PBM) supply/demand & inventory
    • Improved procurement practices/ processes
Intellectual
  • Brand, reputation
  • Research & development (innovative patient treatment)
  • Licence to operate
  • Scarce skills
  • Board experience
  • Academy
  • Drone capability
  • Achievement of ISO15189 & 100% SANAS accreditation across all sites
Human
  • 2565 employees (FY20: 2 524)
  • Investment in skills development & training
  • Strong compliance & governance structure
  • R1.34bn (FY20: R1.33 bn) salaries
  • B-BBEE skills spend R17.1m (FY20: R15m)
  • Performance management system
  • Leadership charter
  • Succession, TM, Promotion from within, leadership emersion programmes
  • Ethics
Manufactured
  • Donor pool (blood collection)
  • almost 900 000 collections per year – but C19 restrictions severely impacting
  • IT systems
    • migration to eProgesa
    • SAP ERP
  • SANBS sites
    • 2 testing laboratories (Constantia Kloof and Mt Edgecombe
    • 83 blood banks
    • 71 donation centres
    • 7 processing centres
  • 1 mobile donor vehicle
  • Complex logistics & cold chain
  • Transport (couriers, drones, emergency blood)
Social and Relational
  • Donor – confidentiality of information
  • Cornerstone of Health Care Services
  • (gift of life – blood supplied, healthy donors & #IronStrong)
  • Transformation strategies
  • Stakeholder engagement
Natural
  • Water, fuel and electricity usage
  • Green lab – Mount Edgecombe
  • Waste management

OUTPUTS

provide:

Red blood cells for transfusion

Fresh frozen plasma and Cryoprecipitate for patient use. Hyper-immune and recovered plasma for NBI

Pooled and Apheresis platelets for transfusion Platelet Immunology & Immuno-hematology testing

Stem cell collection, processing, cryopreservation & re-infusing services Therapeutic apheresis Testing to facilitate solid organ, stem cell & bone marrow transplants Molecular research & development

Produce Waste

Being cognisant of our material matters, while managing key risks and opportunities and our strategic objectives (iHealth) - all underpinned by sound governance.

OUR CAPITAL OUTCOMES

Financial
  • Turnover R3.19 bn(FY20: R3.32 bn 4% decrease YoY)
  • Reduction in total collections: R3.83bn to R3.58bn (-7% YoY) - C19 impact, but collections still > revenue
  • 44.7 % (FY20: 43.9%) staff costs as % total costs
  • 6.7% (FY20: 8.6%) net surplus vs budget deficit -2.4% (FY20: 1.4%)
  • Reduced current ratio 4.5 (FY20: 4.7)
  • Increased currency volatility impacts on procurement of imported consumables
  • Reduced collection & processing costs (C19 impact)
  • Reduced courier costs (C19 impact of reduced collections & processing)
  • Procurement contributed 42.4 points (FY20: 6.6) to SANBS B-BBEE score, now compliant on preferential procurement, supplier & enterprise development
Intellectual
  • Honorary positions
  • World leading blood transfusion & blood products organisation
  • Further embedding of Purpose, Vision & Mission
  • PBM – fulfills purpose “Trusted to Save Lives”
  • Publications & development of authors
  • International working groups
  • Innovation: 4 drones secured, revenue from new income streams <budget due to C19, CV Plasma trials, mobiles, smart fridges
  • R&D – clinical trials (CV plasma & C19 anti-body studies) & funding grants
  • Well performing Board with succession plan, accounting skills bolstered on Audcom
Human
  • 88% black employees (FY20: 88%)
  • Strong focus on females 59% female (FY20: 58%) - Board 60% & ExCo 43%
  • Strong, competent & focused leadership team
  • Reduced overtime due to reduced collections & processing
  • SANBS Formula – co-created, DNA score increase of 10% (FY20: 9%)
  • Reduction in tip-offs & more transparent communication
  • Aspirational culture journey continues
Manufactured
  • Active Donors: +-423 000 (FY20: +-464 000) C19 effect – blood stocks affected
  • Doctors: Reduced blood supply cutbacks
  • PBM – increased efficiencies in available blood stock management
  • Mount Edgecombe site functional
  • Smart fridges deployed
  • Developed & launched mobile donor vehicles
  • Remote/work from home enabled for staff where practical
Social and Relational
  • C19 effects on blood collection & issue – but continued unabated to saving lives & living our purpose
  • Compliance with all health/blood regulatory requirements
  • Advanced preparation for new regulations eg SAHPRA, NHI (participation – influencing & maximising opportunities it creates)
  • Positive impact on SA citizen health
  • Improved doctor experience (enough blood)
  • Improved implementation of BBBEE initiatives – achieved level 5 status
Natural
  • Waste management
  • Renewable energy
    • Borehole water
    • Solar
  • Reduced carbon footprint
  • Reduced transportation (planning & increased blood supplies)
  • carbon emission totals 17 957 tons (FY20: 20 395 tons) – overall reduction of 12%

... and ensures our ability to create value in the future.