Contract Management

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.

Integrity and competence a must in government procurement


Integrity in government procurement must be held to the highest standards on every RFP and tender issued

Stephen_Bauld.jpgStephen Bauld deals with so many issues related to the integrity of the request for proposal (RFP) process every week. As a government procurement expert, he is concerned about the way municipal procurement staff understand the policies and procedures they need to follow to issue documents to suppliers and contractors.

Visitors and exhibitors flock to the Smart Procurement World conference

 

FirstPic.jpgAs the second day of Smart Procurement World conference unfolds, more than 1000 visitors have come through to equip themselves with knowledge about procurement, supply chain, enterprise development and how to support Small, Medium and Micro Enterprises (SMME).

“Google can give you so much, but by attending this conference, I am hoping to find relevant suppliers, particularly black-owned female companies. We want our company to be in line with the B-BEEE Codes and thank goodness for this platform where one can source active and relevant suppliers,” said Tamsyn Louw, procurement professional attending the conference.

Zimbabwe procurement bill to correct procurement practices

 

robert-mugabe-un.jpgTo curb “unsound" procurement practices that are “slowing down” Zimbabwe’s economic growth a new Procurement Bill would be drafted and tabled in Parliament before the end of the year, President Robert Mugabe announced in his State of the Nation address.


The Bill will incorporate COMESA procurement guidelines which emphasise devolution of power to award tenders to procuring entities. These organisations will include government ministries, parastatals, state enterprises and local authorities, Mugabe said.

Department of Economic Development's R650-million procurement expenditure to boost township economy

 

lebogangMaile.jpgThe Department of Economic Development (DED) is finalising a partnership that will pump R650-million procurement expenditure into various townships across Gauteng, said Gauteng MEC for Economic Development, Environment, Agriculture and Rural Development, Lebogang Maile.


The partnership is spearheaded by retailer MassMart and will see the establishment of 500 retail shops within Gauteng townships. The project will be piloted across six Gauteng townships: Katlehong, Attridgeville, Sharpville, Randfontein, Alexander and Khutsong.

Managing supply risk - asking suppliers to share your supply risk

 

Supply_Bullwhip_effect.pngEvery business faces risks - the probability of events occurring - that can or will present challenges to their operations. Risk management is the practice of using processes, methods and tools to identify the level of probability, and then manage the ensuing risks.


In practice, this means identifying in advance what can go wrong in relationships between buyer and supplier. Failing to do this means you will be under-prepared and get some unwelcome surprises. A risk management strategy in procurement allows you to anticipate what may go wrong, thereby preventing disasters or serious financial losses.


Insuring is one way of mitigating risk. The question is who pays for this, the buyer or the supplier? Asks Elaine Porteous, in this month’s SmartProcurement.

Supplier cash flow vs Corporate promises

 

SiphoPilime.jpgMost inexperienced, small suppliers are so eager to supply that they hardly pay attention to the words ‘payment terms’. Yet the timing between cash outflows (as a business extends its service or sells a product) and inflows (as it receives payment for the said service or product) is the single most important factor in business growth, success and sustainability.


Considering that articles and research papers have proven that a lack of cash flow is one of the significant causes of the demise of small businesses worldwide, Sipho Pilime, The Hope Factory business mentor wonders if suppliers and buyers are willing to put payment terms under the microscope and admit that both sides have responsibilities in resolving the early-payment-saga, in this month’s SmartProcurement.

Fraud after contract award 6 times as frequent as fraud pre-contract award

 

ColinCram.jpgA strong, expert contracting and contracts management group is essential to combat fraud, CIPS Fellow and UK procurement consultant Colin Cram told delegates at Smart Procurement World in September.

Comedy of errors with supplier visibility

 

comedyerrors.jpgThere is something between Shakespeare and the Indian silver screen. For decades, Shakespeare’s works have inspired directors to churn out some of the most memorable hits on the big screen. The perennial favourite theme is based on one of his earliest plays, The Comedy of Errors. The play depicts the story of two sets of identical twins that are separated at birth and later reunite in their youth after being tangled in a series of confusions and twists based on mistaken identities.


Managing an average portfolio comprising thousands of suppliers, supply chain professionals must have witnessed the supplier duplication comedy of errors being played out in their day-to-day work far too often. The only difference in this case is that no one is laughing, says Keertan Rai, Solutions Marketing Manager at Ariba, a SAP Company, in this month’s SmartProcurement.

Public sector's wasteful expenditure hits R28-billion

Terence_Nombembe.jpgThe annual audit of South Africa’s provincial and national government bodies revealed that R28.4-billion was lost to irregular spending - R6.25-billion more than the previous year, said the Auditor-General’s report.

In the report, auditor general Terence Nombembe blamed weak internal controls, poor political leadership (from the accounting officer and/or executive authority) and a disregard for procurement rules for the haemorrhage.

Can contract management rescue local government procurement?

AG.JPGThe Auditor General’s (AG) report on Municipalities made headlines for all the wrong reasons; there is something seriously amiss at the local Government level.

Paul Maddison, MD of Realyst Contract Management, raises the question of how Government can help the local entities right the ship, in this month’s SmartProcurement.

 

National Treasury Framework roll-out offers contract improvements

ServiceDeliveryProtest.jpgThere is significant value to be had by government entities adopting the first phase of National Treasury’s Contract Management Framework (The Framework), Paul Maddison, Managing Director at Realyst Contract Management, tells SmartProcurement.

Contract Management Framework - "try the public sector pudding"

Parliament.jpgA contract management framework may not be applicable in the private sector owing to greater autonomy in how organisations in the sector operate. However, the lessons the public sector is learning in contemplating the requirements of the National Treasury Contract Management Framework apply equally in the private sector, writes Paul Maddison of contract management advisory company Realyst, in this month’s SmartProcurement.

Government CMF can take battle to fraudsters

Parliament.jpgThe consensus among procurement professionals is that the Accountant General’s initiative to outline a Contract Management Framework for government contracts is long overdue and is to be welcomed.

Database administrator aids PPPFA adoption in Western Cape

Partnership.jpgAriba (previously Quadrem) is assisting the Provincial Government of the Western Cape (PGWC) to implement its policy to only contract with businesses duly registered on the Western Cape Supplier Database (WCSD), Catherine Hills, Partner: Global Accounts at Ariba, tells SmartProcurement.

Adopting contract management framework a lesson for government

Parliament.jpgGovernment entities are making progress implementing National Treasury’s (NTs) Contract Management Framework released in 2011, Paul Maddison, Managing Director at Realyst Contract Management, tells SmartProcurement.

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