Adopting contract management framework a lesson for government
Government entities are making progress implementing National Treasury’s (NTs) Contract Management Framework released in 2011, Paul Maddison, Managing Director at Realyst Contract Management, tells SmartProcurement.
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Online procurement resources for 2012
Managing your career is an ongoing challenge, more so in these difficult economic times where downsizing and outsourcing are more than buzzwords. One way of keeping ahead of the pack and up-to-date with what is happening in the world of purchasing and supply is to read widely and absorb the important news and trends, Elaine Porteous, independent procurement and HR consultant, advises in this month’s SmartProcurement.
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Desktop virtualisation - the future for end-user business computing?
More companies are now considering desktop virtualisation strategies just as an increasing number of employees within large organisations are demanding a more flexible work environment. In South Africa we are faced with additional challenges, including increased congestion on our roads, the introduction of road toll fees and high fuel prices, all of which make commuting to central office hubs time consuming and expensive, Alan Low of Purchasing Index (PI) tells SmartProcurement.
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PMI continues recovery - manufacturing likely to add to Q4 GDP growth
The Kagiso PMI picked up some momentum in November, rising by 1.1 index points to 51.6.November was the fourth consecutive month of gains for the PMI, but the index remains below the level of 54.2 reached before the widespread factory sector strikes in July.
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Safer, friendlier roads start with me
Freight moved via South Africa’s road infrastructure accounts for around 80% of total freight movement – and with Logistics Service Provider (LSP) vehicles being on the road 24 hours a day, 7 days a week, the road freight industry plays a key role in improving road safety this festive period, says Abrie de Swardt, Marketing Director of IMPERIAL Logistics, in this month’s SmartProcurement.
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PMI suggests stagnant factory sector output
The seasonally adjusted Kagiso PMI remained largely unchanged in October, rising marginally to 50.5 from a downwardly revised 50.2 during September, reports the Kagiso website.Abdul Davids, the Head of Research at Kagiso Asset Management, said that ‘for the last two months, the PMI has suggested stagnant month-on-month factory sector output’.
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SA Fraud investigations enjoy little support, Economic predictions
Investigations into large scale fraud are severely hampered by a break down of the national support systems, Dr David Klatzow, world renowned forensic scientist told delegates that the SmartProcurement World Conference held earlier in October.
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September PMI climbs above 50-index points
The seasonally adjusted Kagiso purchasing managers index (PMI) recorded a second consecutive monthly increase during September, gaining four points to move back above the key 50-index point mark to 50.7, the Kagiso website reports.
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Sustainable Procurement matters
Sustainable Procurement recently moved into the blogosphere following publication of the 5th edition of an HEC-Paris/EcoVadis report, ‘Sustainable Procurement: Back to Management!’ For a view on the survey’s findings of European procurement realities within 2011, SmartProcurement spoke to Abrie de Swardt, IMPERIAL Logistics Marketing Director.
Posted by Editor at 6:10 AM | Comments (0)
PMI increases, but remains below 50
The seasonally adjusted Kagiso PMI increased by 2.5 points to 46.7 index points during August, but remained below the key 50 point mark for the second month in a row, the Kagiso website reports.
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Strike action accelerates PMI plunge - hits two-year low
The PMI fell by 9.7 points to 44.2 points last month, which is significantly below the global PMI level.
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Black Economic Empowerment: How far have we come?
Broad-Based Black Economic Empowerment (B-BBEE) was a form of Economic Empowerment initiated by our government in response to criticism against Narrow Based Empowerment instituted in the country during 2003/2004. While Narrow Based Black Economic Empowerment led to the enrichment of a few black (Black African, Coloured or Indian) individuals, the target of Broad-Based Empowerment was to distribute wealth across as broad a spectrum of South Africa's people as possible. In contrast, Narrow Based empowerment measured only equity ownership and management representation.
Posted by Editor at 5:20 AM | Comments (0)
WAICSL chairperson supports procurement conference
The founding chairperson of the West African Institute for Supply Chain Leadership (WAICSL) in Ghana has put his support behind the internationally relevant SmartProcurement World Conference."Having participated last year, I encourage a stronger participation from African businesses at this year’s SmartProcurement World. They can only benefit from meeting the broad cross section of purchasing and procurement executives who attend the conference and expo, Dr Douglas Boateng told SmartProcurement.
Posted by Editor at 4:20 AM | Comments (0)
PPPFA amended - A big day for B-BBEE
Effective 7 December 2011, government departments will be forced to consider compliance to the Codes of Good Practice when evaluating tenders for government business. The publication of the amended Preferential Procurement Regulations, issued in terms of the Preferential Procurement Policy Framework Act (PPPFA), has been eagerly anticipated following the circulation of draft amendments for public comment in August 2009. The new regulations are the last component in executing B-BBEE as contemplated in the Broad Based Black Economic Empowerment Act and require that all tenders be accompanied by a valid B-BBEE certificate, issued by an accredited verification organisation.Wade van Rooyen of iquad verification services discusses the changes in this month’s SmartProcurement.
