SmartProcurement.co.za - FREE on-line newsletter for purchasing and supply management professionals

Effective Enterprise development strategies for BBBEE Suppliers Half-Day Workshop

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Workshop Details:

Date: 2012 dates to be advised
Time: 08h00 for 08h30 - 12h30
Place: Centurion Estate Conference Centre
Cost: R1075.00 + VAT per delegate (meal and manual included)

TO REGISTER: Contact Erieka Santos @ 0861 334 326 or
e-mail: events@smartprocurement.co.za
_____________________________________________________________________

]]> Answers to the following 7 Enterprise Development questions are mandatory knowledge for procurement professionals to improve your organisation's bottom line and rapidly increase BBBEE points...

How will Effective Enterprise Development (ED) mean millions of Rands of cost reductions for your organisation?

Your company will be spending large on enterprise development initiatives in order to get more BBBEE points. The numbers, as you know, run into millions each year. Its possible to reduce expenditure by more than 50% by knowing about innovative initiatives that count as ED. As a sourcing professional you need this information to show lasting bottom line benefit in this Key BEE Category.

How to rapidly increase your ED in such a way that it provides your organisation with the most BBBEE points in the shortest space of time?

Leaders in ED utilise outsourced service providers to streamline ED programmes. They combine
resources with other companies to make the most of available funds.
Using these specialist organisations reduces the time required and, increases effective, measurable outcomes.

Which suppliers qualify as valid recipients of enterprise development benefits according to the BBBEE scorecard?.

There is no use in spending ED money with suppliers only to find out later that the supplier does not qualify and is rejected, and the company loses... Where to find suitably qualified suppliers becomes a challenge...

Which type of suppliers need to be targeted as ED recipients so that your company benefits the most, and why?

There are key parts of your organisation's supply base that needs to be targeted first to
provide the biggest impact for ED initiatives..

How can ED initiatives strategically re-align the supply base to improve competitive advantage

Been wanting to deal with sole suppliers in your market for a while now? ED opens up a whole world of new opportunities.

What does an ED Management process look like and what initiatives by your company will truly count as enterprise development?

There is an incredibly wide range of initiatives that can be classified as enterprise development.
Reduce your organisation's money that would've been paid out as a percentage of earnings.

What cost effective, ready made mechanisms are available to reduce the red tape involved with ED and make the most of your limited time?

SmartProcurement is hosting a Half-Day session that will focus on strategies for effective enterprise development of BBBEE suppliers that will rapidly increase BBBEE points but can also reduce supplier costs and even increase revenue.

The business world normally associates the term Enterprise Development (“ED”) with some or other form of philanthropy. An example of this would be where the ‘principal’ donates something (usually money) to improve the knowledge-base and to develop the skills-set of the ‘recipient'.

But from a Procurement perspective its also a key strategy that can be used to boost Preferential procurement points and achieve cost reductions.

You will learn tools and tips that can reduce your organisation's expenditure and your staff and yourself time.

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What previous attending delegates had to say about this workshop:

Ithuteng Tabe, Manager: Accreditation & Supplier Development, Johannesburg Water
"Impact of BBBEE on economy. Ver well presented. Thank you very much."

Mercia Daleman, Assistant Purchasing Manager, Johnson Matthey (Pty) Ltd.
“Better understanding about Enterprise Development and what economy really means, with the impact of the companies to make the difference.”

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Three reasons that Guarantee your Satisfaction:

Reason one: We have trained and consulted to more than 140 leading local and international organisations (both private and public) such as:

Absa, Absa CRES, Anglo Platinum, Appletiser, AfriSam, Avis, Barloworld, Barrick, Bamangwato Concessions, Bidvest, British American Tobacco, BHP Billiton, Broadband Infraco, Boart Longyear, Cadbury, Cell C, Ceres, Chevron, City of Cape Town, City of Jo’burg Property Company, City Power, Clover SA, Coca-Cola SABCO, Correctional Services Management, CTICC, Daimler Fleet Management, Denel, De Beers, Drake and Scull, Dept of Health Western Cape, Dept of Science & Technology, Dept of Transport Western Cape, Dept of Water & Forestry, Derivco, The Development Bank of Southern Africa, eThekwini Metro Municipality, Engen, Eskom, Exxaro, Fedics, First National Bank, Free State Development Corporation, General Mills, Gold Fields Shared Services, Goodyear, Govt of the North, GSSC, Hatch, Hewlett Packard, Hulamin Limited, Investec, Johannesburg Development Agency, Johannesburg Fresh Produce Market, Johannesburg Social Housing Company, Johannesburg Water, Joy Mining Machinery, Kraft Foods, Kumba Resources, Letseng Diamonds, Lesotho Electricity Corporation, Liberty Group, Lonmin, Limpopo Treasury, Metro Rail, Metropolitan Life, Mittal Steel, Mobile Telecommunications Namibia, MQA, MTN, Murray & Roberts, Multotec, Namakwa Sands, Namibia Dairies, National Brands, Nampak, National Ports Authority, National Treasury, Nissan SA, Nedbank, Old Mutual, Optimum Coal Mine, Parmalat, PBMR, PFG, Plessey, Premier Foods, R.B.C.T., Richards Bay Minerals, Rand Merchant Bank, Rand Water, Resourcery Limited (Nigeria), Road Accident Fund, Rotran, SAA, SABS, SABC, SA Breweries, Samancor, Sea Harvest, SAPPI, SASSETA, SASOL, SANDF, SARS, Shaft Sinkers, Siemens, Sishen Iron Ore, SITA, Spar, Standard Bank, Total SA, Transnet, Transvaal Sugar, TCTA, TFMC, Tigerbrands, The Rare Group, UCT, University of Westville Durban, Wits University, Umgeni Water, Vodacom, Xstrata Alloys and many others.

