OUR BUSINESS

Materiality Determination Process and Material Matters

OUR BUSINESS

Materiality Determination Process and Material Matters

Financial and Organisational Sustainability

Capitals impacted

Strategic Priorities

Top Risks

Importance to SANBS in delivering value

As a self-funded, not-for-profit organisation and the largest provider of blood products and services in South Africa, strong governance, leadership, business continuity, stakeholder management and financial stability are key to ensuring stability and long-term sustainability.

Risks to value creation

  • Inability to collect outstanding debt
  • Increasing cost of doing business in the current economic climate
  • Delays in external supply chain
  • Inability to fill key leadership positions
  • Reputational risk – brand erosion
  • Inability to meet full demand for blood products
  • Perceptions of high costs of blood products and services
  • Poor internal processes leading to inefficiencies

Opportunities and strategic response to create value

  • A stakeholder manager has been appointed to elevate the importance of stakeholder engagement and the management of stakeholder relationships from a holistic perspective.
  • Initiatives to strengthen financial resilience include:
  • An Inventory Optimisation project has commenced to ensure inventory visibility throughout the value chain
  • Business process improvements in the procure-to-pay and order to collect processes – includes improvement in billing accuracy, efficiency and debt management
  • Ensure future fit skills and competencies
  • Bad debt management in consultation with the Department of Health and medical aids, hospitals and RAF
  • Refined budget process and disciplined expenditure (cost increase of 4.5%, well below inflation)
  • Improved procurement contracting and contract management processes
  • Efficient delivery of blood products to reduce cost
  • Focussed efforts to grow alternative revenue streams

Outlook for the year ahead

  • Focussed efforts on increasing debt collections and engagements with medical aids to collect long outstanding claims
  • Continue to improve on procurement and contract management processes
  • Formalisation of a stakeholder engagement framework to ensure structure and direction in a coordinated approach
  • Improve internal systems to be more agile in responding to customer queries and managing the order to collect process

Financial and Organisational Sustainability

Capitals impacted

Strategic Priorities

Top Risks

Importance to SANBS in delivering value

As a self-funded, not-for-profit organisation and the largest provider of blood products and services in South Africa, strong governance, leadership, business continuity, stakeholder management and financial stability are key to ensuring stability and long-term sustainability.

Risks to value creation

  • Inability to collect outstanding debt
  • Increasing cost of doing business in the current economic climate
  • Delays in external supply chain
  • Inability to fill key leadership positions
  • Reputational risk – brand erosion
  • Inability to meet full demand for blood products
  • Perceptions of high costs of blood products and services
  • Poor internal processes leading to inefficiencies

Opportunities and strategic response to create value

  • A stakeholder manager has been appointed to elevate the importance of stakeholder engagement and the management of stakeholder relationships from a holistic perspective.
  • Initiatives to strengthen financial resilience include:
  • An Inventory Optimisation project has commenced to ensure inventory visibility throughout the value chain
  • Business process improvements in the procure-to-pay and order to collect processes – includes improvement in billing accuracy, efficiency and debt management
  • Ensure future fit skills and competencies
  • Bad debt management in consultation with the Department of Health and medical aids, hospitals and RAF
  • Refined budget process and disciplined expenditure (cost increase of 4.5%, well below inflation)
  • Improved procurement contracting and contract management processes
  • Efficient delivery of blood products to reduce cost
  • Focussed efforts to grow alternative revenue streams

Outlook for the year ahead

  • Focussed efforts on increasing debt collections and engagements with medical aids to collect long outstanding claims
  • Continue to improve on procurement and contract management processes
  • Formalisation of a stakeholder engagement framework to ensure structure and direction in a coordinated approach
  • Improve internal systems to be more agile in responding to customer queries and managing the order to collect process

Regulatory Landscape

Capitals impacted

Strategic Priorities

Top Risks

Importance to SANBS in delivering value

  • The regulatory landscape is constantly reviewed for changes to existing legislation, as well as new legislation to ensure SANBS is made timeously aware of changes and impacts in order to respond proactively to meet requirements.