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PMI declines for third consecutive month - tracks lower global factory sector
The seasonally adjusted Kagiso PMI declined for a third consecutive month in June, and at 53.9 index points reached the worst level so far in 2011. Although the level of the index suggests that the manufacturing sector is expanding, it also signals a moderation in the sector’s growth momentum. The recent trend for the SA PMI is in line with global factory sector developments, the kagiso website reports.
Posted by Editor at 9:30 AM | Comments (0)
The truth about future growth - SAPICS Conference feedback
The next ten years will see mankind use more resources than it has in its entire history.Despite the recent recession the growth of the world’s population shows no sign of abating and urban populations in African cities are set to triple over the next 40 years.
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May PMI maintains strong showing
The seasonally adjusted Kagiso PMI remained at a relatively high level of 55.1 index points for the second consecutive month during May. While the index has softened somewhat since hitting a peak of 57.2 in March, the May level still suggests solid growth momentum in the factory sector, the group's website reports.
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April PMI just misses March high
The seasonally adjusted Kagiso PMI stabilized at a fairly high level of 56.4 during April, only marginally lower than the 13-month peak of 57.2 index points reached in March, reports the organisation's website.
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New companies act - changes to business environment
May 1, 2011 saw the implementation of the new Companies Act of 2008.The promulgation of this Act brings about several fundamental and important changes to South Africa’s laws regarding legal entities.
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BEE codes do not speak enterprise development
The best way for an organisation to become involved in enterprise development is through its own supply chain, said Claudia Manning, MD of development consultancy ECIAfrica and a member of President Jacob Zuma’s BEE advisory council.
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March PMI rises to 13-month high
The seasonally adjusted Kagiso PMI put in a strong performance during March, rising to a 13-month high of 57.2 index points, the Kagiso website reports.The most positive feature of the March numbers is that after rising to just above the key 50 point level in the first two months of 2011, the seasonally adjusted business activity index increased sharply from 51.6 to 59.7 points. The robust rise indicates that March witnessed a ramp-up of manufacturing production, most probably in reaction to previous (sustained in March) indications of improved demand conditions.
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Consumer Protection Act: implications for suppliers
As of April 1, 2011 suppliers in South Africa must comply with the Consumer Protection Act (CPA). Braam Botha of management training and consulting firm Arbinger Institute of South Africa tells SmartProcurement about some practical and legal implications of compliance.This article in made available only for information purposes, and is not legal opinion or advice.
Posted by Editor at 12:00 AM | Comments (0)
Cabinet to align treasury procurement regulations with BEE Act.
Cabinet announced in March that it will approve the alignment of the Preferential Procurement Policy Framework Act (PPPFA) and the Broad-Based Black Economic empowerment Act (BEE Act).Public entities follow the regulations of PPPFA to procure goods and services.
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February PMI improves marginally
The seasonally adjusted Kagiso PMI stabilized at a reasonably high level in February, reaching 54.8 index points, reports the Kagiso website.The most heartening trend in the latest numbers is that the PMI employment index rose back above the key 50 mark to 51.6, indicating that the factory sector may have started employing again. The February rise to above 50 follows nine consecutive months of below 50 readings.
Posted by Editor at 2:30 PM | Comments (0)
Volume leveraging can lessen anticipated Gauteng highway toll food price increases
Despite government’s suspension of gazetted tolls for Gauteng’s highways, their implementation on June 23 will have an inflationary effect on food in Gauteng, Gordon Henry, General Manager of the Catervest Buying Group tells SmartProcurement.
Posted by Editor at 2:10 PM | Comments (0)
Supply chain survey demonstrates roots of SA's infrastructure challenges
South Africa’s gross fixed capital formation (GFCF) - a reliable indicator of investment in logistics infrastructure - as a percentage of GDP decreased from an average of 25% in 1970-1989 to 16% in 1990-2008, which highlights the economic roots of South Africa’s long-term infrastructure challenges, the Supply Chain Foresight Survey 2011 reported at its results launch last week in Bryanston. SmartProcurement was in attendence.In the same periods China, India and Ghana have greatly increased levels of expenditure on infrastructure.
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Government's Green Paper - data management implications
The Department of Environmental Affairs has released the much anticipated and long delayed National Climate Change Response Green Paper (the Green Paper). Global Carbon Exchange’s Kevin James provides SmartProcurement with the points pertinent to you and your business.
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2.9 % rise for January PMI
The seasonally adjusted Kagiso PMI posted solid gains in January, gaining 2.9 index points to reach 54.6 – the highest level since April 2010. The improved reading provides further evidence that the PMI decline to below 50 in September / October 2010 was largely the outcome of temporary (strike related) factors, reports the Kagiso website.
Posted by Editor at 6:10 AM | Comments (0)
Marcus: Commodity inflation risk increasing
Reuters - South Africa faces rising risks to its inflation outlook due to commodity prices, and inflation may move to the upper end of the 3 to 6 percent target range sooner than expected, Reserve Bank Governor Gill Marcus said.In a speech posted on the Bank's website, Marcus said rising global and domestic prices were likely to pose a challenge to monetary policy in the coming months. She reiterated that the likelihood of further loosening was limited.
