Low Cost Sourcing

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.

6 Brexit implications for procurement


brexit.pngThe U.K.’s decision to leave the E.U. roiled markets, pummeling the pound and sending commodities linked to economic growth into a slump. As the dust clears and organisations begin to consider the long, uncertain road ahead, what are the top six implications for procurement and supply chain organisations?

A change is afoot in low-cost sourcing dynamics

Emerging markets are no longer type-cast as low-cost sourcing


KevinOMarah.jpgSCM World’s chief content officer, Kevin O’Marah, recently released his 'Top 10 Supply Chain Facts of 2014'.

Noteworthy was O'Marah's fact number five: low cost countries are no longer mere sourcing prospects - they are increasingly sought-after trading partners.

In 5 Days 2000 Procurement Professionals will meet to network, learn and do business!


LoyioGola.jpgWith only a few days to go, 3000 attendees have confirmed – Smart Procurement World, Africa’s largest supply chain indaba, kicks off on Tuesday, 9 September.

More than 110 speakers will share their procurement and supply chain insights with delegates in 6 different conference streams.

Hear from supply chain heads from Absa, Coca-Cola, Anglo American Platinum, Sasol and Transnet. Technology enablers from SAP and Oracle will inform the technology panel discussion.

Declining SMME index indicates narrowing entrepreneurial supply base


Closed.jpgThe Absa SMME index declined during Q1 2014, with a total quarterly decrease of 2.2% and a yearly decrease of 3.8%. The index declined to a two-year low in Q4 2013 (from 95.6 to 93.4).

Although South Africa has not yet entered a recession, the overall index clearly reflects slower growth over the last few years.

An outsourcing decision? Turn to economic theory

Isak Marais.jpgTransaction cost economics provides further insight into the total cost of a commodity and offers a guiding hand to any organisation struggling with a decision to outsource, Isak Marais, MD of Total Safety Solution provider Bramhope, tells SmartProcurement.

Warehousing in China - implementing a strategy

Chinese economy.jpgThis month SmartProcurement publishes the third article in a series considering China’s warehousing options, as presented in a report by C.H. Robinson Worldwide Considering China’s Warehousing Options. This month considers the key actions in implementing a warehousing solution in the world’s second largest economy.

Warehousing in China? Challenges to consider

China warehousing.pngThis month SmartProcurement publishes the second article in a series considering China’s warehousing options, as presented in a report by C.H. Robinson Worldwide. This month considers the challenges of warehousing in the world’s second largest economy.

Why warehouse in China? Exploring the benefits

China Business.jpgChina’s business relationship with Africa and South Africa is strengthening with every passing day. But while South African business enjoys the prospects of investment from the east, it may have overlooked some reciprocal investments that can be made in the world’s newly second largest economy.

This month’s SmartProcurement considers the benefits of China’s warehousing options, as presented in a report by C.H. Robinson Worldwide.

Procurement function one of most important drivers of future business success

Procurement business success.jpgThe procurement function has a significant role to play in an organisation’s future business success in the global market, far beyond its past role of simple order processing, said Gerd Kerkhoff, CEO of Kerkhoff Consulting, tells SmartProcurement.

PPE procurement: understanding its full TCO

Isak Marais.jpgPersonal Protective Equipment (PPE) is a subcomponent of the maintenance, repair and operational (MRO) expenditure of any large organisation. MRO expenditure is typically about 8% of large organisations’ total procurement expenditure. PPE represents 1% of total procurement expenditure, and can have more detrimental effects on an organisation than some of the other MRO sub-categories, Isak Marais, MD of specialist PPE consultancy, Bramhope, tells SmartProcurement.

This article is a follow-up to the article entitled ‘25% Saving on PPE Procurement’ published in SmartProcurement in October.

Inclusive supply chains support poverty reduction

Benjamin Mkapa.jpgProcurement and Supply Chain Management have a role to play in a recently launched initiative for holistic poverty reduction.

“Procurement that is ethical and value-based, that incorporates a community into its entire value chain” has a place in the Business for Development (B4D) Pathfinder Initiative, said Benjamin Mkapa, former Tanzanian President, at the initiative’s launch last month, attended by SmartProcurement.

Green procurement: changing the way we think and live

Nedbank friendly.jpgIt’s an exhilarating time. The environmental revolution is here and companies all over the world are coming up with extraordinary products and ideas that will change the way we think and live, Howard Stephens, CPO at Nedbank, tells SmartProcurement.

New Trend in Sourcing PPE Leads to Savings in Excess of 25%

safety_equipment.jpgA new trend in sourcing Personal Protective Equipment (PPE) offers savings in excess of 25%, Isak Marais, MD of specialist PPE consultancy, Bramhope, tells SmartProcurement.

Overcoming business barriers with China and gaining savings

China.jpgOne of the key strategies in Strategic Cost Management is the option of sourcing your 'direct' or even 'indirect' commodities from Low Cost Countries (LCC’s). This would be done due to various factors, but primarily because LCC’s are sometimes in substantially more price competitive positions than organisations at home. Several countries are now classified as an LCC, but by far the most well-known and attractive, is China.

Report back on SmartSourcing Conference 2008

SmartSourcing08.pngSmartProcurement hosted its 2nd annual SmartSourcing Conference on the 7th and 8th of October 2008 at the Irene Country Lodge in Centurion, Pretoria. This two-day event, sponsored by Purchasing Index, Tech-Pro Personnel, Commerce Edge Procurement Training, Volition, IPSA, BEESA Boxsmart and EES-Siyakha, attracted more than 100 local and international delegates from all corners of Procurement and Supply Chain Management (SCM) in both the private and public sectors.

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