Reason two:
Most of our customers rate us as being either "Very Good" or "Excellent" with many of them attending our other courses or sessions once they've attended the first one

Reason three:
We will provide a 100 % Iron-clad MoneyBack Guarantee. If you aren't satisfied with the session, just tell us afterwards and we'll refund 100% of your purchase price. No questions asked. We only ask that you return the manual!
______________________________________________________________________________

To your success!
Bernie van Niekerk
© 2004 Commerce Edge - All Rights Reserved
www.smartprocurement.co.za
0861-334-326
0861-EDGECO

SmartProcurement World Conference 2012

Public Sector Supply Chain Summit,
13 - 15 November 2012, Gallagher Convention Centre, Midrand

SmartSourcing & Cost Management Conference,
13 - 15 November 2012, Gallagher Convention Centre, Midrand

SmartProcurement World EXPO
13 - 15 November 2012, Gallagher Convention Centre, Midrand

]]> Thank you for your interest in our upcoming SmartProcurement Conferences

How to Negotiate with a Sole Supplier

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Workshop Details:

Date: 29 August 2012
Time: 08h00 for 08h30 - 12h30
Place: Centurion Estate Conference Centre
Cost: R1075.00 + VAT per delegate (includes meal and manual)

TO REGISTER: Contact Erieka Santos @ 0861 334 326 or
e-mail: events@smartprocurement.co.za
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]]> In 3.5 Hours, learn how to negotiate more effectively with SOLE SUPPLIERS of any goods and services. Learn NEW tactics for Discovering hidden sources of POWER in existing and new relationships.

Exclusive tools and strategies for uncovering the Supplier's Agenda.

SOLE Suppliers can greatly influence our capability to get Strategic Sourcing benefits. They can also impact the competitiveness of the organisation in a major way as well as raising its risk profile. But is it possible to negotiate with sole suppliers? Surely it is often just a question of just bowing out gracefully?

Not if you have information that the supplier does not want you to know about!

During this session we will work through new tools, guaranteed to uncover hidden sources of power within any negotiation. We will look at tactics to create power when there is none at the moment.

Here is a summary of the benefits you receive

In a SHORT morning session you will learn tools and tips that can save a tremendous amount of frustration. We guarantee that if applied properly these tools will make you more effective negotiating with SOLE Suppliers.

We will go through a step by step approach to prepare for these large negotiations. Included is a section on how to ensure that the end user doesn't get the organisation into this difficult situation in the first place!
Through a case study you will notice the amazing opportunities that are available even when it looks as if they have the upper hand
We will provide you with a detailed reference manual and sample tools.

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What previous attending delegates had to say about this workshop:

Anton de Beer, Buyer, K'Enyuka Engineering Services
“Tips and techniques for planning.”

MF Vermaak, Senior Buyer, Lonmin Platinum
"The 7 Steps. Having guidance in terms of preparation".

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To your success!

Bernie van Niekerk
© 2004 Commerce Edge - All Rights Reserved
www.smartprocurement.co.za
0861-334-326
0861-EDGECO

Public Sector Contract Governance

The Accountant General has proposed a universal Contract Management Framework (CMF) for the public sector in South Africa - applicable to Government Contracts

The recommended implementation date is 2013...

]]> SmartProcurement is hosting a PUBLIC CONTRACTS - GOVERNANCE WORKSHOP that will enable your organisation to plan to:

Investigate the benefits and compliance aspects of the proposed framework.
Consider implementation issue relevant to your contract administration should this framework be adopted.

