AMR report - Supply Chain is making it to the board

SCM boardroom July 2010.gifResponsibility 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.” Read more...

Posted by Editor at 12:06 AM | Comments (0)

Customer-focused SCM would boost municipal performance

Calvin Naidoo.jpgService 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. Read more...

Posted by Editor at 9:50 AM | Comments (0)

SA expert changing the face of African Supply Chain Management

Dr Douglas Boateng.gifSmartProcurement editorial board member Dr. Douglas Boateng has been elected president of the first supply chain management (SCM) centre of excellence in West Africa, of which he also a founder. Read more...

Posted by Editor at 9:20 AM | Comments (0)

Stores Optimisation - Hidden Costs of Holding Spares

InventoryApril2010.jpgAll too often companies have no idea of the value of spares in their stores. This problem lies not only with small businesses; some of the largest companies in South Africa have little idea of the value and content of their stores, as the stores stock has been built up over a number of years. The reality is that the internal customer has a requirement to keep their business running, and tends to concentrate on ensuring business continuity, as opposed to reducing cost of holding spares, Craig Webber of Volition Consulting Services tells SmartProcurement. Read more...

Posted by StaffWriter at 8:50 AM | Comments (0)

Strategic leveraging of public procurement critical to success of industrial policy

Parliament.jpgThe latest Industrial Policy Action Plan (IPAP) has slated current public procurement for “not delivering adequately on either value-for-money or key industrial objectives.” Read more...

Posted by Editor at 6:00 AM | Comments (0)

Cost-cutting measures at the expense of strategic goals

containing risk.gifHow informed is your organisation about supply chain risks?

Why should Procurement professionals only implement cost-cutting measures once they fully understand the ‘big picture’ aspects associated with supply chain risks?

This is the third article in SmartProcurement’s World-Class Procurement Practice series, penned by Ronald Mlalazi (MCIPS), Commerce Edge Academy’s Edu cation Manager. This month's article is based on CIPS Level 5, Unit 2, ‘Risk Management and Supply Chain Vulnability’. The series is based on Chartered Institute of Purchasing & Supply (CIPS) unit content and on recent research done by Commerce Edge Academy.

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Posted by Editor at 9:15 AM | Comments (0)

4 steps to an optimised supply chain

efficient supply chain.jpgToday’s supply chains across all industries are becoming significantly more complex. Suppliers, distributors and retailers are faced with the combined challenges of global sourcing and fulfilment, shorter product life cycles, increasing amounts of legislation, the dynamics of multi‐channel retailing, the speed of technological advances and now, the most challenging economic circumstances in a lifetime. Read more...

Posted by Editor at 12:00 AM | Comments (0)

Municipal finance study: dissatisfied customers results in billing queries

past-due-invoice.jpgScholarly research into the payment habits of City of Johannesburg (COJ) Municipality customers has linked non-payment of accounts to customers’ queries and dissatisfaction with services. Read more...

Posted by Editor at 12:00 AM | Comments (0)

Increasing Integration, Collaboration and Overall Supply Chain Efficiencies

Efficient supply.jpgWayne Furness, Senior Vice-President Africa Region of end-to-end global logistics and supply chain management organisation UTi Worldwide, poses some questions on how effective organisational structure, end-to-end capabilities and appropriate measurement and reward systems, when applied to a logistics service provider (LSP) and client organisation, can make or break overall supply chain effectiveness. Read more...

Posted by Editor at 12:00 AM | Comments (0)

MIT supply chain risk management survey launched

Global Study.jpgThe Massachusetts Institute of Technology (MIT) is conducting an important global study of Supply Chain Risk Management in collaboration with the Association for Operations Management of Southern Africa (SAPICS) and Imperial Logistics. Read more...

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Procurement's image problem

Delegates.JPGThe Procurement profession has a serious image problem. Most South African organisations, whether corporate or government, still do not see the profession as a strategically important function... Read more...

Posted by Editor at 12:00 AM | Comments (0)

Procurement professionals update breakfast series 2009 concludes

bernie van niekerk.jpgCommerce Edge, SmartProcurement and Purchasing Index teamed up to present the last leg in this year's “Procurement Professionals Update Breakfast Series” at the Astro-tech Conference Facility in Parktown, Johannesburg. Over 60 delegates registered to hear Bernie van Niekerk, CEO of the Commerce Edge Group, summarise the highly informative and relevant report published by the Centre for Advanced Purchasing Studies (CAPS), the American P & SM Research Centre, in conjunction with AT Kearney, the professional procurement consulting firm. Read more...

