Negotiation

What if procurement savings didn't matter?

Madeleine_Tewes.jpgMost say that savings are just one component of this value proposition and that we need to look outside of savings into other areas of value, like stimulating innovation, supporting the organisation’s corporate social responsibility goals and reducing risk throughout the supply chain. Everyone agrees with these articles and, as we map out KPIs for our procurement department or individuals, we ensure savings is just one, albeit important, metric that their value will be evaluated on.

What happens, though, when you remove the value of savings altogether from a procurement department and its individual members? Even from the offerings of procurement consultancies that often focus on savings as a way of convincing CPOs to accept their services? asks Madeleine Tewes, Project Manager.

Expense reconciliation: tips to improve your process

 

HelpfulTips.jpgIs the financial year-end getting the better of you? Are suppliers unco-operative? Are you late with their payments? Are you over budget and struggling to balance the books?

If any of the above scenarios apply to you, take heart in knowing that you’re not alone.

Balancing inconsistent supply chain management practices with increasing costs and pressures to reduce those costs, as well as heightened compliance around invoicing are just some of the headaches procurement managers face daily, Pascalle Albrecht, National Travel and Procurement Manager at Nedbank, tells SmartProcurement.

Negotiating with consultants - the insider perspective

 

BillMichels.jpgIn the indirect category one of the tricky negotiations is consultants. In many cases, they are brought in at high levels of the organization for their specific expertise. Often they have already been awarded the contract and are ready to start the assignment with the contract being the clean-up details. Has this ever happened to you? Bill Michels, CEO and founder of Aripart Consulting, gives some hints to improve negotiations with consultants.

3 new-year negotiation resolutions

 

ChrisWebber.pngThis strapline is the inspiration for many resolutions in January, designed to make you fitter, healthier or to become a better person.

Returning to work after the festive break, to an inbox bursting with adverts and stories promising a leaner and better you in 2017, Chris Webber, Practice Head for The Gap Partnership, was inspired to consider what negotiators should resolve to change this year to be more effective.

 

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.

Nice-guy negotiators come first, says United Nations

negotiator.jpg
“A good negotiator should be a nice guy,” according to Khaled Chatila, senior procurement officer for the United Nations’ World Food Programme in Egypt.


“You should be caring, clear and an active listener who is honest and willing to compromise or offer solutions,” said Chatila, at the CIPS Middle East Conference focus day in Dubai in April.

Developing countries can improve public services through fair, open procurement practices

 

GTY_lagos_nigeria_tk_140507_16x9_992.jpgOrganisations continue to face considerable obstacles, linked to transparency, efficiency and other ills of government procurement systems around the world, a new World Bank Group report finds.


Such obstacles negatively affect the ability of small and medium sized organisations to do business with governments, says the Benchmarking Public Procurement (BPP) 2016 Report, which assesses public procurement regulatory systems in 77 economies.

Draft regulations have the "potential to legalise corruption"

 

ReformsCorruption.jpg“The new draft regulations, if they are accepted, will legalise wholesale corruption at an even grander scale than we are currently witnessing,” said Helen Zille, Democratic Alliance (DA) premier of the Western Cape Government.


Speaking on amendments to Preferential Procurement Regulations put forward by government, the premier said that amendments to the procurement law “will cause the collapse of the South African economy”.

New study highlights directors' perceptions on supply chain negotiations

 

DirectorNegotiations.jpgInitial outcomes from a study are finding that while finance and legal are still seen to be the most powerful functions during the negotiation process, supply chain directors are becoming increasingly involved in initial negotiations with potential suppliers.


The six-year study, entitled 'Director Level Perceptivities on Aspects of Supply Chain Management', to be released by Professor Douglas Boateng and the PanAvest Partnership this month, seeks to understand the perceptions held at director-level on aspects of Supply Chain Management by examining an array of issues related to negotiations, agreements, contracts and bargaining.

Return to 'SCM first principles' before scheduling more SAP training

 

StevenFreemantle2.JPGWith daily technological advances in the SAP world, focus tends to fall on the next-best technology and users forget that they already use a set of powerful basic supply chain management (SCM) tools. In fact, users may have never known about these SCM tools, and if they did, they may have 'lost' them through staff attrition over the years.


While adopting new developments may be key to keeping up with the times, users must not forget that any addition to a SAP suite of tools relies heavily on the original technology, says Steven Freemantle of SweetThorn Thought Leadership in this month’s SmartProcurement.

Stationery - Managing and optimising a complex category

 

AlanLow_2013.jpg“Recent benchmark reports have shown price variances for specific items of more than 60% and on A4 paper in excess of 40%.”


Alan Low has seen both sides of the stationery supply world: from benchmarking stationery supply arrangements for many of South Africa’s top organisations, to being the Managing Director of a UK stationery company in 1980s.


“From a supplier perspective, the cost of fulfilment (the procure-to-pay process for the supplier) is inordinately large when compared with the average value of a stationery order. When you factor in service requirements such as to-desk delivery and no minimum order value, making a profit becomes even harder,” says Low, of Purchasing Index (PI) in this month’s SmartProcurement.

Negotiate, agree on specificities and then contract

 

NegotiationGrowthAfrica.jpgIn order to reverse the current bargaining trends in Africa, it is important that supply chain organisations, professionals, executives and directors move away from price-chiselling practices towards long-term negotiation, said Professor Douglas Boateng, the founder and CEO of PanAvest International and Partners.