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Workshop Details

Date: 22 August 2012 in Gauteng
Time: 08h00 for 08h30 - 16h30
Place: Centurion Residential Estate & Conference Centre, Gauteng.
Cost: R3 450 per delegate or R3 100 + VAT per person
for two or more registered from the same organisation.

TO REGISTER: Contact Erieka Santos @ 0861 334 326 or
e-mail: events@smartprocurement.co.za

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In a nutshell

What are the practical and legal implications of, and how will you plan for, the new contract management framework?

The proposed framework is intended to streamline Contract Management in:

ALL National Departments
The 9 Provincial Governments
PUBLIC ENTITIES
State-owned Enterprises

Who should attend?

All HODs, Accounting Officials, Executives, Legal Officers and personnel engaged with the administration, drafting and management of government contracts.

You are invited to attend this one-day skills development workshop which will assist you to develop greater efficiencies in managing public sector contracts.

You will learn the A - Z of the proposed new Government Contract Management
Framework and relevant Guidelines.

Agenda

This practical and technical workshop will address the CMF; the relevant law and regulations; and selected case law. More specifically it will provide you with:

An introduction to and overview of the key elements of the proposed Contract Management Framework for government departments, entities and organisations in South Africa as proposed by the Accountant General.
An insight into the latest guidelines issued by the Accountant General.
Knowledge of contract terminology and how to effectively apply it.
Insight into the essential aspects of sound contract management.
An understanding of why public bodies are referred to as 'creatures of statute' and are bound by the rule of law. i.e. when may public officers apply the usual rules of contract and when are they bound to apply the statutory provisions.
Insight into the ramifications of contracting service providers, suppliers and vendors and binding them to enforceable service level agreements.
Selected legal case studies and how public organisations can apply the outcomes and lessons learned - the best practice!

The presenter is a subject-matter and legal expert who will deal with your FAQs and contract governance in the Public Sector-related enquiries.

To confirm your seat or register as a conference delegate you go to http://www.smartprocurement.co.za or e-mail: events@smartprocurement.co.za

Sourcing and Contracting of Facilities Management Services

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Workshop Details:

Date: 25 July 2012
Time: 08h00 for 08h30 - 16h30
Place: Centurion Estate Conference Centre
Cost: R3135.00 + VAT per delegate (includes meal and manual)

TO REGISTER: Contact Erieka Santos @ 0861 334 326 or
e-mail: events@smartprocurement.co.za
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]]> A One Day Session to Share Leading Strategies for the Sourcing and Contracting of Facilities Management Services.

What sets this commodity group apart, is its high total cost of ownership and the intricacies involved in managing supplier. Learn about comprehensive, leading strategies for the Sourcing and Contracting of Facilities Management Services.

Case study: Managing 430 Facilities Management Suppliers in maintaining 17000 sites.

SmartProcurement offers to share "street-wise" Procurement and Supply Management inputs with you during this new one day workshop on the 2011 Continuing Professional Development Programme.

You will get to understand the Supplier Market, be aware of key RFI and RFQ considerations, the latest technological developments and the Total Cost of Ownership (TCO) of these services throughout their LIFECYCLE, as presented by experts in Facilities Management Strategy.

Investigate how Technological improvements in this area materially affect Procurement Strategies and, how to selecting your cross-functional team to achieve optimal results.

You will become aware of the inherent RISKS in supplier contracts and learn how to manage them efficiently.

During this comprehensive 1 day session you will:

Be exposed to some of the latest Technological and Process developments that are driving the Facilities Management Spend environment today. Our expert presenters have been retained by many large organisations to optimise their strategies in this regard.
Hear about the latest local and international research regarding Facilities Management Strategies.
Understand key drivers in the Supply Market that determine supplier behaviour. Know what makes these suppliers tick and, how to negotiate to your advantage!
Be presented with accurate information on developing a lifecycle model for Facilities Management Services.
Through a case study we will analyse the total spend throughout the lifecycle, identify cost elements and look at foolproof mathematical methods for calculating total costs.
All this information will be key to setting up SLA's and monitoring contracts.
Be informed about the MAJOR RISKS that are prevalent in Facilities Management Services supplier contracts. In other words: Find out what they would LOVE for you to sign...

You will learn about tools and tips that can save your organisation money and, save you and your staff precious time. Guaranteed!

______________________________________________________________________________

What previous attending delegates had to say about this workshop:

Welile Malatji, Commodtiy Manager, Standard Bank
"Was interesting interacting with other procuremenr professionals & learning more about the industry."

Sabelo Ngwabi, Commodity Manager: Facilities, SAB
“Managing SLA's, practicality, examples & excersises.”

Olinka Leo, Procurement Officer, Tenova Pyromet
"The presenter kept it interesting and interactive."