Posted by Editor at 12:00 AM | Comments (0)

What will your supply chains resemble in ten years' time? Part 2

Elaine Porteous.jpgIf an organisation wants to be competitive in the next decade, let alone a significant market participant, then its supply chains had better evolve. Read more...

Posted by Editor at 12:00 AM | Comments (0)

Improving supply chain processes and activity steps through Process Mapping - Part 2

Dr Douglas Boateng.gifThis month, SmartProcurement editorial board member Dr. Douglas Boateng (FIoD, FCILT, FCMI, FIBC, FIOM), CEO of PanAvest International, presents the second part of his discussion on the application of process mapping to improve the performance of supply chain processes. Read more...

Posted by Editor at 12:00 AM

Improving supply chain processes and activity steps through Process Mapping

Dr Douglas Boateng.gifThis month, SmartProcurement editorial board member, Dr. Douglas Boateng (FIoD, FCILT, FCMI, FIBC, FIOM), CEO of PanAvest International, discusses the application of process mapping to improve the performance of supply chain processes. Read more...

Posted by Editor at 1:20 AM | Comments (0)

What will your supply chains resemble in ten years' time?

Broken Chain.jpgIf they are still operating in the same way as they are today, you will probably not be competitive, let alone a significant market participant!

Researchers have proposed seven key strategies for success in the future. Organisations that aspire to be commanding forces in their industries in the next ten years will have to consider all seven. South African based organisations must take note of how this will affect them, Elaine Porteous, Business Development Executive at TechPro Personnel, tells SmartProcurement.

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Posted by Editor at 12:00 AM | Comments (0)

Historic culture can lead to Public Sector Procurement fraud - 5 tips for reducing fraud

Summit delegates.JPGThe allegiances formed during South Africa’s troubled political history are still  influencing the country’s supply chain processes. This was one of the issues highlighted during a panel discussion on SCM fraud prevention at SmartProcurement’s 2009 Public Sector Supply Chain Management Summit. Read more...

Posted by Editor at 10:30 AM | Comments (0)

Managing risk in corporate and supply chain strategy

Dr Douglas Boateng.gifDuring uncertain times, directors’ focus must be on managing risk in corporate and supply chain strategy, Dr Douglas Boateng (FIoD, FCILT, FCMI, FIBC, FIOM), tells SmartProcurement.

The last twelve months have seen unprecedented changes in the global economy never before witnessed in the modern era. For the first time in decades, some of the best managed companies’ bottom-line results have come under severe pressure. According to the UN annual economic report (Qtr4-08), 2009 world output will reach a meagre 1% in 2009, compared to 2.5% in 2008 and global growth rates of between 3.5% and 4% in the preceding four years, says Boateng, who will be speaking at the Public Sector Supply Chain Summit later this month.

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Posted by Editor at 9:40 AM | Comments (0)

Strategic agility in Supply Chains - risk and foxes

Strategic agility is the way forward, and South African organisations need to follow suit without delay, especially when gearing their supply chains, if they want to be around for the up turn, industry experts tell SmartProcurement.

Douglas Kent.JPG“Supply chains interact with many elements of risk. Agility is linked to risk,” says Douglas Kent, President of eKNOWtion, a global supply chain consultancy, and newly elected chairman of the European Supply Chain Council’s Leadership group. Read more...

Posted by Editor at 9:05 AM | Comments (0)

Capex and Opex - It is not about price, it is about cost

Annuska Bezuidenhout.jpgWhen considering the procurement of capital goods it is important to take a step back and consider the context. “Capital goods generally have a long lifespan and thus it is necessary to consider this implication when acquiring them. Failure to do so could result in the cost of the goods removing the benefit of savings of procurement price. Further, an oversight in the management of cost over time, due to the initial procurement decision, can result in dramatic overspend over the lifecycle of the goods”, Annuska Bezuidenhout, a Senior Procurement Specialist at Volition Consulting Services, told SmartProcurement. Read more...

