Procurement Strategy

9 success factors for implementing a procurement transformation project

 

Implement_procurement_transformation.jpgMore South African organisations are starting to recognise the value that procurement transformation initiatives bring to the bottom line. Successful procurement transformation projects reposition the source-to-pay process for success, across the entire organisation. The entire source-to-pay process is made efficient and highly collaborative, providing organisations with a competitive advantage.

Procurement transformation can be defined as a process - with an element of flexibility - in which an organisation’s capability and procurement behaviour is altered to attain desired results (such as the achievement of maximum value through the procurement function) and attain long-term sustainability.

Supply Chain Partner, a specialist supply chain service provider, discusses 9 critical success factors (or pitfalls if not considered…) that can make or break your procurement transformation success, in this month’s SmartProcurement.

Procurement models ineffective, say 51% of executives

 

Hands_raised_survey.jpgA survey conducted by the Ayming Consulting Group, found that more than half of the procurement executives (51%) interviewed do not think their current procurement model is effective. The survey involved a number of executives from different size businesses, across a range of sectors.

The survey of 200 executives - including CEOs, CFOs and CPOs - found that only 17% of respondents thought their business's procurement function was "entirely strategically focused". Fewer than one in five, thought the function had driven significant value for their organisation in recent years.

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.

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%)”.

Buy local or face audit findings!

 

RobDavies_ProudlySA.jpgUnder the World Trade Organisation’s agreement on Trade-Related Investment Measures, The South African government cannot prescribe to the business sector that they must follow localisation (75% local content in purchases) in the same way it prescribes to public entities.

“We don’t have that ability, and are challenged internationally [if the topic of localisation is broached with international organisations],” said Minister of Trade and Industry, Rob Davies.

However, some business organisations have embraced the spirit under which the Economic Development Department (EDD) negotiated the local content designations, to drive economic development in the country.

Minister Davies shared some of these corporate-level local procurement stories at Proudly SA’s Buy Local Summit, in early April.

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.

What does procurement agility mean in 2017?

Gordon_Donovan.jpg

Gordon Donovan, procurement and supply chain manager, discusses the term ‘procurement agility’, and the ways in which procurement organisations can become more agile in their activities. In this month’s SmartProcurement he gives some practical takeaways for procurement professionals to consider when applying in their own environments. 

Procurement fraud - why does it continue to thrive?

 

procurement-fraud-scandals.jpg“Procurement fraud happens within the entire value chain of organisations. Because decisions are made on every level, some procurement officials get a chance to manipulate the system, and accept bribes,” says Lebogang Letsoalo, Director at Sincpoint Pty Ltd.

 

What to do in your first 90 days leading a procurement division

 

Sanet.jpgChanging jobs or even organisations can be daunting. Managing the change is a strategic process requiring a strong sense of visionary leadership, a clear picture of the objective and reasons and a strong process of communication and involvement.

Sanet Shepperson, a Procurement Executive at Cell C, provides a ‘play book’ on how to walk in, take the reins and lead a procurement department.

Sustainable procurement - start somewhere, it's better than not starting at all...

 

LorraineJenks.jpgResponsible, sustainable, green procurement means selecting products and services that have the least negative impact on the environment as well as the highest positive impact on communities and people. Profit and growth need not be compromised; in many instances it is myth that going green costs more, says Lorraine Jenks, advocate for green procurement in this month’s SmartProcurement.

9 tips to keep your procurement career on track


HelpfulTips.jpg

Many people think about their career goals only when they start looking for a new job, or at their annual appraisal, but ongoing career planning and management is vital for any procurement professional.

Nicky Taberner, Director at Hays Procurement & Supply Chain, gives her top tips for keeping your procurement career on track.

8 ways procurement can radically reduce costs

 

GibsonSibanda.pngProcurement-managed expenditure accounts for an average of 65-75% of many organisations’ outflows. Tough economic situations, therefore, require procurement professionals to continually implement and manage cost reduction programmes.

As many organisations continue to search for ways to reduce costs, there should be an agreed and well-defined programme for and by supply chain professionals to cut costs. Gibson Sibanda (MCIPS), general secretary of CIPS Zimbabwe branch, outlines eight initiatives and contributions that procurement practitioners can adopt to reduce and contain costs, in this month’s SmartProcurement.

Buyers must know what is made locally before they can consciously 'buy local'

 

PhillippaRodseth.jpg“Buyers need to understand the importance of ‘buying locally’ and have the ability to identify locally manufactured products. By doing so they actually buy back jobs,” said Philippa Rodseth, Executive Director of the Manufacturing Circle.

Speaking at an Economic Policy Dialogue hosted by the Department of Trade and Industry (dti), Rodseth said that there is a need to educate consumers to know what is locally produced when making a purchase. She said it is a strong move towards full scale industrialisation and inclusive growth.

To transform procurement, stop thinking about procurement

 

IanGeorge.jpgMaking a significant impact on an organisation and its key stakeholders is statistically likely to end in failure: it is a pattern that has been repeated for decades and the reasons are many and complex. However, by applying some key strategies, the potential for success can be improved significantly, writes Ian George, from the Procurement Leaders Network and Transformation Lead at ProPar consulting, in this month’s SmartProcurement.

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