Supplier Management

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.

BEE: look beyond regulation to be effective in supply chain

 

Parliament.jpgBlack Economic Empowerment (BEE) is one of the most highly regulated aspects of the South African business landscape today. The most recent changes to the regulations have both large corporate businesses and smaller businesses returning to the scorecard drawing board. Louis Coetzee - General Manager of the Ecsponent Development Fund (part of JSE-listed African financial services company Ecsponent Limited) - told SmartProcurement that this has contributed to inhibiting economic growth, and the stunting of competitiveness in the industry.

6 Steps to improve buyer-supplier relationships

 

Sinbl_Hawro_Yakoob.jpgIn supply chain literature, as well as in business environments, supplier relationship management (SRM) and buyer-supplier relationships have multiple definitions, shapes and extensions, owed to the fact that the determinants and perceptions of these fields have evolved over time. With increasing globalisation, and economic and political turmoil, stable and focused SRM is more important than ever.

Sinbl Hawro Yakoob, responsible for handling bottleneck products in the Critical Parts Management Department at Mercedes-Benz in Maastricht, the Netherlands, describes the benefits, key approaches and techniques that enhance buyer-supplier relationships, 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.

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.

Call for the creation of a supply chain management council

 

Create_SupplyChainManagementCouncil.jpgProfessor Marcus Ambe – professor of Supply Chain Management (and chairperson of the Supply Chain Management Research Group) in the department of Business Management at Unisa – posed critical questions, which set the scène for the roundtable discussion around the professionalisation of supply chain management. The discussion was held at Unisa on the 2nd of March 2017, and was organised by the Supply Chain Management Research Group in the College of Economics and Management Sciences (CEMS) at Unisa - in collaboration with the Chief Directorate Capacity Building, in the Office of the Accountant- General, National Treasury.

Supplier collaboration? You must be joking!

Mike_Robertson.jpgThere are numerous articles talking about the value that remains untapped within the supply chain, if only buyer and supplier could collaborate. But what does it mean to collaborate? wonders Mike Robertson, CEO of POD Procurement.

Failed supply chain policies led to Eskom's Tegeta payments - Corruption Watch

 

BenNgubane.pngEskom failed to follow its own supply chain policies, the PFMA and Section 217 of the Constitution when making pre-payments to the Gupta’s Tegeta exploration and resources to secure coal supply, said Corruption Watch in a statement.

“We are concerned about the nature and scale of procurement irregularities at Eskom,” said Corruption Watch’s executive director, David Lewis.

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.

Supplier development key to curbing Zimbabwe's ballooning import bill

 

GibsonSibanda.pngThe ballooning imports against a drop in exports have seen Zimbabwe faced with liquidity challenges. In as much as importation of finished products is adding towards the bill, a closer look shows that other production-related imports are high - and many of these do have local manufacturers. Supply chain professionals can do a great deal to help reduce the amount of money leaving Zimbabwe through importation of raw materials, packaging and other auxiliary materials by developing the country’s local suppliers, says Gibson Sibanda, Secretary of the CIPS Zimbabwe branch, in this month’s SmartProcurement.

Absa aims to raise more than a R1-billion to support SMEs

 

Thumbnail image for Thumbnail image for KeaobakaMahuma.jpgAbsa aims to raise more than a billion rand to support emerging small and medium enterprises (SMEs) in South Africa, and later across various markets where it has operations.

This is part of the bank’s ‘Shared Growth’ initiative announced earlier in July 2016, through which the bank aims to use its assets and resources to grow and develop the societies where it operates while growing its business.

According to KeaObaka Mahuma, Head of Enterprise and Supply Chain Development at Barclays Africa, the funding will be raised from a number of sources, including the bank’s own balance sheet. The fund will predominantly target existing SMEs linked to the supply chains of private and public sector corporates.

Port Elizabeth ED office signs supply agreements with Eastern Cape entities

 

Thumbnail image for KeaobakaMahuma.jpgAn Enterprise Development Centre (EDC) in Port Elizabeth has signed Memorandums of Understanding with Nelson Mandela Bay Municipality, Joe Gqabi Municipality, East London Industrial Development Zone and the George and Knysna municipalities to provide funding and business development support to SME suppliers that work with these entities.

Through the initiative, Absa, which has opened seven other EDCs around the country, aims to assist thousands of small and medium enterprises (SMEs) in the Eastern Cape, says KeaObaka Mahuma, Head of Enterprise and Supply Chain Development at Absa.

University students aim to clean up govt procurement

 

Kriterion.jpg

Four University of Johannesburg students, thinking that government's Central Supplier Database (CSD) is not the only answer to the problem of tender fraud, have designed a system that aims to curb tender corruption in the state’s procurement system.

Recognising tender fraud ias a real problem in African governments, the students, calling themselves “Kriterion”, developed the project with the South African tender process in mind.

Suppliers financing customers - responsible, sustainable?

 

BillMichels.jpgIn April Rio Tinto announced that it would reverse a decision to extend payment terms for suppliers. One of the world's biggest miners, it had planned to double its payment terms in a move that would have forced its suppliers to wait up to 90 days to be paid.

Rio Tinto is not alone in (wanting to) extend payment terms.

Extending terms is a great example of “leveraging suppliers” who, themselves, have invested in facilities, employees and inventories in the most corners of the globe just to support the customer.

But it’s not sustainable, says Bill Michels, CEO and founder of Aripart Consulting.


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