6 Brexit implications for procurement


brexit.pngThe U.K.’s decision to leave the E.U. roiled markets, pummeling the pound and sending commodities linked to economic growth into a slump. As the dust clears and organisations begin to consider the long, uncertain road ahead, what are the top six implications for procurement and supply chain organisations?

eThekwini municipality linking procurement and SMMEs


Fawzia.jpgHosting Smart Procurement World KwaZulu-Natal gave the city of eThekwini’s SMMEs the chance to network with big business procurement from the corporate and public sectors.

“Involving Procurement in assisting SMMEs to grow and creating new businesses generates jobs for citizens,” eThekwini Municipality Cllr Fawzia Peer, Chair: Finance & Procurement, told SmartProcurement.

“[Linking Procurement with small businesses] helps the municipality, in terms of poverty alleviation, and the State, in terms of less welfare support. Ultimately, it improves the quality of life of our people,” said Cllr Peer.

Leadership profile: Shiraz Sarang

ShirazSarang.jpgThis month SmartProcurement profiles Shiraz Sarang, Chief Procurement Officer at Nedbank South Africa

Full name : Shiraz Sarang

Position : Chief Procurement Officer

Your organisations’ procurement expenditure  : R12-billion per annum

Who does P & SM report to : Chief Financial Officer

Private sector or Public sector : Private

Core business activity of the enterprise : Financial Services

Number of people in your P & SM organisation : 67

Management motto : Anything’s possible.

How to keep Millennials in procurement

Thumbnail image for YoungProf.jpg

Running a leading procurement organisation is no longer just about attracting younger workers to supply chain and procurement careers. It is about keeping them there.

Millennials are now the largest living generation, totalling 75 million, even overtaking baby boomers in size. By 2020, they are expected to represent 50% of the global workforce, too. But Millennials, like all generations, have different characteristics and values than their predecessors, and these differences are forcing businesses to rethink not just how they attract but, more importantly, how they engage and retain Millennial employees.

For supply chain and procurement organizations, this may mean making some cultural changes. According M.L. Peck, senior vice president of programs and product development at ISM, companies should be focusing on retaining Millennials, if they are not already. Millennials will need to fill the increasing number of supply chain and procurement jobs left open by retiring baby boomers.

Understanding policies underpinning the creation of black industrialists


MsMaisela.jpgBlack industrialists have a responsibility to maintain black ownership of their businesses. Failure to do so can set back government’s transformation efforts.

As a black industrialist it means that one has to be involved in the running of the business on daily basis and according to the BEE act, a black industrialist cannot sell/resell shares to a white counterpart as that would be diluting those [black ownership] shares,” said Nomumelelo Maisela, Deputy Director: Black industrialist, Department of Trade and Industry (dti).

“That particular act regresses government and takes it back in terms of transformation,” said Maisela who was speaking at the Smart Procurement World conference in KwaZulu Natal in June.

Cleaning up SA's R500bn tender machine


KennethBrown.jpgPolicing South Africa's R500-billion supply chain management system was an enormous task involving more than 20 000 staff and 220 000 suppliers, Treasury chief procurement officer Kenneth Brown said.

The supply chain management system, in which tenders are often rigged by officials doing business with the state, lies at the heart of huge corruption in the country. The Treasury established the national procurement office three years ago in an attempt to get to grips with the problem and modernise the system.

Integrating procurement systems is required to achieve real economic transformation


SizaMthethwa.jpgDevelopments within government such as the creation of the ministry of economic development and, more recently, the ministry of SMEs indicate that the public procurement system also needs to evolve to remain a relevant and proactive tool to drive sustainable economic development, said Adv. Siza Mthethwa, General Manager: KZN Supply Chain Management, KZN Provincial Government.

Addressing procurement & supply chain officials at the KZN Smart Procurement conference, Mthethwa said the public sector needs to change the mind set of procurement officials and how procurement is done.

Port Elizabeth ED office signs supply agreements with Eastern Cape entities


Thumbnail image for KeaobakaMahuma.jpgAn Enterprise Development Centre (EDC) in Port Elizabeth has signed Memorandums of Understanding with Nelson Mandela Bay Municipality, Joe Gqabi Municipality, East London Industrial Development Zone and the George and Knysna municipalities to provide funding and business development support to SME suppliers that work with these entities.

Through the initiative, Absa, which has opened seven other EDCs around the country, aims to assist thousands of small and medium enterprises (SMEs) in the Eastern Cape, says KeaObaka Mahuma, Head of Enterprise and Supply Chain Development at Absa.

Updated 'Supply Chain Management Compendium' endorsed by SOEPF and CIPS


DouglasBoateng_515x800.JPGThe State Owned Enterprise Procurement Forum (SOEPF) and the Chartered Institute of Procurement and Supply (CIPS) have endorsed the second edition of the much-anticipated Compendium of Supply Chain Management Terms. Containing thousands of supply chain management terminologies, Professor Douglas Boateng’s Compendium provides an all-inclusive compilation of procurement and other aspects of supply chain management related information.

“SOEPF seeks to share best practices related to procurement and supply chain management – Prof. Boateng’s Compendium offers our members a useful tool through which such practices can be shared,” commented SOEPF Chairman Dennis Mlambo.

Forget cost management - think 'value management'


value_management.jpgIn tough economic times, management may take a ruthless approach to various areas of the business where they perceive costs as being too high. For example, they immediately cut the marketing budget – when in fact marketing may be more critical than ever before. Or they trim down expenditure on IT systems, when investing in more streamlined IT processes can quickly turn into a cost saving.

Typically, costs within a company are being divided into pure operational costs - but these, in themselves, have massive indirect costs (head office expenses, FICA [for banks], IT, etc.). But in taking this approach, businesses usually have little to no idea of what the true cost to provide their service/product is.

Manufacturing optimism - PMI up almost two points


PMI_July.jpgManufacturing optimism increased to 53.7 index points in June from 51.9 in May, surprising economists who had expected it to fall to 50.46, a Barclays-sponsored poll of purchasing managers, released on Friday, showed.

June marked the fourth month the purchasing managers index (PMI) remained above 50 points.

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