e-Procurement

How will the National e-Procurement portal affect set-asides for small business?

Proc.jpg
While national treasury is pushing ahead with an e-procurement portal, questions are being raised about what has become of the 30% of procurement budgets set aside for small, medium and micro enterprises (SMMEs) that President Jacob Zuma announced in the 2015 state of the nation address.


Last month, finance minister Pravin Gordhan said in his budget speech that from April 1 all companies wishing to do business with national and provincial government their entities must be registered on national treasury’s central supplier database. Municipalities will join on July 1.

Should Government allow credit cards for purchasing?

 

card.jpgGovernment procurement and finance functions are faced with the need to be efficient, while simultaneously reducing fraud and increasing control, transparency and auditability for all expenditure. It is a tall order and at the same time these organisations are expected to constantly improve the services they provide to the communities they serve, says Vanitha Govender, Vice President, Government Solutions and Services, MasterCard Southern Africa, in this month's SmartProcurement.

Procurement department change management - are you doing it the right way?

 

StevenFreemantle2.JPGThe old adage “the only constant is change” may never have been truer than in today’s economic uncertainty. Amid constant calls to reduce operating costs, purchasing departments will be challenged to do things differently – centralise, decentralise, rationalise, even outsource. If your organisation has SAP (or any ERP system for that matter), these kinds of changes can more easily be managed by exploiting the functionality you already own to measure the adoption of any significant change in the way buying functions. In this month’s SmartProcurement, Steven Freemantle, of SweetThorn Thought Leadership, discusses how to use your SAP system to facilitate change.

R3 600 - the cost of a purchase order in government

 

NhlanhlaNene.jpgThe central procurement office (CPO) created by Treasury to leverage volumes in the government has already led to savings amounting to billions of rand, says Finance Minister Nhlanhla Nene.


"The cost of a purchase order will be reduced from approximately R3 600… to between R500 and R750 using the new technology platforms,” said Nene, in a written reply to a parliamentary question by Democratic Alliance MP Malcolm Figg.

e-Procurement powers supply of Flowers through local suppliers

 

nick2-web.png An e-Procurement platform that connects sellers of flowers with purchasers through a number of unique and interesting features and capabilities has been launched by SA Florist. "World-class technology aside; at the core of the business is the relentless pursuit of community upliftment, championing the underdog and providing artisans with equal access to customers that they would never previously have thought possible,  Nicholas Wallander, Managing Director SA Florist, told SmartProcurementI.

 

Streamlining P-Card purchases with new technologies - Part 3

 

AnitaCarolus.jpgIn previous issues of ' SmartProcurement, Anita Carolus-Opperman, Nedbank Corporate Card National Sales Manager, highlighted the new trend of using online marketplaces and e-catalogues, as well as the critical components that a company needs to consider to ensure it derives value from the online marketplace.In this month’s issue Opperman discusses how to choose an online marketplace for your company:

 

White Paper: 4 Key benefits for Procurement Departments using Corporate T&E Cards

 

images.jpgAs procurement function has to deal with many small transactions, corporate cards provide distinct benefits for at least five different functions within a procurement department: treasury, accounts payable, financial systems, audit/compliance and budgeting/planning, explains Virginia Miller, Business Leader, CPS Product Development of MasterCard in this month's SmartProcurement. 

Streamlining P-Card purchases with new technologies - Part 2

 

p-card_header2-645x300.jpgOnline marketplaces are being used more frequently as part of the procurement function in companies and are a perfect example of how technology is not only enhancing, but also streamlining the way business is done globally.


In last month's SmartProcurement, Anita Carolus-Opperman, Nedbank Corporate Card National Sales Manager, highlighted the new trend of using online marketplaces and e catalogues, and how this use further streamlines the procure-to-pay (P2P) process when implemented with a P Card.

Leveraging the efficiencies of payment cards to manage travel

 

Corporate-Cards-Not-Just-For-Travel.jpgTravel and Entertainment (T&E) is a critical expenditure category for nearly all organisations. Typically, it is the second largest controllable expense after salaries and benefits. In all cases, however, it is no longer regarded as best practice but essential practice for a successful T&E programme to deploy a corporate card, advises Master Card in this month's SmartProcurement.

Supplier delivery reliability inside SAP: Too much or too little, too early or too late?

