Commodities

Travel benchmarks point to behaviour massively driving costs in 2017

 

AlanLow_2013.jpgThe domestic corporate travel market is set to undergo many subtle changes in 2017, says Alan Low of category benchmarking company Pi. With a forecast of stagnant economic growth, downgrades and political uncertainty, organisations will be looking for more savings and greater efficiency.

The interplay between travellers, travel managers and service providers, such as Travel Management Companies (TMCs) will become vital to managing traveller behaviour and travel processes.

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.

Failed supply chain policies led to Eskom's Tegeta payments - Corruption Watch

 

BenNgubane.pngEskom failed to follow its own supply chain policies, the PFMA and Section 217 of the Constitution when making pre-payments to the Gupta’s Tegeta exploration and resources to secure coal supply, said Corruption Watch in a statement.

“We are concerned about the nature and scale of procurement irregularities at Eskom,” said Corruption Watch’s executive director, David Lewis.

Food safety reliant on efficient and transparent supply chain systems

 

FriedelSpies.jpgFood safety is a priority throughout the whole supply chain. From manufacturer, its suppliers and logistics service providers, to a retailer and ultimately the end-user, critical care needs to be applied to ensure that food safety and hygiene are not compromised.

But, how best to manage food safety across the global supply chain while adhering to regulatory requirements remains a difficulty for the food industry.

“It has become more than a necessity, but an obligation for logistics service providers to provide clients with necessary controls to ensure best practices and operations when it comes to food safety and hygiene” say Friedel Spies, Business Development Director in South Africa, ID Logistics in this month’s SmartProcurement.

PMI down 1.2 points, but began Q3 strong

pmi.jpgThe seasonally adjusted Barclays Purchasing Managers’ Index (PMI) fell by 1.2 index points to 52.5 in July. Despite the slight drop, the current level still signals that the sector experienced a reasonably strong start to Q3 2016 after a robust performance during Q2, reports the Bureau for Economic Research.

The PMI remains in line with recent Eurozone manufacturing PMI readings (a key export market for South-African produced goods). Initial data releases suggest that the Eurozone economy has so far remained relatively resilient after the UK’s brexit vote, which is encouraging for the local sector’s export performance going forward.

Purchasing commodities to achieve more than BEE compliance

 

LindelweKunene.jpgThe BEE Codes have been top of mind since the beginning of 2016, unfortunately it is for the wrong reasons. Recent headline-grabbing stories of unprecedented racial tension have revealed a greater need to intensify efforts to achieve real transformation in South Africa. Despite being seen as a complex technological commodity, the provision of printers and printing technology cannot be overlooked in achieving that transformation.


Traditionally viewed from a cost and total cost of ownership (TCO) perspective, it is essential for procurement to consider factors in addition to the costs of office output devices. Failing to observe the level to which a supplier is engaging in economic transformation, is overlooking the opportunity to move beyond mere BEE compliance and engage in economic transformation, says Lindelwe Kunene, Nashua’s Chief Human Resource Officer in this month’s SmartProcurement.

R3 600 - the cost of a purchase order in government

 

NhlanhlaNene.jpgThe central procurement office (CPO) created by Treasury to leverage volumes in the government has already led to savings amounting to billions of rand, says Finance Minister Nhlanhla Nene.


"The cost of a purchase order will be reduced from approximately R3 600… to between R500 and R750 using the new technology platforms,” said Nene, in a written reply to a parliamentary question by Democratic Alliance MP Malcolm Figg.

SA freight set to triple by 2030 due to costs of other modes

 

ZaneSimpson.pngEscalating road tariffs, increasing driver fees, rising maintenance costs and erratic fuel prices, along with the amount of long distance freight compared with Europe, are set to cause problems for South Africa’s logistics sector, according to Stellenbosch University’s Logistics Barometer.


The current 781-million tons of freight moved is likely to triple over the next three decades, based on the current demand growth rate.


The well-being of the sector in South Africa is crucial, but it is running out of options, said Zane Simpson, from the university’s department of logistics.

On-demand strategic sourcing and category management services

 

Chain.jpgAs sourcing becomes increasingly responsible for supplier relationship and contract management, personnel are often stretched too thin across multiple categories and suppliers to effectively manage expenditure. Furthermore, headcount within procurement groups typically grows at a rate insufficient to meet those increasing demands.


Utilising the internal procurement organisation in collaboration with third-party support can lead to more innovative solutions, new technologies, optimised supply chain strategies and improved category management.

SA Logistics must make bold steps to drive costs down


Increased fuel price still biggest cost driver

 

10StateOfLogistics.jpgRising costs and the global economic situation spell out increased competition and tighter margins in the logistics industry. Driving down the cost of logistics and making South Africa more competitive will require no less than bold steps forward, finds the 10th State of Logistics Survey.


Published by the Council for Scientific and Industrial Research (CSIR) in collaboration with Imperial Logistics and Stellenbosch University, the survey reports that South African logistics has moved beyond survival to an optimised mode, where costs, inventories and lead times have been minimised within individual supply chain functions.

Managing print helps you achieve your procurement mandate

 

ChristianBell.jpgAs a procurement specialist you are expected to find products and services for your business at an acceptable price that meets the business need. However, when it comes to managing the print procurement process it is essential to consider a number of factors in addition to pricing, Christian Bell, Head of Sales and Marketing at Point, tells SmartProcurement.

Is travel and expense expenditure NB in your organisation?

  

Calculator.jpgShirley Le Roux, MD of TraveluXion gives SmartProcurement her insights into the answer to this question that has resulted in companies not having visibility of all potential T&E expenditure prior to approval against applicable budgets, and thus not extracting the associated business value. 

 

Do Voyager Miles make commercial sense?

Airline_usage_by_carrier.pngWithin the context of Purchasing Index's (PI's) Domestic Air Travel benchmark report, SAA continues to make up the bulk of domestic carrier usage (as indicated in the graph alongside for the five benchmark routes for the period Aug-Oct 2012).

In this month’s SmartProcurement Alan Low wonders if this is justifiable?

Top 4 travel and expense management challenges

ShirleyLeRoux.pngShirley Le Roux, MD of TraveluXion gives SmartProcurement her insights into the top challenges and key focus areas around Travel and Expense Management as per the Aberdeen Group Survey published in March 2013.

Greater value lies in procured print-manage services

ChristianBell.jpgThe true value of print expenditure is becoming increasingly evident with the evolution of more sophisticated Enterprise Resource Planning (ERP) accounting systems, which is increasing the focus on the print commodity and highlighting the need for companies to gain greater insight into and control of this product, Christian Bell, Head of Sales and Marketing at print management consultancy Point says in this month’s SmartProcurement.

Sleeping easy when travelling into Africa? Tread carefully.

KeleMohatle.JPGTravelling into Africa can be daunting for the business traveler and the corporate travel manager, says Kele Mohatle, CEO of travel procurement consultancy NaKo Consulting, in this month’s SmartProcurement.

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