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Three reasons that Guarantee your Satisfaction:

Reason one: We have trained and consulted to more than 140 leading local and international organisations (both private and public) such as:'

Absa, Absa CRES, Anglo Platinum, Appletiser, AfriSam, Avis, Barloworld, Barrick, Bamangwato Concessions, Bidvest, British American Tobacco, BHP Billiton, Broadband Infraco, Boart Longyear, Cadbury, Cell C, Ceres, Chevron, City of Cape Town, City of Jo’burg Property Company, City Power, Clover SA, Coca-Cola SABCO, Correctional Services Management, CTICC, Daimler Fleet Management, Denel, De Beers, Drake and Scull, Dept of Health Western Cape, Dept of Science & Technology, Dept of Transport Western Cape, Dept of Water & Forestry, Derivco, The Development Bank of Southern Africa, eThekwini Metro Municipality, Engen, Eskom, Exxaro, Fedics, First National Bank, Free State Development Corporation, General Mills, Gold Fields Shared Services, Goodyear, Govt of the North, GSSC, Hatch, Hewlett Packard, Hulamin Limited, Investec, Johannesburg Development Agency, Johannesburg Fresh Produce Market, Johannesburg Social Housing Company, Johannesburg Water, Joy Mining Machinery, Kraft Foods, Kumba Resources, Letseng Diamonds, Lesotho Electricity Corporation, Liberty Group, Lonmin, Limpopo Treasury, Metro Rail, Metropolitan Life, Mittal Steel, Mobile Telecommunications Namibia, MQA, MTN, Murray & Roberts, Multotec, Namakwa Sands, Namibia Dairies, National Brands, Nampak, National Ports Authority, National Treasury, Nissan SA, Nedbank, Old Mutual, Optimum Coal Mine, Parmalat, PBMR, PFG, Plessey, Premier Foods, R.B.C.T., Richards Bay Minerals, Rand Merchant Bank, Rand Water, Resourcery Limited (Nigeria), Road Accident Fund, Rotran, SAA, SABS, SABC, SA Breweries, Samancor, Sea Harvest, SAPPI, SASSETA, SASOL, SANDF, SARS, Shaft Sinkers, Siemens, Sishen Iron Ore, SITA, Spar, Standard Bank, Total SA, Transnet, Transvaal Sugar, TCTA, TFMC, Tigerbrands, The Rare Group, UCT, University of Westville Durban, Wits University, Umgeni Water, Vodacom, Xstrata Alloys and many others.

Reason two:
Most of our customers rate us as being either "Very Good" or "Excellent" with many of them attending our other courses or sessions once they've attended the first one

To your success!

Bernie van Niekerk
© 2004 Commerce Edge - All Rights Reserved
www.smartprocurement.co.za
0861-334-326
0861-EDGECO

Professional Update - Recruitment and Talent Management

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Workshop Details

Date: 18 July 2012
Time: 08h00 for 08h30 - 12h30
Place: Centurion Estate Conference Centre
Cost: R1075.00 + VAT per delegate (includes manual and
followed by an optional networking lunch at the Centurion Golf Estate)

TO REGISTER: Contact Erieka Santos @ 0861 334 326 or
e-mail: events@smartprocurement.co.za

_______________________________________________________________________

]]> “Research indicates that only 10% of recruitment spend goes through preferred suppliers, while 90% of the spend goes to agencies that can fill the posts. Furthermore, a buyer’s negotiating power with recruitment agencies has diminished in recent times, with the top candidates going to people who pay the best”
- Alan Low, MD of benchmarking specialists Purchasing Index.

As the supply market continues to tighten in the strategic areas of leadership, management, operational and technical skills, Purchasing Index and SmartProcurement are facilitating a professional update with the spotlight on recruitment and talent management services, which play a crucial (usually outsourced) role within Procurement, HR and the Business.

In this 3½ hour morning session the latest key trends (e.g. the present shift is toward collaborative relationships) will be addressed by a panel of subject matter experts to provide fresh insights into the challenges and opportunities facing top management. The panel will share fresh and innovative ideas, provide new solutions and tools and, analyse the processes that will be defining the future of these services in overcoming the skills and talent shortage.

The chairman will focus the spotlight on the following issues and questions:

What are the present benchmarks relating to national HR service providers?
What is the truth behind the skills shortage, based on a skills market analysis by Adcorp and how this effects your organisation?
How can we make the recruitment process more effective and less costly while procuring the best candidates? Understand the pitfalls.
What considerations are needed for an efficient recruitment strategy that supports organisations talent management objectives?
The power of management information in HR and the recruitment process in cutting process times and savings internal costs.

