Benchmarking

Travel benchmarks point to behaviour massively driving costs in 2017

 

AlanLow_2013.jpgThe domestic corporate travel market is set to undergo many subtle changes in 2017, says Alan Low of category benchmarking company Pi. With a forecast of stagnant economic growth, downgrades and political uncertainty, organisations will be looking for more savings and greater efficiency.

The interplay between travellers, travel managers and service providers, such as Travel Management Companies (TMCs) will become vital to managing traveller behaviour and travel processes.

World Bank assesses public procurement systems in 77 economies

 

Thumbnail image for Thumbnail image for Tania.jpgGiven its size, the public procurement market has the potential to improve public sector performance, promote national competitiveness and drive domestic economic growth. However, with such vast sums and interests in jeopardy, public procurement is the government activity most open to corruption and fraud. It provides numerous occasions for all involved to divert public funds for private gain.

To understand the size and frequency of these ‘diversions of public funds’, the World Bank’s Benchmarking Public Procurement report analyses 77 economies on issues relating to value and the promotion of transparency, accountability and efficiency in public procurement.

Tania Ghossein, Senior Private Sector Development Specialist and Programme Co-ordinator of the Benchmarking Public Procurement project, World Bank Group, discusses the significance of the report in this month's SmartProcurement.

Forget cost management - think 'value management'

 

value_management.jpgIn tough economic times, management may take a ruthless approach to various areas of the business where they perceive costs as being too high. For example, they immediately cut the marketing budget – when in fact marketing may be more critical than ever before. Or they trim down expenditure on IT systems, when investing in more streamlined IT processes can quickly turn into a cost saving.

Typically, costs within a company are being divided into pure operational costs - but these, in themselves, have massive indirect costs (head office expenses, FICA [for banks], IT, etc.). But in taking this approach, businesses usually have little to no idea of what the true cost to provide their service/product is.

Stationery - Managing and optimising a complex category

 

AlanLow_2013.jpg“Recent benchmark reports have shown price variances for specific items of more than 60% and on A4 paper in excess of 40%.”


Alan Low has seen both sides of the stationery supply world: from benchmarking stationery supply arrangements for many of South Africa’s top organisations, to being the Managing Director of a UK stationery company in 1980s.


“From a supplier perspective, the cost of fulfilment (the procure-to-pay process for the supplier) is inordinately large when compared with the average value of a stationery order. When you factor in service requirements such as to-desk delivery and no minimum order value, making a profit becomes even harder,” says Low, of Purchasing Index (PI) in this month’s SmartProcurement.

Using data analysis to facilitate achieving the DTI 2013 BEE Codes

 

The 2013 Department of Trade and Industry (DTI) Codes are complex and meeting them will be challenging. For management to make informed decisions and measure progress in achieving transformational goals at business-unit level there must be one version of the truth that is accurate and up-to-date.


The New Codes have raised the broad-based black economic empowerment (B-BBEE) bar for all larger South African organisations: most believe that if they had to conform to the Codes now their BBBEE level would drop at least 2 points for example from 4 to 6


And yet the codes come into force now.

Savings not always generated at the supplier. Look inside!

 

AlanLow_2013.jpgAlmost 20 years’ experience benchmarking goods and services has taught Alan Low, CEO of Purchasing Index (PI), that improving efficiencies and generating savings often has nothing to do with an arrangement with a supplier. He spoke to SmartProcurement about other avenues that lead to great savings.

Why your organisation should benchmark

 

PCindices_against_USDollar_Euro_indices.pngOrganisations seeking to become leaner and more efficient can’t manage what they don’t measure.


“Over the 15 years that I have been benchmarking SA organisations I have seen very little evidence that there is any direct relationship between how much organisations procure and the prices they pay. Rather, it is better-informed organisations that pay lower prices and receive better service from suppliers,” Alan Low of Benchmarking service provider Purchasing Index (PI) tells SmartProcurement.

Call to participate in a SA workspace management benchmark service

 

WorkspaceManagement.jpgMany organisations are seeking ways to fit more staff into less office space, while maintaining a conducive and more productive work environment. Disparate business unit requirements may also complicate central planning of the workspace – some divisions may require hot-desking and allow work-from-home, while others want all staff in the office permanently, working together or a mix of the two.

Buying Telecommunications? Avoid long-term agreements

 

Developments_telephony.jpgDramatic changes expected in the South African telephony market over the next few years mean buyers of telephony and IT services (fixed line and mobile) should avoid long-term agreements with their current service provider(s), keep on top of market offerings and understand the changing need of the businesses they serve, says Purchasing Index’s (PI) Alan Low in this month’s SmartProcurement.

Real-time BEE transformation analysis - turning data into action

 

TalentManagement.jpgBuilding an organisational scorecard showing B-BBEE achievements against the relevant codes is useful in itself. However, for most organisations this exercise is manual, takes a long time to complete and is retrospective.


What is required is a service that goes beyond a static scorecard to a fully integrated B-BBEE analysis service that tracks strategic BBBEE goals through their tactical requirements to delivery, turning data into action, Alan Low of Benchmarking organisation Purchasing Index (PI) tells SmartProcurement.

New tool helps SCM demonstrate its financial impact on the bottom line

 

FinancialImpact.jpgA performance assessment that helps supply chain management (SCM) organisations quantify their financial contributions to organisations was launched in January.


Return on Supply Management Assets Performance Check (ROSMAPC) assesses SCM’s value to an enterprise and helps SCM executives demonstrate the function’s financial impact on the bottom line.

Office overheads in the 21st Century - space management

 

HotDesking.jpg2014 has ushered in another year of angst for most organisations in South Africa. However, while cost containment remains high on many Exco’s agendas, the costs associated with staff continue to increase relative to the wage bill, says Alan Low of Purchasing Index (PI), in this month’s SmartProcurement.

Driving visibility within African supply chains

 

SupplyChainVisibility.jpgAs supply chain management becomes increasingly central to business strategy, so the need for visibility within the supply chain becomes paramount. Greater end-to-end visibility improves revenue and reduces costs, while allowing for better management of disruption, complexity, opposition and growing customer expectation, Tech-Pro tells SmartProcurement.

P-card transactions facilitate in-depth spend analysis

 

V_sa_Spend Analysis.jpgThe accuracy and relevancy of data in organisations is becoming more important. With more spend being moved onto cards, data on card transactions is quickly becoming a necessity, finds Anita Carolus, Nedbank Corporate Card National Sales Manager, in her interactions with clients.

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.

Failing to compare prices and services guarantees squandered expenditure

 

AlanLow_2013.jpgBy not benchmarking the prices and services you receive from suppliers and the way you use those goods and services removes valuable insight into what other organisations are achieving in the market and increases unknown risks, says Alan Low of Purchasing Index (PI), in this month’s SmartProcurement.

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