Change

Procurement's value will be judged on its alignment with the organisation's strategy

 

ShirazSarang.jpgIs your procurement division a purchasing or a procurement function? More importantly, into which category does your CEO and other key executives place your function? Shiraz Sarang, CPO at Nedbank discusses how procurement professionals can elevate the importance of the procurement function within an organisation, in this month’s SmartProcurement.

Raising procurement's image - one person at a time

 

Meerkat.jpgWho’s willing to stand up and bear the flag of procurement pride and improve our image? Elaine Porteous wants reinforcements to help raise the function’s status up to where it belongs.

Five ways to streamline your procurement

 

IanHendry2.jpgRunning a successful business is stressful. Very stressful, in fact. Arguably the biggest challenge facing chief procurement officers and procurement managers is cashflow. Ensuring that you have the right stock levels without sacrificing pricing, or incurring wastage, will go a long way in alleviating month-end pressure. Open communication between the procurement- and finance departments will more than likely prevent crises of oversupply.

In this month’s SmartProcurement, Ian Hendry - Corporate Card Product Manager at Nedbank Corporate Card - explores five ways to help you streamline your procurement process, and improve your procurement function.

Manufacturing outlook down as PMI slumps

 

PMI_down.jpgThe seasonally adjusted ABSA Purchasing Managers’ Index (PMI) slumped in April 2017, after a solid performance during Q1 2017. The index fell to 44.7 index points from an average of 51.9 during Q1.

Procurement inefficiencies uphold poor intra-Africa trade

 

LindiweZulu.jpgThe impact of ineffective procurement in Africa has been estimated at US$31,5-billion - US$24,9-billion for sub-Saharan Africa alone - in terms of value leakage – by auditor KPMG.

The inefficiencies are caused by procurement organisations struggling with basic issues around delivering value, such as low use of technology, inadequate skills and non-compliance with procurement policies.

“It is difficult to separate this ineffective procurement from Africa’s trade - they are two intricately linked aspects, which link directly to intra-trade on the continent”, said Minister of Small Business Development Lindiwe Zulu, at Smart Procurement World Western Cape. Minister Zulu added that, “intra-trade accounts for only 10 - 12% of the continent’s trade, in comparison with high levels of inter-regional trade recorded in Europe (60%) and in Asia (40%)”.

Supply chains and adjusting to Trump: think local and global

 

KateVitasek_540x800.JPGIt’s still early in the Trump presidency, but not too early for supply chain professionals to begin planning for what could be major challenges in global markets and trade agreements, especially if President Donald Trump follows through on border tariffs, the dismantling of existing trade agreements, and other “America First” protectionism ideas he has shared as part of his Twitter-storm rhetoric, writes Tennessee University Professor in Supply Chain Management, Kate Vitasek.

The Future of Procurement - 5 challenges to the profession & strategic function

Jeremy_Kirsten.jpgJeremy Kirsten, MCIPS, puts pen to paper about where the procurement profession has come from, and where it is going.

Procurement as a profession is, I believe, in its infancy, as it only came into its own in the late 1980’s. Its growth from the mid 1990’s to date has been phenomenal. When I first started working, purchasing was not always carried out by professional purchasing officers, but by others that may have inherited the function. During this time, a new concept ‘Materials Management’ arose.

March PMI dips slightly - results compiled before President's cabinet shuffle

 

PMI.jpgThe Purchasing Managers’ Index (PMI) managed to hold on to recent gains and dipped only slightly lower in March 2017. The index declined to 52.2 points from February’s 52.5 points, remaining above the neutral 50-point mark for a third straight month, noted the Bureau for Economic Research (BER).

10 things to consider when selling performance improvements to government

 

StephenBauld.jpgIt is important to understand the process procurement managers go through before they will take the risk to adopt a new product for use in a municipal setting. Not only is it the many rules, regulations, bylaws and municipal documents, it is also how government procurement personnel react to new ideas related to goods and services.

“For government it relates to past performance in other municipalities, or some assurance that the good or service will be measured against some standard that is used to make sure the product is equivalent to what they are using at the present time,” says Stephen Bauld, President & CEO at Purchasing Consultants International in this month’s SmartProcurement.

SA 42nd for global supply chain resilience

 

SA-flag.pngMeasured according to different dimensions of supply chain risk, South Africa was ranked 42nd out of 130 measured countries and territories in 2016.

Insurer FM Global's Resilience Index ranks countries most and least exposed to different dimensions of supply chain risk, having measured their resilience to supply chain disruptions.

The survey data examines nine key drivers of supply chain risk and groups into three categories: supply chain, risk quality and economic factors.

G20 Summit: supply chains disrupted for clear blue skies

 

SupplyChainSummit.jpgIn preparation for the upcoming G20 summit in China this September, the Shanghai Environmental Protection Bureau (SEPB) issued an order for an estimated 1 000 factories within a 300-km radius of Shanghai to cut down production.

This measure was enacted to reduce pollution before world leaders arrive for the event. So how will this affect global supply chains?

This year, China hosts its first-ever G20 summit in Hangzhou, a city situated 240 kilometres south-west of Shanghai, where significant industrial, construction and residential emissions affect the air quality of its neighbouring cities.

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?

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.

Commerciality and the outlook of CPOs in uncertain times

 

CliveGovender_600x752.JPG“In these tough times, procurement and supply chain functions need to be agile to take care of the opportunities that present themselves, said Clive Govender, former head of Supply Chain for Anglo American Platinum at the Smart Procurement World Western Cape Conference.


There is considerable uncertainty in South Africa’s immediate future: economically, commodity prices have fallen to low levels and, at a societal level, the country has seen a great deal of unrest. There has been a high level of staff retrenchment, beginning in the mining sector and spreading across to other sectors, noted Govender.

Why is change management important for procurement and supply chain professionals?

  

TlaleMosimane.jpgThe only thing that stands between success and failure for an SME or QSE is opportunity. For suppliers to be defined as excellent, as trusted and the “go to supplier”, they have had to be provided with opportunities to perfect their craft. Opportunities as it takes time, effort and continuous improvements to master a craft to properly resourced, capable and reputable businesses that are supported by your SD initiative, says Motlalepula Mosimane, Senior Change Management Consultant and Director at Change Agility, in this month’s SmartProcurement.

White Paper: 4 Key benefits for Procurement Departments using Corporate T&E Cards

 

images.jpgAs procurement function has to deal with many small transactions, corporate cards provide distinct benefits for at least five different functions within a procurement department: treasury, accounts payable, financial systems, audit/compliance and budgeting/planning, explains Virginia Miller, Business Leader, CPS Product Development of MasterCard in this month's SmartProcurement. 

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