What you will get out of the session:

Understand the South African skills market, and review your organisation’s policies in line with the challenges.
Insights into what increases the costs of recruitment and how organisations can manage this. What you can do to reduce recruitment costs.
Expert information that will enable you to review your recruitment requirements and strategies, removing the pitfalls and introducing aspects for an effective recruitment plan that supports talent management.
The benefits of effective management information in the recruitment and talent management space. Gain guidelines as to how you may justify the costs and resources needed to implement an effective recruitment management system.
The ability to network and share ideas and work on solutions together with industry peers.
Have the opportunity to pose questions to the speaker panel.

This session is for you...

...If you’re feeling alone out there with your organisation’s recruitment and talent management challenges... If you want to give a voice to your issues and share insights with industry players and contemporaries.

Are you are a Procurement professional needing to put effective agreements in place with recruitment agencies, while supporting the organisations strategies and talent requirements?
Are you a HR professional needing insights into how to best meet the challenges of recruiting the best people in the most efficient manner to meet your organisation’s talent requirements?
If you are a Business manager and face challenges getting the best personnel to support your business goals, and need to understand the impact of skills availability.
This session will also highlight the power of Collaboration in the most significant challenge facing business today.

"In 3½ hours you will learn more about the current status of the recruitment and skills market and how organisations should go about obtaining and recruiting their most important asset - human resources!"

Adcorp research estimates that there are currently 829 800 un-filled positions
for high-skilled workers.

By being fully informed on the complexities of this commodity group, you will save your organisation money, and your staff and yourself time. Guaranteed!

______________________________________________________________________________

Three reasons that Guarantee your Satisfaction:

Reason one: We have trained and consulted to more than 140 leading local and international organisations (both private and public) such as:

Absa, Absa CRES, Anglo Platinum, Appletiser, AfriSam, Avis, Barloworld, Barrick, Bamangwato Concessions, Bidvest, British American Tobacco, BHP Billiton, Broadband Infraco, Boart Longyear, Cadbury, Cell C, Ceres, Chevron, City of Cape Town, City of Jo’burg Property Company, City Power, Clover SA, Coca-Cola SABCO, Correctional Services Management, CTICC, Daimler Fleet Management, Denel, De Beers, Drake and Scull, Dept of Health Western Cape, Dept of Science & Technology, Dept of Transport Western Cape, Dept of Water & Forestry, Derivco, The Development Bank of Southern Africa, eThekwini Metro Municipality, Engen, Eskom, Exxaro, Fedics, First National Bank, Free State Development Corporation, General Mills, Gold Fields Shared Services, Goodyear, Govt of the North, GSSC, Hatch, Hewlett Packard, Hulamin Limited, Investec, Johannesburg Development Agency, Johannesburg Fresh Produce Market, Johannesburg Social Housing Company, Johannesburg Water, Joy Mining Machinery, Kraft Foods, Kumba Resources, Letseng Diamonds, Lesotho Electricity Corporation, Liberty Group, Lonmin, Limpopo Treasury, Metro Rail, Metropolitan Life, Mittal Steel, Mobile Telecommunications Namibia, MQA, MTN, Murray & Roberts, Multotec, Namakwa Sands, Namibia Dairies, National Brands, Nampak, National Ports Authority, National Treasury, Nissan SA, Nedbank, Old Mutual, Optimum Coal Mine, Parmalat, PBMR, PFG, Plessey, Premier Foods, R.B.C.T., Richards Bay Minerals, Rand Merchant Bank, Rand Water, Resourcery Limited (Nigeria), Road Accident Fund, Rotran, SAA, SABS, SABC, SA Breweries, Samancor, Sea Harvest, SAPPI, SASSETA, SASOL, SANDF, SARS, Shaft Sinkers, Siemens, Sishen Iron Ore, SITA, Spar, Standard Bank, Total SA, Transnet, Transvaal Sugar, TCTA, TFMC, Tigerbrands, The Rare Group, UCT, University of Westville Durban, Wits University, Umgeni Water, Vodacom, Xstrata Alloys and many others.

Reason two:
Most of our customers rate us as being either "Very Good" or "Excellent" with many of them attending our other courses or sessions once they've attended the first one

Reason three:
We will provide a 100 % Iron-clad MoneyBack Guarantee. If you aren't satisfied with the session, just tell us afterwards and we'll refund 100% of your purchase price. No questions asked. We only ask that you return the manual!
_____________________________________________________________

To your success!

