PMI declined below 50 index points during June - World Cup to blame?
The seasonally adjusted Kagiso Purchasing Managers Index (PMI) declined below the all-important 50 index point mark in June to reach 48.4, the first reading of less than 50 since October 2009, reports the Kagiso website. After reaching a peak of 60.4 in February 2010, the PMI has now declined for four months in a row. The recent trend for the SA PMI is quite different from international developments – the global PMI rose from 55.4 in February to 57.2 during May.
Posted by Editor at 12:09 AM
Making a career move? Use procurement networking sites
Look beyond the usual employment websites and press advertisements and do some networking, in this months' SmartProcurement explores the use of networking sites to improve your career prospects.
Posted by Editor at 12:08 AM
Procurement function one of most important drivers of future business success
The procurement function has a significant role to play in an organisation’s future business success in the global market, far beyond its past role of simple order processing, said Gerd Kerkhoff, CEO of Kerkhoff Consulting, tells SmartProcurement.
Posted by Editor at 12:07 AM
AMR report - Supply Chain is making it to the board
Responsibility for the supply chain is moving to board level, a report by AMR Research has noted. “Twenty years ago, a typical product company had the supply chain reporting to manufacturing, with responsibility mainly for inbound materials management and outbound shipping.”
Posted by Editor at 12:06 AM
Understanding the Purchasing Environment
Procurement practitioners will only add sustainable value to an organisation’s bottom-line if they understand the environment in which they operate, Ronald Mlalazi (MCIPS), Edu cation Manager at Commerce Edge Academy, tells SmartProcurement.
Posted by Editor at 12:02 AM
Playing with giants - India
India’s influence in Africa is growing. Elaine Porteous, SmartProcurement Associate Editor and Procurement advisor discusses how to make the most of this partnership.
Posted by Editor at 7:30 AM
Corruption in government procurement, how are they doing it?
It has been estimated unofficially that R30-billion per year, 20% of the overall government procurement budget of R150-billion, is being lost or is disappearing into a black hole of corruption. Much of the loss is through rip-offs, overpricing and the failure of contractors to deliver on their promises, says Carol Paton, of the Financial Mail, who wonders if the government has the political will to stop it.SmartProcurement would like to know which fundamental Procurement disciplines have been ignored and which would counter this national dilemma?
Posted by Editor at 6:40 AM
Purchasing Managers Index (PMI) experienced a third consecutive decline during May
The seasonally adjusted Kagiso PMI experienced a third consecutive decline during May, falling by another 4.1 index points to reach 51.1. The Kagiso website reports that while the level of the index continues to indicate that the factory sector is expanding, the latest reading is the most declined since November 2009 and suggests that the pace of manufacturing production has eased in recent months.
Posted by Editor at 6:20 AM
Customer-focused SCM would boost municipal performance
Service delivery for the customer of the Republic of South Africa – the citizen – takes place through local government. Recent service delivery protests have strongly indicated that there is much scope for improvement in terms of how government is able to meet the basic needs of citizens through its local authorities. In his master’s thesis, Calvin Naidoo, who works in the Supply Chain Department of Ekurhuleni Metropolitan Municipality (EMM), has posited that many problems experienced in service delivery can be ascribed to a lack of customer focus.
Posted by Editor at 9:50 AM
Volume leveraging benefits - Where's the evidence?
Public sector Procurement organisations of many of today’s recession-hit territories are responding to demands for savings in various ways, including increasingly desperate attempts (in many cases) to deliver Procurement savings by pressurising suppliers to deliver lower prices, on the largest possible scale. Over the last few years public and pri vate sector volume leveraging strategies have been evolving worldwide, very quickly indeed. However, it is generally unknown if the greater the volume to which a buyer is able to commit lowers the unit price the buying organisation will be quoted. Is volume leverage ad infinitum a valid proposition when designing public and pri vate sector purchasing structures and strategies? Wally Johnson of Purchasing Index (PI) speaks to SmartProcurement.
Posted by Editor at 9:00 AM
Comment: Draft preferential procurement regulations' effect on currently exempt SOEs
Ashney Chetty, Manager of Policy and Governance at Transnet, and her group offer the following commentary on the draft Preferential Procurement Regulations (“the Regulations”) to SmartProcurement readers. It will focus on the impact and effects of the Regulations upon SOEs that are currently exempted from the PPPFA.
Posted by Editor at 5:40 AM
Reducing SA's Carbon Footprint - the Procurement profession's role
Reducing Greenhouse Gases (GHGs) has become a priority for South African business and the Government.What role will procurement professionals play in this regard?
Posted by Editor at 12:00 AM
Procurement visibility needed at compulsive buyer: UK National Health Service (NHS)
In the United Kingdom (UK) Government’s search for budget balancing savings of tens of £ billions annually, as led by Prime Minister Gordon Brown, attention is increasingly directed to the more than £160 billion that the public sector reportedly spent on the procurement of goods and services from third party suppliers (half of which is spent on common consumables).
Posted by StaffWriter at 1:13 PM
"The Terminator" uses Strategic Sourcing for cost savings
Arnold Schwarzenegger is not exactly the first name one would associate with Strategic Sourcing... But in California, the first wave of their strategic sourcing initiative is producing savings of almost 20%... "total cost of ownership (TCO)being "Terminated....?"
Posted by Bernie at 4:05 PM
PART 2: How to negotiate with a SOLE Supplier
By Bernie van Niekerk
Its that time of the year.... Your SOLE supplier is about to present you "their valued customer" with their increase. They know, and you know that there is not much that you can do about it....
Now for whatever reason (part 1 of this article dealt with making sure you aren't put in a sole supply situation in the first place!) you or your organisation is faced with no alternative supplier or product. Not the greatest position to be in when trying to negotiate a better deal!
Posted by Bernie at 7:59 PM
How to negotiate with a SOLE Supplier (Part 1)
By Bernie van Niekerk
You know the feeling ...Their price increases are double that of everybody else's... As far as their service is concerned well you've got 2 choices.
1. Take it or 2.Leave it!
Their ''service" personnel are insolent to say the least. But there is one thing that you both know. namely, this supplier is in charge... and they know that you know!
Without the power of an alternative can you really negotiate...?
Posted by Bernie at 8:17 PM
Why should SALES, IT or OPERATIONS enjoy a greater mandate than Procurement?
By Bernie van Niekerk
It seems that everyone in the organisation has a reason why Procurement should not get TOO involved in their particular area of the spend! Ask the IT function, and they'll be of the opinion that IT's too technical and only propeller heads can really understand it...
Posted by Bernie at 8:28 PM
How one procurement manager's vision shook the auto-industry
By Bernie van Niekerk
March 1993. The New York Times reported that the Vice President for Worldwide Purchasing at the world’s largest Automotive Company was leaving. As a result General Motors (GM) lost 3.5% of its market value in one day!
Posted by Bernie at 8:31 PM