Preferential Procurement

Influence of procurement departments on marketers

 

JohannaMcDowell.jpgAgencies working – or hoping to work – on major corporate accounts in the advertising, marketing and communications industry can no longer ignore or misunderstand procurement departments and their importance in winning both government and corporate clients.

Johanna McDowell, Independent Agency Search & Selection Company (IAS) managing director, warns that the B-BBEE Amended Codes of Good Practice released by the Minister of Trade and Industry in mid 2016 are designed to ensure that procurement is taken seriously by companies that intend to survive, in this month’s SmartProcurement.

Gauteng uplifting SMMEs through procurement

 

MEC_BarbaraCreecy_SPW.jpgRecent studies by Stats SA indicate that the face of poverty in South Africa remains black, female and that of children below the age of 17. Furthermore, more than one in every two SA citizens can be officially classified as poor, said Gauteng Finance MEC Barbara Creecy at the Smart Procurement World conference in Johannesburg.

“[Stats SA’s] Poverty Trends Report shows that by 2015, approximately 33% of Gauteng’s citizens were living in poverty. Although this is lower than most of the country, it is not a cause for celebration. One in three Gautengers go to bed without a meal. The situation was further worsened by the province losing 146 000 jobs during the last financial quarter,” said MEC Creecy.

The most direct and effective route to address these socio-economic challenges is a programme of transformation, modernisation and re-industrialisation. Gauteng’s provincial government is currently implementing such a programme in partnership with the private sector, organised labour and civil society, said MEC Creecy.

Set suppliers up for success and mitigate preferential procurement risks

 

Even if organisations are not doing business with organs of state, they may well form part of the supply chain of organisations to which the PPPFA directly applies. Therefore, they need to be aware of its scope and provisions.

Corporate businesses are actively seeking and supporting black-owned and black woman-owned Exempted Micro Enterprises (EMEs) and Qualifying Small Enterprises (QSEs) as suppliers to meet the stringent Preferential Procurement Policy Framework Act (PPPFA) regulations.

If successfully implemented, this approach could stimulate the desired growth and economic transformation as the B-BBEE Act intended from the start, by providing greater opportunities for small, medium and micro enterprises (SMMEs), particularly those owned by historically disadvantaged South Africans (HDSAs).

“However, while this is positive, merely complying with the PPPFA is not going to guarantee the success of SMMEs: there are factors outside the control of regulations and policies that need out-of-the-box solution,” Terence Gregory, CEO of Ecsponent Limited, told SmartProcurement.

Supplier transformation initiative in engineering and manufacturing to be introduced

 

manufacturing_engineering_support.jpgA transformation initiative for small businesses in engineering and manufacturing, the Empowered Engineering and Manufacturing Initiative (EEMI), will be launched in September.

The initiative is a collaboration between Smart Procurement World, the Absa Enterprise and Supplier Development Expo and the Steel and Engineering Industries Federation of Southern Africa (SEIFSA).

The initiative is positioned as a platform for industry players to share opportunities and challenges for small and medium empowered organisations, and drive enterprise and supplier development (ESD) partnerships (funding, training, mentoring and support) and other important focus areas in this sector.

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.

Sustainable procurement - start somewhere, it's better than not starting at all...

 

LorraineJenks.jpgResponsible, sustainable, green procurement means selecting products and services that have the least negative impact on the environment as well as the highest positive impact on communities and people. Profit and growth need not be compromised; in many instances it is myth that going green costs more, says Lorraine Jenks, advocate for green procurement in this month’s SmartProcurement.

Procurement jobs under threat from robots


Thumbnail image for robotblog.jpgBut workplace skills and training can alleviate the threat and at the same time earn you a grant payback and BEE points


Last year the Financial Mail reported that “two-thirds of jobs in South Africa (SA) could be lost to robots”. It is a concerning claim in a country facing economic woes, ever-looming downgrades, company closures and retrenchments.

It should be sufficient reason for procurement professionals to develop their skills and corporate SA to conducting training within their organisations and among their suppliers. This will help make companies more sustainable and impact positively on the local economy.

eProcurement is actually about people

 

Thumbnail image for Pumezo1.jpgThe Council of the European Union (EU) placed a renewed focus on public e-Procurement when it adopted directives for the reform of public procurement in February 2014.

Globally, governments have been pursuing initiatives to affect good governance and the “smart expenditure” of limited funds. They have pursued the implementation of a more effective procurement system and, in many cases, an electronic procurement system.

However, one can become so enamoured of the technology that one forgets what it is all about: it is about people, says Pumezo Gulwa, Director of the eCommerce Centre in the Office of the Chief Procurement Office, sharing one of the lessons National Treasury learned in implementing eProcurement.

Miss South Africa opens ED Expo at Smart Procurement World 2016


MissSA_small.jpg
From left to right: SmartProcurement's Debbie Tagg, Miss SA Ntandoyenkosi Kunene, Absa ED's Thabo Makama

Delegates, SMMEs and visitors were in for a surprise when the current Miss South Africa Ntandoyenkosi Kunene cut the ribbon and formally opened the ED Expo at the end of the conference’s first day.

The second session of the second day at the conference saw a panel discussion about practical ways that you can show to tangible value to the business from a procurement perspective.

ZUMA - Major BEE procurement shake-up

 

JacobZuma.jpgThe government’s procurement policy will be overhauled in a bid to support black and small businesses, said President Jacob Zuma.

”The buying power of the state is a powerful economic tool. It can and must be used to advance black economic empowerment, ” said Zuma, speaking at a Black Business Council dinner in September.

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.

10th Smart Procurement World Indaba underway

 

SPW_GP2016.jpgAs Smart Procurement World marks its 10th anniversary, the Gauteng conference underway at Gallagher Convention Centre has drawn on its opening morning more than 1 000 delegates, speakers and exhibitors.

The conference kicked off with some entertainment from the famous puppet comedian, Chester Missing highlighting side-splitting commentary on South African current affairs.

Join us on tomorrow FREE to meet all the SMME suppliers and network with verified, black-owned businesses.

Public Preferential Procurement regulations being revised

 

schalkhuman.jpgThe Treasury is rethinking the draft preferential procurement regulations it published in June, and there is a possibility the revised version could claw back some of the more generous provisions for enhanced black economic empowerment.

“The latest revision of the regulations is expected to be submitted to Finance Minister Pravin Gordhan in September and could be ready for promulgation in October” said Schalk Human, Acting Chief Procurement Officer, National Treasury.

Integrating procurement systems is required to achieve real economic transformation

 

SizaMthethwa.jpgDevelopments within government such as the creation of the ministry of economic development and, more recently, the ministry of SMEs indicate that the public procurement system also needs to evolve to remain a relevant and proactive tool to drive sustainable economic development, said Adv. Siza Mthethwa, General Manager: KZN Supply Chain Management, KZN Provincial Government.

Addressing procurement & supply chain officials at the KZN Smart Procurement conference, Mthethwa said the public sector needs to change the mind set of procurement officials and how procurement is done.

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.

Too many suppliers, so little time...

 

Thumbnail image for challenges.pngDoes this sound like you or one of your colleagues?

“The problem is that there are so many suppliers, compounded by many procurement professionals being spread thin. Often, initially procurement has less specialist knowledge about a market than do their stakeholders. The consequence is procurement only being engaged late in the process, then spending their time completing RFIs, RFPs, negotiating and contracting (all processes) – ostensibly playing draw level on the knowledge held by your stakeholders. Procurement then has to move onto the next supplier or category, and is not able to stay abreast of the market.”

It probably is you, not because you don’t know what you’re doing, but because it seems to be a universally encountered challenge in procurement.


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