Bernie van Niekerk
© 2004 Commerce Edge - All Rights Reserved
www.smartprocurement.co.za
0861-334-326
0861-EDGECO

Sourcing and Contracting of Corporate Travl

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Workshop Details:

Date: 20 June 2012
Time: 08h00 for 08h30 - 16h30
Place: Centurion Estate Conference Centre
Cost: R3135.00 + VAT per delegate (includes meal and manual)

TO REGISTER: Contact Erieka Santos @ 0861 334 326 or
e-mail: events@smartprocurement.co.za
___________________________________________________________________________

]]> One Day TCO Session to Share Leading Strategies for the Sourcing and Contracting of Corporate Travel. Learn about comprehensive, leading strategies for the Sourcing and Contracting of Corporate Travel.

SmartProcurement offers to share "street-wise" Procurement and Supply Management inputs with you during this new one day workshop on the Continuing Professional Development Programme.

You will get to understand the Supplier Market, be aware of key RFI and RFQ considerations, the latest technological developments and the Total Cost of Ownership (TCO) of these services throughout their LIFECYCLE, as presented by experts in Corporate Travel.

Investigate how Technological improvements in this area materially affect Procurement Strategies and, the IT influence on selecting your cross-functional teams to achieve optimal results.
You will become aware of the inherent RISKS in supplier contracts and learn how to manage them efficiently.

During this comprehensive 1 day session you will:

Be exposed to some of the latest Technological developments that are driving the Corporate Travel environment today and how to develop a spend strategy with full buy-in from your organisation.
The effect of travel options on organisational staff.
Ensuring that Travel-spend is corralled, and no area of the organisation escapes the disciplines and procedures that bring about cost reduction, year on year.
Understand the true cost drivers in travel (airline, agent, accommodation, car hire, cancellations...) while also reducing the overall travel demand.
Understand key drivers in the Supply Market that determine supplier behaviour. Know what makes these suppliers tick and, how to negotiate to your advantage!
Modern trends in the buying of travel.
Be presented with accurate information on developing a lifecycle model for Corporate Travel.
Through a case study we will analyse the total spend throughout the lifecycle, identify cost elements and look at foolproof mathematical methods for calculating total costs.
Supply options for travel and the control options in travel spend.
The potential loss (cost) induced by safety in travel.
All this information will be key to setting up SLA's and monitoring contracts.
Be informed about the MAJOR RISKS that are prevalent in Corporate Travel supplier contracts.

You will learn about tools and tips that can save your organisation money and, save you and your staff precious time. Guaranteed!

______________________________________________________________________________

What previous attending delegates had to say about this workshop:

Bev Maclean, Executive PA, Areva Resources SA
"Thoroughly enjoyed the course, found it useful."

Anthea Hurly, Travel Manager, Liberty
“Content [was good] and the way it was presented.”

Davina Comaren, Graduate-in-training: SCM, Transnet Ltd
"Interaction with other members of differenct organisations. Very enlightening."

______________________________________________________________________________

Three reasons that Guarantee your Satisfaction:

Reason one: We have trained and consulted to more than 140 leading local and international organisations (both private and public) such as:

Absa, Absa CRES, Anglo Platinum, Appletiser, AfriSam, Avis, Barloworld, Barrick, Bamangwato Concessions, Bidvest, British American Tobacco, BHP Billiton, Broadband Infraco, Boart Longyear, Cadbury, Cell C, Ceres, Chevron, City of Cape Town, City of Jo’burg Property Company, City Power, Clover SA, Coca-Cola SABCO, Correctional Services Management, CTICC, Daimler Fleet Management, Denel, De Beers, Drake and Scull, Dept of Health Western Cape, Dept of Science & Technology, Dept of Transport Western Cape, Dept of Water & Forestry, Derivco, The Development Bank of Southern Africa, eThekwini Metro Municipality, Engen, Eskom, Exxaro, Fedics, First National Bank, Free State Development Corporation, General Mills, Gold Fields Shared Services, Goodyear, Govt of the North, GSSC, Hatch, Hewlett Packard, Hulamin Limited, Investec, Johannesburg Development Agency, Johannesburg Fresh Produce Market, Johannesburg Social Housing Company, Johannesburg Water, Joy Mining Machinery, Kraft Foods, Kumba Resources, Letseng Diamonds, Lesotho Electricity Corporation, Liberty Group, Lonmin, Limpopo Treasury, Metro Rail, Metropolitan Life, Mittal Steel, Mobile Telecommunications Namibia, MQA, MTN, Murray & Roberts, Multotec, Namakwa Sands, Namibia Dairies, National Brands, Nampak, National Ports Authority, National Treasury, Nissan SA, Nedbank, Old Mutual, Optimum Coal Mine, Parmalat, PBMR, PFG, Plessey, Premier Foods, R.B.C.T., Richards Bay Minerals, Rand Merchant Bank, Rand Water, Resourcery Limited (Nigeria), Road Accident Fund, Rotran, SAA, SABS, SABC, SA Breweries, Samancor, Sea Harvest, SAPPI, SASSETA, SASOL, SANDF, SARS, Shaft Sinkers, Siemens, Sishen Iron Ore, SITA, Spar, Standard Bank, Total SA, Transnet, Transvaal Sugar, TCTA, TFMC, Tigerbrands, The Rare Group, UCT, University of Westville Durban, Wits University, Umgeni Water, Vodacom, Xstrata Alloys and many others.