Risks to value creation

  • Non-compliance with regulatory and best practice standards
  • Negative impact on revenue streams
  • Negative impact on reputation and ability to operate

Opportunities and strategic response to create value

  • SANBS verifies its scope of laws, regulations and standards of compliance in its Regulatory Universe on an annual basis and, through its committees, assesses levels of compliance with key requirements bi-annually
  • Additional initiatives to meet regulatory requirements and high-quality standards:
  • SANBS has participated in workshops on NHI and potential SAHPRA regulations
  • Continued strengthening of information security and safety protocols - compliance with the Protection of Personal Information Act (POPIA)
  • Our quality remains of the highest standard having achieved and maintained 100% ISO 15189 accreditation of our laboratories and donor centres

Outlook for the year ahead

  • Information privacy to be expanded beyond the legal requirements of POPIA
  • ISO 9001 accreditation for our Support Services
  • Ongoing engagement with the National Department of Health and other stakeholders, in anticipation of regulatory requirements
  • External and internal audits on compliance to legislation and accreditation to ISO standards

Regulatory Landscape

Capitals impacted

Strategic Priorities

Top Risks

Importance to SANBS in delivering value

  • The regulatory landscape is constantly reviewed for changes to existing legislation, as well as new legislation to ensure SANBS is made timeously aware of changes and impacts in order to respond proactively to meet requirements.

Risks to value creation

  • Non-compliance with regulatory and best practice standards
  • Negative impact on revenue streams
  • Negative impact on reputation and ability to operate

Opportunities and strategic response to create value

  • SANBS verifies its scope of laws, regulations and standards of compliance in its Regulatory Universe on an annual basis and, through its committees, assesses levels of compliance with key requirements bi-annually
  • Additional initiatives to meet regulatory requirements and high-quality standards:
  • SANBS has participated in workshops on NHI and potential SAHPRA regulations
  • Continued strengthening of information security and safety protocols - compliance with the Protection of Personal Information Act (POPIA)
  • Our quality remains of the highest standard having achieved and maintained 100% ISO 15189 accreditation of our laboratories and donor centres

Outlook for the year ahead

  • Information privacy to be expanded beyond the legal requirements of POPIA
  • ISO 9001 accreditation for our Support Services
  • Ongoing engagement with the National Department of Health and other stakeholders, in anticipation of regulatory requirements
  • External and internal audits on compliance to legislation and accreditation to ISO standards

Environmental Sustainability

Capitals impacted

Strategic Priorities

Top Risks

Importance to SANBS in delivering value

  • SANBS is committed to responsible use of natural capital and progressively eliminating the negative impact that it has on the environment through a deliberate ‘Greening Strategy’
  • Foster a low carbon culture underpinning procurement and other decisions with an overall carbon reduction objective

Risks to value creation

  • Negative impact of SANBS operations on the environment
  • Resistance from staff to change
  • Reputational risk relating to SANBS not being seen to be actively contributing to environmental sustainability

Opportunities and strategic response to create value

  • SANBS contributes to global climate change initiatives through sustainable practices and a deliberate ‘Greening Strategy’
  • Key initiatives include:
  • Accelerate recycling of general waste across all SANBS sites and suppliers
  • Process and issue of blood closer to source to minimise travel and reduce C02 emissions
  • Promoting a strong internal sustainability culture and commitment to our greening strategy
  • A digitalisation strategy to create a paperless environment and solidify information governance and traceability
  • Replicate greening achieved in Mount Edgecombe in other SANBS facilities
  • Reducing carbon footprint by promoting flexible working arrangements

Outlook for the year ahead

  • Upgrade Constantia Kloof premises based on the Mount Edgecombe model
  • Fastrack greening initiatives beyond building projects
  • Monitor and measure progress with greening initiatives through the interactive greening dashboard

Environmental Sustainability

Capitals impacted

Strategic Priorities

Top Risks

Importance to SANBS in delivering value

  • SANBS is committed to responsible use of natural capital and progressively eliminating the negative impact that it has on the environment through a deliberate ‘Greening Strategy’
  • Foster a low carbon culture underpinning procurement and other decisions with an overall carbon reduction objective

Risks to value creation

  • Negative impact of SANBS operations on the environment
  • Resistance from staff to change
  • Reputational risk relating to SANBS not being seen to be actively contributing to environmental sustainability

