Sourcing Strategy

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.

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%)”.

Identifying and mitigating global sourcing risks

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Before you start, ensure that you have the best global sourcing and product experts that you can afford, says Sanet Shepperson (MCIPS) in this month’s SmartProcurement.

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.

Short-term SCM investment for long-term savings

IanNeilson.jpgThe City of Cape Town has leveraged its supply chain management policy to grow its economy, procure sustainably and create jobs. And save money, of course.

Opening the Smart Procurement World Western Cape Conference, the city’s Executive Deputy Mayor, Alderman Ian Neilson gave delegates an insight into the City’s supply chain efforts to create employment for Cape Town’s people, promote resource efficiency, reduce negative environmental effects, and promote the competitiveness of local businesses.

When does labour become a commodity to be procured?

 

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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.

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.

Q&A with Lenovo's VP of Global Procurement


GlobalProcure.jpgChallenges of Global Procurement


Rob Handfield
, Co-Director of the Supply Chain Resource Cooperative at North Carolina State University (SCRC), recently spoke to John Zapko, Vice President of global procurement for technology company Lenovo, about what’s going on in the world of global procurement. Zapko has procurement authority over all software, Latin America, and emerging markets.

R H: What do you see as big challenges facing Lenovo as you look at global procurement in the areas that you work in?

7 key differences: strategic sourcing vs traditional purchasing

 

DrMuddassin.jpgProcuring materials with the intention of production, sales and service fulfilment is indispensable for every single business. However, the approaches, strategies and implementations to this differ immensely. Muddassir Ahmed, Divisional Supply Chain Manager at Eaton, discusses the difference between Strategic Sourcing vs. Purchasing.

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.

The low-hanging fruit has been picked. Now what?

 

JonathanHughes.jpgKraljic helped us pick the low hanging fruit, but the model is unlikely to drive the next wave of value, says Jonathan Hughes, Strategic Sourcing & Supply Chain Management Practice Leader at Vantage Partners, in this month's SmartProcurement.

Strategic sourcing rests largely upon a set of concepts and principles laid out by Peter Kraljic in his classic Harvard Business Review article "Purchasing must become supply management”, which was published in September 1983.

What makes SA such a popular outsourced destination?

 

lerato.jpgUnder increasing pressures to cut costs and achieve efficiencies in the current global macroeconomic situation, organisations look for destinations that are not only cost-effective, but can also provide quality services especially in terms of high-end processes. In this regard, South Africa has, to a large extent, been able to establish its offshoring mettle; a number of European, US and Australian companies have started offshoring complex processes to South Africa.

According to current estimates from Business Process Enabling South Africa (BPESA) - the BPO industry association in South Africa, the South African BPM sector employs 225 000 people and contributes more than R50-billion to the national annual GDP. The country accounts for 1% of the global business process and information technology outsourcing market.

How has South Africa established itself as the next emerging offshoring hub?

Lerato Sithole, Director of Supply Chain Management: Business-Process-as-a-Service for Deloitte, discusses the factors that are making South Africa a popular offshoring destination, in this month’s SmartProcurement.

SA's first SMME stock exchange

 

smmes.jpgSouth Africa will in October open its first stock exchange devoted to assisting small-business operators. The exchanges will be set up in Gauteng’s Johannesburg and Pretoria, focusing on residential townships and serving mostly black South Africans, reported iol Business News in September.

Residents will be able to trade shares in local businesses, providing an alternative to the 129-year-old Johannesburg Stock Exchange. The “SMME share” exchanges will operate under less stringent listing rules and lower costs, under plans announced by Gauteng Premier David Makhura.

Brexit - 28%of UK retailers considering sourcing from different countries

 

Brexit_.jpgAlmost a third of UK retailers are considering changing suppliers and 28% are thinking about sourcing from different countries following Brexit, according to a report.

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Sourcing

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Supply Chain Planner

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Supply Chain Planner

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Supply Chain Planner

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Supply Chain Planner

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Demand Planner.

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Logistics Specialist

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