Reason two:
Most of our customers rate us as being either "Very Good" or "Excellent" with many of them attending our other courses or sessions once they've attended the first one

Reason three:
We will provide a 100 % Iron-clad MoneyBack Guarantee. If you aren't satisfied with the session, just tell us afterwards and we'll refund 100% of your purchase price. No questions asked. We only ask that you return the manual!
____________________________________________________________________________

To your success!

Bernie van Niekerk
© 2004 Commerce Edge - All Rights Reserved
www.smartprocurement.co.za
0861-334-326
0861-EDGECO

Leading Tactics for Risk Management in the Procurement Environment

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Workshop Details

Date: Wednesday, 13 June 2012
Time: 12h00 for 12h30 until 16h30
Place: Centurion Estate Conference Centre
Cost: R1075.00 + VAT per delegate (includes a meal and manual)

TO REGISTER: Contact Erieka Santos @ 0861 334 326 or
e-mail: events@smartprocurement.co.za
_______________________________________________________________________________

]]> Identifying, Analysing and Managing Risk in Procurement and Supply

As you are well aware, Procurement and Supply Risks can be detrimental to an organisation, mishaps that often seem to radiate out of control, long after and much wider than might have been expected.

Every practitioner in the Procurement environment appreciates the need to identify and manage risks. The need, that is, for a systematic and effective approach. SmartProcurement’s half-day session will provide you with insight and practical methods for managing risk.

Join us to refine your knowledge on practical and effective ways to keep Procurement risk to a minimum in your environment. SmartProcurement’s session is based on solid theoretical concepts and years of practical experience.

It is presented in an easy to follow style with practical tools that you can take away for your effective use in your environment. We will cover a variety of crucially important topics during this half-day session; including:

How to Identify Risks - defining and understanding Risk Management in the broad business context & indentifying the ‘real’ sources of Risk in Procurement
How to Analyse Risks - the different general approaches to Risk including a Risk management process for Procurement and a list of typical Risks in Procurement
How to Manage Risks - the primary sources of Risk and the types of Risk response as well as practical tools and templates to use in Risk Management
Prevention: How to prevent risks from turning into mishaps
Minimising: How to contain mishaps if they occur
Planning: Prioritising risks and how to make others understand the risks we face
Tracking: How to track and display risk during a commodity / contract lifecycle
Key Risk containment elements for the sourcing process and the supplier management process.

_______________________________________________________________________________

What previous attending delegates had to say about this workshop:

Mosai Maletswa, Contract Administrator
"The facilitator is very practical and have knowledge on the content."

Sibongile Makhaza, Procurement Officer
“Got a better understanding of Risk Management and where to start when looking at the aspects of Risk Management.”

Annalese De La Rey, Executive Personal Assistand to GM Procurement, MTN (Pty) Ltd.
"Well worth it. I've learnt a lot."

______________________________________________________________________________

Three reasons that Guarantee your Satisfaction:

Reason one: We have trained and consulted to more than 140 leading local and international organisations (both private and public) such as:

Reason two:

Most of our customers rate us as being either "Very Good" or "Excellent" with many of them attending our other courses or sessions once they've attended the first one

Reason three:

We will provide a 100 % Iron-clad MoneyBack Guarantee. If you aren't satisfied with the session, just tell us afterwards and we'll refund 100% of your purchase price. No questions asked. We only ask that you return the manual!

_______________________________________________________________________________

To your success!

Bernie van Niekerk

www.smartprocurement.co.za

0861-334-326

0861-EDGECO

Expenditure Analysis: TCO Series

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Workshop Details:

Date: 30 May 2012
Time: 08h00 for 08h30 - 12h30
Place: Centurion Estate Conference Centre
Cost: R1275.00 + VAT per delegate (includes meal and manual)

TO REGISTER: Contact Erieka Santos @ 0861 334 326 or
e-mail: events@smartprocurement.co.za
__________________________________________________________________________

]]> New Generation Techniques, Tools & Hot Tips Breakfast Series. During a morning session, learn the secrets of EASY, SIMPLE and VERY FAST techniques for analysing SPEND and evaluating SUPPLIER BIDS.