Posted by StaffWriter at 1:10 PM | Comments (0)

Zuma tender solution will hamper service delivery. Accountability the answer

Jacob Zuma.jpgIn response to ANC President Jacob Zuma’s statement that the government tendering process should return to the old tender board systemSmartProcurement and independent experts are clear that this move will hamper service delivery, negate progress made in public sector procurement and still not be a foolproof mechanism to prevent fraud. Individual accountability within the current context offers a better solution. Read more...

Posted by Editor at 1:09 PM | Comments (0)

The toughening economic climate - A 'call-to-arms' for the procurement function

Recession.jpgAt present there seems to be two schools of thought regarding the impact that the global economic recession is having in South Africa. People are either sure it is real and are dramatic in their response, or they are pragmatic in a perception of resilience through non-exposure. Read more...

Posted by Editor at 11:57 AM | Comments (0)

Call for Papers - Tendering Best Practices and Effective Implementation of the bidding process conference

Tenders.jpgHow to effectively conduct Tendering and Bidding processes in line with World Class Practices in both the Public and Private Sector is the theme of the Tendering Best Practices and Effective Implementation of the Bidding Process - Conference to be held on 29-30 July 2009. SmartProcurement is calling for papers from interested (and even afflicted :)) parties ... Read more...

Posted by Editor at 6:42 AM | Comments (0)

Procurement and SCM impact on organisations' bottom-line - A SA government perspective

Sandile Ngcobo.JPGIn today’s environment, where globalisation is a reality, the role of purchasing and supply management has taken on an air of additional importance. “For organisations of all types (private or public sector), the challenge is to improve the quality of products and services whilst driving down costs." Read more...

Posted by Editor at 8:30 AM | Comments (0)

Taming Project Procurement: Better the Devil you Know than the One you Don't...

Rob Stuart.jpgIn South Africa large amounts of money are presently being spent through the public sector, especially on commodities such as infrastructure. “Procurement for these projects is a key function, the integrity of which can mean the difference between millions saved or wasted, time commitments met or missed, and social development requirement compliance or non-compliance. Traditionally, these projects are handled inefficiently since procurement usually buys commodities based on price, therefore removing all advantage by buying too much ‘just-in-case’ and ignoring the value of the integration of activities”, Rob Stuart, a Procurement Specialist at Volition Consulting Services, told SmartProcurement. Read more...

Posted by Editor at 11:43 AM | Comments (0)

Supply Chain Education - South African Challenges and Opportunities

The Challenges

Education.jpgThe supply chain skills challenge is experienced across the supply chain profession and well understood in all sectors of the economy.  In South Africa especially, we recognise that there are some significant problems.  Unfortunately, too much debate (and whining), and too little action, dramatically reduces our chances of success... Read more...

Posted by Editor at 11:20 AM

Rigorous Process Focus Required for Effective Strategic Sourcing

Strategic.jpgMany procurement organisations have embarked on Strategic Sourcing in recent years, with mixed successes.  "A lack of focus on the integration of the overall value chain has allowed sceptics to minimise the value of new generation procurement approaches.  Cobus Rossouw, Managing Director of Volition Consulting Services, told SmartProcurement."The way forward requires appropriate focus...
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Posted by Editor at 11:00 AM | Comments (0)

Imperial Logistics Acquires 50% of supply chain consultancy Volition

Volition Logo.pngImperial Logistics and Volition Consulting Services (Volition) announced that Imperial Logistics will acquire 50% of Volition with effect from 1 July 2008, subject to approval from the Competitions Authority. Imperial Logistics and Volition will aim to improve their service offering whilst further increasing their footprint in the logistics and supply chain industry.

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Posted by StaffWriter at 9:38 AM | Comments (0)

Finding and working with Suppliers in the food business where risk is rife

Food.jpgA food business is only as good as its supply chain's consistent ability to deliver the best produce at the best price. But what makes a good supplier and where and how do you find them?

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Posted by Editor at 6:00 PM | Comments (0)

"Open Book Costing" and "Cost Plus" can hamper Outsourced Logistics contracts.

Cobus Rossouw.pngThe commercial agreement between the principal buyer and the service provider of outsourced logistics has far reaching, long term consequences for both parties. Cobus Rossouw of Volition shares some practical insights with Smart Procurement on how to extract the maximum value from your service provider....

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Posted by StaffWriter at 1:05 PM | Comments (0)