Opportunities and strategic response to create value

  • SANBS contributes to global climate change initiatives through sustainable practices and a deliberate ‘Greening Strategy’
  • Key initiatives include:
  • Accelerate recycling of general waste across all SANBS sites and suppliers
  • Process and issue of blood closer to source to minimise travel and reduce C02 emissions
  • Promoting a strong internal sustainability culture and commitment to our greening strategy
  • A digitalisation strategy to create a paperless environment and solidify information governance and traceability
  • Replicate greening achieved in Mount Edgecombe in other SANBS facilities
  • Reducing carbon footprint by promoting flexible working arrangements

Outlook for the year ahead

  • Upgrade Constantia Kloof premises based on the Mount Edgecombe model
  • Fastrack greening initiatives beyond building projects
  • Monitor and measure progress with greening initiatives through the interactive greening dashboard

Economic, Social and Political Impact

Capitals impacted

Strategic Priorities

Top Risks

Importance to SANBS in delivering value

  • The uncertainty of the external environment has a direct impact on SANBS operations
  • The social, economic, political unrest and more recently, weather unpredictability and upheaval has tested the resilience and continuity of our operations, highlighted the importance of robust risk management and business continuity, and created opportunities for us to improve our organisational responsiveness and agility

Risks to value creation

  • Inability to collect sufficient blood
  • Failure of customers to pay for services rendered
  • Widespread unrest resulting in loss of assets (vehicles, buildings)
  • Damage to assets and inability to continue operations due to unexpected severe weather conditions
  • Increased risks posed to staff
  • Declining potential donor base due to increased poverty and deteriorating health

Opportunities and strategic response to create value

  • SANBS ensures ongoing identification of emerging risks in response to the changing external environment and strong business continuity ensured limited impact on ability to meet demand
  • Increase stakeholder interactions with a focus on the importance of blood to the health care sector and cost drivers related to the service provided further positioned SANBS as a strategic partner in healthcare delivery

Outlook for the year ahead

  • Enhancement of organisational business continuity plans to mitigate against potential business disruptions
  • Increase deployment of mobile donor centres
  • Further improvement of our B-BBEE level

Economic, Social and Political Impact

Capitals impacted

Strategic Priorities

Top Risks

Importance to SANBS in delivering value

  • The uncertainty of the external environment has a direct impact on SANBS operations
  • The social, economic, political unrest and more recently, weather unpredictability and upheaval has tested the resilience and continuity of our operations, highlighted the importance of robust risk management and business continuity, and created opportunities for us to improve our organisational responsiveness and agility

Risks to value creation

  • Inability to collect sufficient blood
  • Failure of customers to pay for services rendered
  • Widespread unrest resulting in loss of assets (vehicles, buildings)
  • Damage to assets and inability to continue operations due to unexpected severe weather conditions
  • Increased risks posed to staff
  • Declining potential donor base due to increased poverty and deteriorating health

Opportunities and strategic response to create value

  • SANBS ensures ongoing identification of emerging risks in response to the changing external environment and strong business continuity ensured limited impact on ability to meet demand
  • Increase stakeholder interactions with a focus on the importance of blood to the health care sector and cost drivers related to the service provided further positioned SANBS as a strategic partner in healthcare delivery

Outlook for the year ahead

  • Enhancement of organisational business continuity plans to mitigate against potential business disruptions
  • Increase deployment of mobile donor centres
  • Further improvement of our B-BBEE level

How can we help you?

Let's Connect

Head Office

  • 1 Constantia Boulevard Constantia Kloof, Roodepoort, 1709
  • (011) 761-9000
  • customerservice@sanbs.org.za

Main Links

Ⓒ 2022 - All Rights Are Reserved. SANBS Integrated Report. Created by Joshero (Pty) Ltd.

Head Office

  • 1 Constantia Boulevard Constantia Kloof, Roodepoort, 1709
  • (011) 761-9000
  • customerservice@sanbs.org.za

Main Links

Ⓒ 2022 - All Rights Are Reserved. SANBS Integrated Report. Created by Joshero (Pty) Ltd.