May 25, 2006
New Broad Based Empowerment vs Cost Savings - walking a tightrope?
All too often BEE (Black Economic Empowerment) is dealt with in one of two extremes, that is to say all or nothing. On the ‘all’ side some procurement departments only consider suppliers who present a specific empowerment score, usually with substantial black ownership. This narrow based approach is clearly out of touch with B-BBEE and runs the risk of favouring suppliers who compete only on their empowerment credentials, while pricing and quality may suffer.
Posted by Bernie at 02:22 PM | Comments (0)
October 17, 2005
Reducing the Total Cost of Affirmative Procurement
The unfortunate and sometimes "uncomfortable" truth is that the total life costs associated with engaging historically disadvantaged suppliers are often unexpectedly higher than engaging in business as usual. With existing and looming charter obligations, preferential procurement has become a strategic imperative and firms need to focus on reducing these costs.
Posted by Bernie at 06:00 PM | Comments (0)
October 13, 2005
Preferential Procurement: Destroying or enhancing procurement value….?
Whether it’s Green (Environmental) Procurement, developing historically disadvantaged individuals (HDI / BEE) or other forms of socially responsible procurement… powerful market forces guided by special interests play an increasing, and major role in defining procurement success. Will these issues destroy value created by strategic sourcing initiatives or will it raise the profile of the procurement organisation to the next level?
Posted by Bernie at 04:19 PM | Comments (1)