Speaking at the Institute of Directors Zimbabwe’s ‘Director of the Year Awards’, Boateng insisted that not only will a shift towards engaged negotiation facilitate organisational success and value creation, but it will also help to move the Zimbabwean supply chain environment in line with industry specific best practice.

A buyer's 11-point contract review checklist

 

ContractChecklist.jpgEvery contract seems to provide adequate protection when it is negotiated and signed. However, during contract performance, disputes often arise between buying organisations and their suppliers.


The following checklist, from Next Level Purchasing, aims to help you review your contracts before signature so that you avoid some of the most common procurement contract pitfalls.

Long-term value suffers when bargaining is confused with negotiating

 

DBoateng.JPGA relative lack of negotiation on the African continent is hampering region-wide service delivery, organisational value chain performance and competitiveness and broader socio-economic development, among other things. In the increasingly competitive supply chain environment organisations, businesses and individuals are continually seeking ways to ensure sustainability, competitiveness and growth. While numerous strategies and tactics are being implemented to achieve this, focus tends to remain on bargaining for short-term goals and price-orientated benefits, instead of negotiating for long-term value creation, Professor Douglas Boateng, founder and CEO of PanAvest International and Partners, tells SmartProcurement.


Drawing on a sample of approximately 64 international organisations, including Fortune 1000, FSTE 250, and JSE 100 companies, as well as state-owned enterprises and government departments, a recent PanAvest International and Partners-funded study investigated current opinions related to the importance of negotiation skills among supply chain professionals.

A 21-point negotiation checklist

 

NegotiationChecklist.jpgCan a negotiation checklist improve your results?


Preparing for a negotiation is critical to success. Though not intended as a substitute for learning, preparing this checklist, from Next Level Purchasing, can steer your negotiation preparation for great results.

Tricky procurement ethics questions and related answers

 

Triple_Bottom_Line.jpgUnethical behaviour begins with a choice. But, once begun it is a downhill slide on a slippery slope. Some professionals justify their behaviour by judging themselves against their intentions rather than against their actions. However, a decisive litmus test is whether you would feel comfortable if the press spoke to your suppliers about your relationship with them.


In this month's SmartProcurement we provide some solutions to a few tricky situations in which procurement professionals will likely find themselves at some point in their careers.


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

Career opportunites

Operations Manager

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Our client within the FMCG industry with a ...More

Warehouse and Distribution Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
An exciting opportunity awaits for a Warehouse and ...More

Demand Planner

  • <500 000 Permanent
Get an opportunity to be part of one ...More

Procurement Manager

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
An opportunity for a seasoned Procurement Manager, who ...More

Industrial Engineer

  • >500 000 Gauteng Industrial Engineer Permanent Procurement Consultant
An exciting opportunity that offers extensive exposure on ...More

Deputy Director: Procurement

  • >500 000 Contract Procurement Management Procurement Officer / Specialist Western Cape
Department of Economic Development and Tourism:Procurement Specialist, Ref ...More

DEMAND PLANNING MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Projects / Category Management
(Total Cost to Company R750k – R900K) excluding ...More

GLOBAL SUPPLIER PERFORMANCE MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Salary: R 1.3M –R1.5M, dependent on level of ...More

GLOBAL CATEGORY MANAGER

  • >500 000 Contract Gauteng Procurement Consultant Projects / Category Management
Total Cost to Company R1mil – R1.2mil excluding ...More

Project Manager

  • >500 000 Contract Procurement Management Projects / Category Management Western Cape
 Description:A well-known retail organization is looking for an ...More

PROCUREMENT ANALYST

  • >500 000 Analyst Gauteng Permanent Procurement Management
Description:A leading infrastructure development group with strong presence ...More

Commodity Manager: Fuels and Lubes

  • Commodities Gauteng Permanent Projects / Category Management
 Ensuring continuity of supply in line with business ...More

Senior Facilities Manager

  • >500 000 Commodities Gauteng Operations, Planning & Inventory Permanent
(Total Cost to Company R800K – R900K) Johannesburg Our ...More

ENGINEERING STANDARDS MANAGER

  • <500 000 >500 000 Gauteng Industrial Engineer Permanent Procurement Management
(Total Cost to Company R350K – R550K) JOHANNESBURGYou ...More

Supply Chain Analyst

  • <500 000 >500 000 Permanent Procurement Officer / Specialist Supply Chain Western Cape
(Total Cost to Company R350K – R550K)  SOUTHERN ...More

Security Manager

  • <500 000 >500 000 Gauteng Permanent Projects / Category Management Strategic Sourcing
(Total Cost to Company R350K – R550K) JOHANNESBURG This ...More

Demand Planner

  • <500 000 >500 000 Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R450k – R550k, dependent ...More

Procurement Specialist-Randburg

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
(Total Cost to Company R700k – R800k including ...More

Solutions Architect

  • >500 000 Gauteng Industrial Engineer Permanent Projects / Category Management
(Total Cost to Company R1.3Mil – R1.1Mil including ...More

MANUFACTURING MANAGER - OLIFANTSFONTEIN

  • >500 000 Gauteng Permanent Projects / Category Management
(Total Cost to Company R850k – R950K including ...More