Enterprise Development

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.

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%)”.

Buy local or face audit findings!

 

RobDavies_ProudlySA.jpgUnder the World Trade Organisation’s agreement on Trade-Related Investment Measures, The South African government cannot prescribe to the business sector that they must follow localisation (75% local content in purchases) in the same way it prescribes to public entities.

“We don’t have that ability, and are challenged internationally [if the topic of localisation is broached with international organisations],” said Minister of Trade and Industry, Rob Davies.

However, some business organisations have embraced the spirit under which the Economic Development Department (EDD) negotiated the local content designations, to drive economic development in the country.

Minister Davies shared some of these corporate-level local procurement stories at Proudly SA’s Buy Local Summit, in early April.

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.

What should CFOs expect from CPOs?

 

ProcProcurement.jpgThe clue to the answer may appear to be contained in the job title. The narrow, traditional view of a chief procurement officer (CPO) is that they organise the buying of stuff – even if it is not stuff at all, but services – in a timely, efficient, and cost effective manner. The problem with this view is that it is wrong.

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.

Tips for influencing your EXCO's ESD strategies

 

Amina.jpgAs an executive in transformation or enterprise and supplier development (ESD), you may have been, or may currently be, in the position of not knowing what to ask for when approaching your executive committee (Exco) or decision-making entity to secure adequate budget for ESD.

While Exco generally understands that there is a need to expend their required percentage of NPAT to achieve compliance, there is little guidance on how this budget should be allocated to yield not only compliance benefits, but financial efficiency and community impact. The Exco, usually dominated by CEO and CFO profiles, often look for the most cost effective solution and are driven by compliance – not making the connection of how this can potentially play a role in driving the organisation’s business objectives, writes Amina Patterson, Head of Business Development at Edge Growth, in this month’s SmartProcurement.

What to do in your first 90 days leading a procurement division

 

Sanet.jpgChanging jobs or even organisations can be daunting. Managing the change is a strategic process requiring a strong sense of visionary leadership, a clear picture of the objective and reasons and a strong process of communication and involvement.

Sanet Shepperson, a Procurement Executive at Cell C, provides a ‘play book’ on how to walk in, take the reins and lead a procurement department.

9 tips to keep your procurement career on track


HelpfulTips.jpg

Many people think about their career goals only when they start looking for a new job, or at their annual appraisal, but ongoing career planning and management is vital for any procurement professional.

Nicky Taberner, Director at Hays Procurement & Supply Chain, gives her top tips for keeping your procurement career on track.

Do current ESD practices work?


CHRISTI.jpg

The Enterprise and Supplier Development (ESD) element of the revised BBBEE Codes has made it clear that providing only financial and non-financial support to small suppliers and SMMEs is no longer sufficient.

Considering the imperative that the ESD element places on strategically engaging with suppliers, Christa Bonnet, founding member and Chief Executive Officer (CEO) of The Difference Makers, has found a worrying level of ‘missing’ knowledge among organisations and BEE specialists alike.

SA must partner with China to drive ESD through industry

 

Publiclecture1.jpgChina is an economic partner that can drive enterprise and supplier development (ESD) in South Africa and the rest of the continent.

A significant export, trade and development partner to Africa, China brings, particularly to South Africa, a host of industrial innovations, which if adapted for the local environment can help with various productivity and performance improvements, plus competitive advantage in the public and business sectors, said Prof Douglas Boateng, CEO of PanAvest International & Partners, at a public lecture in October.

Creating supply chain value, not compliance, drives ESD success

 

Wybrand2.jpgThe developmental nature of ‘transformation’ becomes a complex process when we consider the overwhelming commitment within supply chains to receiving high-level quality, consistent delivery and cost effectiveness.

Such a commitment leads organisations to carefully evaluate the risks versus the benefits when implementing their ESD strategies. However, only from the vantage of a holistic overview will organisations realise that it is the ultimate goal of participation around value creation, and not compliance, that will empower ESD initiatives and emerging suppliers alike, writes Wybrand Ganzevoort, Managing Director of Collection Value Creations.

Tshwane opens tender process to the public

 

SollyM.jpgThe city of Tshwane has opened its tender processes to the public in a bid to make them more transparent, said mayor Solly Msimanga in September.

“Corruption in tenders happens behind closed doors when politicians sit and make multi-million rand decisions. Now I have opened the doors to the public, and I encourage the public to scrutinise how we spend,” he added.

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.

#womeninsupplychain @ Smart Procurement World awards

 

Thumbnail image for WomenSP2.jpgThe Smart Procurement World conference included many powerful and strategic women in supply chain and procurement who shared thought-leading information and knowledge.

“Women in supply chain and procurement should possess ethics, integrity, respect and strive for the best in the boardroom”, said Lerato Sithole, Consulting Process Solutions, Deloitte BPaaS.

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.


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