 

StevenFreemantle2.JPGThere are many performance measures that can be considered when managing the performance of your buyers: cost saving, cost avoidance, quality, contract compliance, off-contract expenditure, management of procurement cycle times, procurement ROI, and many more. Those of you running SAP may have many sets of complex measures that tie into supplier performance management. These measures are necessary, but in the interests of simplicity there are two straightforward measures that are a good departure point for managing buyer’s and supplier’s day-to-day operational performance: on-time and in-full. In this month’s SmartProcurement, Steven Freemantle of SweetThorn Thought Leadership asks: “do you get exactly what you want when you need it?”

7 SAP procurement automation tips to maintain plant uptime

 

StevenFreemantle2.JPGWith companies constantly striving to maximise output and reduce operational costs, the days of parts and materials planners having their own personal buyer are long gone. Centralised procurement is quite the norm. Often in these environments one hears that “when the buyer sat next to me we never had the issues around material and parts availability that we now have since procurement was centralised. I don’t even know who my buyer is, or where they sit, and most of them don’t even know what it is I want them to buy.”


However, if you are using SAP, it should provide the sense that the buyer is sitting in the office next door, writes Steven Freemantle of SweetThorn Thought Leadership, in this month’s SmartProcurement.

5 procurement practices inside SAP to get ahead and stay ahead

 

StevenFreemantle.jpgTime and again Steven Freemantle encounters procurement managers who feel that their SAP systems hinder, rather than aid, the satisfaction of their organisations’ purchasing needs. This definitely need not be the case. There is an urgent requisite for this crucial supply chain function to go back-to-basics. Instead of employing more people or adding new functionality to their SAP suite, procurement managers need to learn how to exploit the standard SAP functionality their companies bought when SAP was originally implemented.


In this month’s SmartProcurement, Freemantle, of SweetThorn Thought Leadership, discusses the five leading practices that procurement managers should employ to make use of SAP toolsets that have been around since at least the 1990s.

5 rules of deploying a successful procurement system

 

Value.jpgAccording to Gartner, North American companies recently spent $1.4-billion (R16.8-billion) per annum on sourcing and procurement applications. For their investment companies seek two fundamental benefits: lowering costs for the goods and services they purchase; and making their employees more productive.


However, are these companies receiving their money’s worth?


A survey conducted by the Topline Strategy Group (TSG) suggests that while some companies are receiving their money’s worth, many others are getting nothing for their investment.

Public sector e-tender portal and central supplier database set to go live

 

SupplierDatabase.pngGovernment is introducing an electronic tender portal for public sector contracts to improve the supply chain.


President Jacob Zuma said the portal system would be phased in from April, however, it this has been pushed to May.


Government is taking action to improve the performance of its supply chain management system to “prevent fruitless and futile expenditure as well as corruption”.


A centralised supplier database would also be introduced this month. It is a central list of approved suppliers that have been vetted for cost and quality, managed by the chief procurement officer, said Treasury. Once it is fully functional, it will replace around 600 supplier databases that currently exist.

Top 4 ways procurement can leverage business networks

 

AlexSaric.jpgIn his frequent conversations with procurement professionals, it’s become clear to Alex Saric (Vice President of Business Networks Marketing at SAP) that the importance of increasing collaboration with suppliers is well recognised, but, when we start to discuss what that means in practice there is far less clarity.


For example, few seem to understand how to leverage business networks, a key enabler of such collaboration, to drive greater value. After all, in today’s Networked Economy, we are more connected and dependent on our trading partners than ever before.


Based on his experience, Saric has identified top ways that procurement professionals should leverage business networks.

3 supply chain lessons from the mismanagement of the EBOLA disaster

 

EbolaSupplyChain.pngThe current outbreak of Ebola is the largest and most complex since its discovery in 1976, exceeding the sum of all previously identified cases.


In October 2014, The World Health Organisation announced that there could be 10 000 new cases of Ebola per week and the current outbreak’s mortality rate had increased to 70%.


What was considered West African problem became a global concern with cases being treated in Europe and America, some of them resulting in fatalities. While there is a concerted effort to contain the outbreak, the international president of Médecins Sans Frontières, an NGO working in the affected regions, said earlier that “six months into the worst Ebola epidemic in history, the world is losing the battle to contain it.”


The question that businesses need to ask themselves is what could they learn from this experience, says Suresh Somasundaram, Director of Business Network Marketing at SAP, in this month’s SmartProcurement.


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