Service Outsourcing

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.

Market consolidation "key trend in procurement outsourcing"

 

MarketConsolidation.pngMarket consolidation and the inclusion of extra services will be among the most significant trends driving the global procurement outsourcing market, according to research.


Market research company Technavio analysed emerging trends to find the biggest factors that will influence the sector up to 2019.

4 risk management strategies to ensure supply chain continuity

 

JimMakuwa.jpgA prudent supply chain professional knows that each transaction is worth its value or the negative impact of it going wrong and has to be treated as such.


High-value transactions need scrutiny commensurate with the risk that the organisation may be exposed to if something goes wrong. In other instances the transaction value may be intrinsic, but the effect may be devastating and it is for these reasons that one has a backup plan.


“It boils down to being inquisitive. Considering that risk is prevalent in supply chains, ‘What if’ can help prevent a fatal judgement error,” says Jim Makuwa, a tutor for Commerce Edge Academy, in this month's SmartProcurement.

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.

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.

2014 Trends in South African logistics

 

Logistics.jpgThe CSIR’s 10th Annual State of Logistics Survey for South Africa¹, released in May 2014, highlights progress made and areas for improvement in South African logistics. The survey’s results mirror Tech-Pro’s experiences in this increasingly specialised area of supply chain management, Tech-Pro tells SmartProcurement.

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.

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.

Value for Money trumps low cost when assessing logistics partners

 

ValueVsCost.jpgResearch in the Courier and Express Parcel (CEP) industry shows that brands choosing a delivery partner consider reliability, efficiency and accuracy of data before cost. “You get what you pay for.”


South African businesses seeking CEP partners are familiar with this maxim, according to a benchmark research report prepared by independent research specialists TerraNova.

Multi Functional Devices - Why benchmark the procurement - running costs?

 

BenchmarkMFDs.jpgAlthough very basic when compared with the multi-functional devices (MFDs) sold today, many of the same sales techniques are still used to trap unwary photocopy machine procurers, says Alan Low of Purchasing Index (PI), who ran a London office equipment company in a past life.

Teach SMEs to spot the gap for growth opportunities

 

MarketGap.jpgGaps – or business opportunities – challenge what businesses offer the market and how they offer their goods or services. With more and more “me too” SMEs trying to find points of differentiation in various industries, incubators need to assist the entrepreneurs with which they partner to identify “real gaps” in the supply chains they want to enter in order to position themselves for success, says Shawn Theunissen, head of CSR at Growthpoint Properties and Property Point (Growthpoint Properties’ enterprise development programme), in this month’s SmartProcurement.

Do not confuse print management with print brokering

NotPrintBrokering.jpgConsidering that companies allocate an estimated three to five per cent of their total expenditure on printed materials, it is logical that print management solutions are implemented to streamline print procurement. However, there is still some misunderstanding as to what print management is, resulting in many companies not utilising it and hence not benefitting from this valuable procurement service, Christian Bell, head of Sales and Marketing at Point, tells SmartProcurement.

Help SMEs to move beyond marketing roadmaps and convert these into sales pipelines

 

AttractingCustomers.jpgSecuring space and loyalty in the hearts and minds of clients remains a formidable task for most small businesses. With rivalry in sectors intensifying, developing and maintaining positive client relationships is critical for SMEs to survive and, ultimately, thrive in the formal economy. However, considering that many entrepreneurs have not been formally exposed to marketing, it is critical that enterprise development programmes address this gap, providing them with practical tools and exposure, says Shawn Theunissen, head of CSR at Growthpoint Properties and Property Point (Growthpoint Properties’ enterprise development programme), in this month’s SmartProcurement.

Marketing materials procurement specialist to talk about cost savings next week

ChristianBell_May2013.jpg"All involved in procurement will benefit from meeting with us to talk cost savings, improved print and production quality and better use of resources,” head of sales and marketing at Point, Christian Bell, told SmartProcurement. "Readers should touch base with us at our stand at next week's Smart Procurement World."

Skills programme initiative brings hope to 10 000 youth

 

SisaNtshona2.jpgIn a bid to give hope to thousands of young people, Absa has partnered with the City of Tshwane (CoT) in a Youth Development Programme called “Tshepo 10 000”, Sisa Ntshona, Absa Head of Enterprise Development tells SmartProcurement.

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