Commentary

What is affecting procurement? Where is the profession going?

 

DuncanBrock_SPW.jpgThere’s a lot going on. The changing and challenging times we currently face are probably greater than they’ve ever been. What is the implication for procurement? What do we need to keep abreast of and continually work on?

Duncan Brock, Director of the Chartered Institute of Procurement and Supply, offered his insights during his opening address at the SmartProcurement World Gauteng conference in September.

How to train your CEO to get what procurement needs

 

EnricoRizzon.jpgThe majority of CPOs are still reporting three levels down from the CEO. Enrico Rizzon, Partner, Procurement & Analytics, A.T. Kearney Australia outlines how procurement can build a strong business case!

Procurement leaders in large corporations face a tough business environment. Facing low growth, disruption, increased competitive pressures from well-funded private equity firms and nimble technology-focused innovators, the demand is growing for creative procurement services to deliver not only on cost improvements but also create new solutions that help the overall business strategy.

Influence of procurement departments on marketers

 

JohannaMcDowell.jpgAgencies working – or hoping to work – on major corporate accounts in the advertising, marketing and communications industry can no longer ignore or misunderstand procurement departments and their importance in winning both government and corporate clients.

Johanna McDowell, Independent Agency Search & Selection Company (IAS) managing director, warns that the B-BBEE Amended Codes of Good Practice released by the Minister of Trade and Industry in mid 2016 are designed to ensure that procurement is taken seriously by companies that intend to survive, in this month’s SmartProcurement.

Short-term focus on long-duration procurement

 

Stephen_Bauld.jpgThe problem of short-term focus is especially serious when dealing with long-duration procurement, for instance, in the case of a building. Stephen Bauld, a government procurement expert, unpacks the need for long-term thinking in the public sector.

September PMI up, but still subdued

 

glass_ceiling.jpgThe seasonally adjusted Absa Purchasing Managers’ Index (PMI) rose by 0.9 index points to 44.9 in September 2017. Despite the second straight improvement, the index remained well below the neutral 50-point mark for a fourth month. Encouragingly, the rise was supported by the key subcomponents, with four out of five increasing compared with August.

Procurement shines brightest on a burning platform

 

GuyStrafford.jpgEconomic woes, political uncertainty and digital disruption might trouble your CEO, but it should delight the CPO. After all, procurement can perform best on a burning platform, says Guy Strafford, Chief Client Officer, Proxima Group.

August PMI improves from July slump

 

ManufacturingProduction.jpgThe seasonally adjusted Absa Purchasing Managers’ Index (PMI) improved to 44 index points in August, after slumping to its lowest level since 2009 in July (42.9 points). The improvement was broad based, with four of the five major subcomponents increasing in August. However, despite ticking higher, the key sub-indices remained below the neutral 50-point mark. This suggests that the manufacturing sector is still under significant pressure and does not bode well for manufacturing output (and overall GDP) in Q3 2017.

MCIPS-qualified professionals in Sub-Saharan Africa earn 38% more

 

SalarySurvey.png• 57% of Sub-Saharan professionals received a salary increase in the last 12 months
• In a change from 2016, when the private sector reported the highest average salaries, last year's top performer was the charity/not-for-profit sector
• Men earn more than women at more senior levels, especially at advanced professional level where the pay gap is 26%
• Unlike the UK and in line with last year, women tend to earn more than men at managerial, operational and tactical levels
• Despite a downturn in the economy, 41% received a bonus in the last 12 months

PMI - SA's manufacturing sector performance disappoints

 

PMI_down.jpgThe seasonally adjusted Absa Purchasing Managers’ Index (PMI) had a tough start to Q3 2017, declining by 3.8 points to 42.9 in July. The headline PMI was last at such a depressed level in the second half of 2009 - a period of very weak underlying economic performance. All five of the major PMI sub-indices declined in July.

Human talent, not technology, still the critical factor in procurement

 

Procurement_Talent.pngAccording to 1st Executive, the human element, rather than technology, is still the critical factor in the procurement process. The specialised procurement and supply chain consultancy argues that the human factor is increasingly overlooked in the procurement process, in favour of automation. 1st Executive has urged firms to review their existing e-systems, to ensure that they are maximising the potential of their suppliers’ specialist knowledge. The firm warns that, failing to do so, could mean that procurement misses out on opportunities to add value.

PMI indicator does not bode well for output growth

PMI_July2017.jpgThe seasonally adjusted Absa’s Purchasing Managers’ Index (PMI) declined from 51.5 index points in May 2017, to 46.6 index points in June 2017. The Bureau of Economic Research (BER) said that “the deterioration was broad-based, with four of the five main subcomponents moving lower, compared with May.” The BER added that “the recent volatility is probably driven – or at least exacerbated – by continued uncertainty about the outlook for the domestic economy.” The uncertainty likely results in more erratic domestic orders, which may filter through to more volatile output patterns on a month-to-month basis.

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.

BEE: look beyond regulation to be effective in supply chain

 

Parliament.jpgBlack Economic Empowerment (BEE) is one of the most highly regulated aspects of the South African business landscape today. The most recent changes to the regulations have both large corporate businesses and smaller businesses returning to the scorecard drawing board. Louis Coetzee - General Manager of the Ecsponent Development Fund (part of JSE-listed African financial services company Ecsponent Limited) - told SmartProcurement that this has contributed to inhibiting economic growth, and the stunting of competitiveness in the industry.

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.

When does labour become a commodity to be procured?

 

Commoditised_Labour.jpg

Mluleki Ntlemeza, a supply chain consultant wonders if there is point at which labour should be procured by procurement, and not through traditional HR processes, in this month’s SmartProcurement.


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