Supplier Partnerships

How can procurement prepare SMEs to engage with corporates?

 

ElmarieGoosen-HS.jpg“They won’t even talk to me, now” David said with a sigh, and to punctuate his mood, spread his hands on the desk in front of him in resignation.

David is a small supplier that was selected to participate in a corporate enterprise supplier development (ESD) programme. Following the completion of the 12-month contract, he was replaced by a subsequent beneficiary of the programme. David has been trying to secure a further contract with the organisation (and with other organisations), but has no idea how to engage with his prospective clients, subsequent to the ESD initiative.

It is a situation familiar to Elmarie Goosen, owner and founder of On Purpose, an organisation that provides training to SMEs to complement supplier development programmes – to prepare SMEs to engage with corporate procurement. She unpacks what procurement can do to help SMEs, in this month’s 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.

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.

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.

10 things you should consider before writing any supply chain policy

 

Musah.jpgWhen purchasing materials the same routines are used on each occasion, even if each and every one of these purchases is unique. So why do we need supply chain policies or procedures? asks Muddassir Ahmed, Divisional Supply Chain Manager at Eaton.

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.

Drones delivering blood for transfusions: Supply Chain Innovation

 

drones_.jpgA drone service delivering blood for transfusions has been launched in Rwanda.

The drones are expected to make between 50 and 150 life-saving deliveries each day to far-flung and inaccessible clinics across the western half of the country. Excessive blood loss during childbirth is the leading cause of death in pregnant women in Rwanda.

Zipline, the company behind the technology, said it could complete a delivery in around 30 minutes after receiving an order via a call or text message.

The low-hanging fruit has been picked. Now what?

 

JonathanHughes.jpgKraljic helped us pick the low hanging fruit, but the model is unlikely to drive the next wave of value, says Jonathan Hughes, Strategic Sourcing & Supply Chain Management Practice Leader at Vantage Partners, in this month's SmartProcurement.

Strategic sourcing rests largely upon a set of concepts and principles laid out by Peter Kraljic in his classic Harvard Business Review article "Purchasing must become supply management”, which was published in September 1983.

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.

eThekwini municipality linking procurement and SMMEs

 

Fawzia.jpgHosting Smart Procurement World KwaZulu-Natal gave the city of eThekwini’s SMMEs the chance to network with big business procurement from the corporate and public sectors.

“Involving Procurement in assisting SMMEs to grow and creating new businesses generates jobs for citizens,” eThekwini Municipality Cllr Fawzia Peer, Chair: Finance & Procurement, told SmartProcurement.

“[Linking Procurement with small businesses] helps the municipality, in terms of poverty alleviation, and the State, in terms of less welfare support. Ultimately, it improves the quality of life of our people,” said Cllr Peer.

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.

5 rules for procurement to follow in business relationships

 

KateVitasek_540x800.JPGModern procurement is about reaching out, collaborating and working together to allow innovation. Both the goverment and the business sectors, even suppliers, can achieve better results if they work together to drive and improve procurement process in their organisations.


Speaking at the 3rd Smart Procurement World Conference Western Cape, Tennesse University Professor in Supply Chain Management, Kate Vitasek addressed delegates. Her presentation emphasised stabilising economies and driving business growth strategies in South Africa.

Purchasing and supplier selection fails to support SMME growth in Africa

 

DouglasBoateng_515x800.JPGA recent study has found that although procurement is globally recognised as playing an essential role in local and regional-wide industrialisation, current purchasing and supplier selection practices do little to support SMME growth on the continent.


The study found that while over 55% of African-government expenditure went towards purchasing and procurement of goods and services, less than 10% of that expenditure was directed towards local suppliers.


In addition, over 80% of the government organisations participating in the study were unaware of the true origin of the goods and services that they were spending their money on, which indicates a clear lack of focus on long-term SMME and enterprise development thinking, writes Professor Douglas Boateng, Chair of the Advisory Board of the Chartered Institute of Procurement and Supply-Africa, in this month’s SmartProcurement.

Africa turns to small business sourcing, enterprise and supplier development

 

AfricaDevelopment.jpgOver the years, Africa has embraced newer models of business to create more prospects for economic growth. Driven by supplier diversification, economic transfer and building a more dynamic local content procurement approach, enterprise and supplier development (E&SD) is becoming a global action to inspire economies and create jobs. Key to this achievement is the role played by procurement and policy makers in driving local sourcing and developing small businesses into real industry players.

Can drones transform logistics in Africa?

 

drone.jpgJust as mobiles leapfrogged landlines across Africa, so cutting-edge drones could outpace roads on a continent where only 16 per cent of thoroughfares are paved, but the population is set to double to 2.2-billion by 2050.


Driving this evolution is a Rwandan cargo drones project that is a collaboration between Afrotech and London architects Foster + Partners. Afrotech is a future Africa initiative, whose objective is to help pioneer advanced technologies in Africa at massive scale.


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