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Lack of risk management exposes BRIC economies - survey
Rapidly growing BRIC emerging economies are subject to external shocks as they lack adequate risk management and must synchronise fiscal and monetary policies, a survey of finance ministry officials showed.The survey, released in January by consultancy Booz & Company, said the role of finance ministries has expanded far beyond its traditional fiscal mandate and ministries must reform so that they are not overly driven by interventions, near-term fiscal targets and benchmarking against local peers.
Posted by Editor at 5:30 AM | Comments (0)
December PMI remains positive, but declines from November
The seasonally adjusted Kagiso PMI remained in positive territory during December 2010, albeit that the index declined marginally to 51.7 index points from the 52.9 recorded in November, reports the Kagiso website.
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Inaugural procurement conference attracts 260 professionals
The SmartProcurement World 2010 Conference brought 260 procurement and supply chain professionals from business and public sectors to Gallagher Convention Centre in November.SmartProcurement World (SPW) is a newly launched umbrella event hosting SmartProcurement’s annual SmartSourcing Conference and Public Sector Supply Chain Summit.
Posted by StaffWriter at 1:30 AM | Comments (0)
'Greening' the Supply Chain
Just as procurement officers across South Africa are starting to get to grips with BEE with its scorecards, criteria and nuances, along comes GEE (the green version). Much like in BEE, where companies are starting to be measured on the basis of whom they do business with, the green version is starting to develop in a similar format, Kevin James, CEO of Global Carbon Exchange, tells SmartProcurement.
Posted by Editor at 1:27 AM | Comments (0)
What Pravin's budget speech means for Procurement
Minister of Finance Pravin Gordhan outlined in his October budget speech some of government’s plans to amended poor procurement practices and combat fraud and corruption.Here follow the extracts from his speech as it relates to Public Sector procurement:
Posted by Editor at 1:10 AM | Comments (0)
SA's jobless could reach 45,5% by 2020
Estimates suggest that the number of jobless South Africans will increase from 6,2-million in 2010 to 16,8-million in 2020, consistent with an increase in the narrow unemployment rate from 25,3% to 45,5%, Loane Sharp, a director at Adcorp, tells SmartProcurement.
Posted by StaffWriter at 12:59 AM | Comments (0)
October PMI - Rises back towards neutral level
After falling below the key 50 mark in September, the seasonally adjusted Kagiso PMI rose back towards the neutral level during October to reach 49.8 index points, reports the Kagiso website.
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Fellowship number six makes for a claimed world first
Supply chain expert Dr. Douglas Boateng, a SmartProcurement Editorial board member, has accomplished a world first by being elected to his sixth concurrent fellowship.
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A difficult time for the construction industry - Enter Procurement
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September PMI: Falls back below 50
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Electric vehicle could spell the end of large portions of the auto supply chain
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August PMI: back into expansive territory
The seasonally adjusted Kagiso PMI reached 50.3 index points during August . The rise above the critical 50 mark followed two consecutive months where the PMI suggested that the manufacturing sector was contracting, the Kagiso website reports.
Posted by Editor at 5:05 AM | Comments (0)
Benchmark index analytics and modelling - a buyer's checklist
Alan Low, of Purchasing Index (PI), tells SmartProcurement what managers should be asking when they review the marketplace and choose an expenditure modeling solution for their business.
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LPG price regulation may spell tough times for suppliers
While government’s regulation of Liquefied Petroleum Gas (LPG) should mean lower prices for energy buyers, there are concerns about the impact this will have on suppliers.It is anticipated that smaller players in the sector will find it difficult to adjust. Service levels may be influenced negatively as smaller businesses try and find ways to adjust and reduce costs to make up for the sudden reduction in revenue, Andrew Hillman, MD of Bespoke Sourcing Solutions said in July.
Posted by Editor at 6:25 AM | Comments (0)
Kagiso PMI - July experiences modest improvement
The seasonally adjusted Kagiso PMI experienced a modest improvement in July, gaining 1.1 index points to 49.5, reports the Kagiso website. While the level of the index indicates that the manufacturing sector remains under pressure, a less pessimistic way of looking at the numbers is that it is the first time in five months that the PMI did not decline further.
Posted by Editor at 6:20 AM | Comments (0)
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 | Comments (0)
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.
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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 | Comments (0)
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 | Comments (0)
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 | Comments (0)
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.
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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 | Comments (0)
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 | Comments (0)
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 | Comments (0)
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 | Comments (0)
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 | Comments (0)
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 | Comments (0)
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 | Comments (0)
"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 bernievn at 4:05 PM | Comments (0)
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 bernievn at 7:59 PM | Comments (6)
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 bernievn at 8:17 PM | Comments (0)
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 bernievn at 8:28 PM | Comments (2)
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 bernievn at 8:31 PM | Comments (1)