You'll be pleasantly surprised to learn what can be done with new generation technology and on-line tools! If spend analysis has ever been an issue for you, or if getting procurement information is like extracting teeth, SmartProcurement would like to invite you to spend a productive day with us, where we will:

Show you the "secret" tools that consultants and CA's use to come up with all their fancy tables and graphs. These Microsoft goodies have been available since before 1997, and yet most procurement professionals do not know how to use them properly.

We will demonstrate how to do complex analysis, that sometimes take days and weeks to complete, in a flash. (Literally in seconds!)

Usually when procurement is looking for a non-standard report, it has to go to wait for ages until the internal (or is that infernal?) IT department has produced it. And there's also waiting in the queue for everybody else to get their data as well! Usually once you get the data, you realise that you wanted to know something else as well!! And then its back into queue!

We will show you how to have incredible flexibility in defining what reports you want and how to obtain them NOW and not LATER when its too late!We will go through examples of spend analysis and complete them before you've even told your secretary what to tell internal IT!

You probably also have issues with BAD INFORMATION. We'll go through methods on how to make the most with incorrectly codified and classified procurement data!

Here is a summary of THE BENEFITS you receive:

In a full day session you will learn tools and tips that will save your staff and yourself many days, if not weeks in the years to come!

We will go through a step by step approach to analyzing the spend using Microsoft Excel Pivot Tables - so please bring along your lap-top!
We will provide you with a detailed reference manual for future reference
You will receive a comprehensive Electronic File with sample reports using sample procurement information, that you can use
Using actual sample procurement information, we will extract reports that procurement can use for the following applications:
o Strategic Sourcing and Commodity management. If you are about to embark on strategic sourcing or if you're a commodity manager about to start optimising an area of the spend, these tools will be crucial
o Asking questions such as Who spent What with Which Suppliers and When is easily answered.
o Analysis of transactions - per supplier, per division, below certain values or transaction trends can be quickly obtained.
o How to do instant Supplier Bid evaluation
o How to compare prices between various parts of your organisation instantly!
Even if your information is not properly categorised, we'll go through methods to make sense of BAD Information!

Please note: This session is NOT intended for individuals who already have extensive experience in these type of tools!

______________________________________________________________________________

What previous attending delegates had to say about this workshop:

Lettie Marais, Procurement Manager, Transnet Rail Engineering
"The best training I received this year [2009] - thank you, this is going to reduce the time I spend at the office. I am exited to go back and practice."

Colette Yende, Commodity Manager, Transnet
“This was useful in that it shows you can have different ways of using information. The data can also give more insight in strategic development. .”

Mecia Simelane, Business Analyst, Transnet Rail & Engineering.
"Worth attending, I know I will save time."

______________________________________________________________________________

Reason two:
Most of our customers rate us as being either "Very Good" or "Excellent" with many of them attending our other courses or sessions once they've attended the first one

Reason three:
We will provide a 100 % Iron-clad MoneyBack Guarantee. If you aren't satisfied with the session, just tell us afterwards and we'll refund 100% of your purchase price. No questions asked. We only ask that you return the manual!
____________________________________________________________________________

To your success!

Bernie van Niekerk
© 2004 Commerce Edge - All Rights Reserved
www.smartprocurement.co.za
0861-334-326
0861-EDGECO

Amended PPPFA Regulations 2011

DECEMBER 7, 2011 marked an important change in regulations under which ALL GOVERNMENT BIDS and QUOTES OVER R30 000 must now comply with the amended Preferential Procurement Regulations 2011.

]]> These amendments have a far reaching effect on doing business with and tendering for all government contracts. The amendments apply to:

All National Departments.
The 9 Provincial Governments, Metro’s and Municipalities.
Most Schedule 3 public entities and State Owned Enterprise's.
Schedule 2 (Eskom, Transnet, SABC, SAA etc.)
Some Schedule 3 public entities (e.g. the Water Boards) received a one year reprieve on some of the regulations, but despite this, many have decided to continue implementing some regulations.

Is your organisation prepared for this?

What are the practical and legal implications of the new Preferential Procurement Regulations 2011 (PPPFA)?

How to implement the 2011 regulations?

You are invited to attend this one-day skills development workshop, following its success at the Public Sector Supply Chain Summit 2011 and subsequent sessions attended by over 500 procurement and supplier executives from both the private and public sectors.

This practical and technical workshop addresses the implications for Procurement, service providers, suppliers and vendors.

Delegates will come away with:

An overview of the key changes introduced by the PPPFA Regulations 2011.
An update on the latest Preferential Procurement guidelines issued by National Treasury.
An update on which regulations are exempt for which public sector organisations and which regulations still apply to all.
Practical and strategic insights into the impact on functional evaluations and thresholds.
New guidelines on the treatment of local content and “designated and non-designated industries”.
An understanding of the implications on suppliers and practitioners for the need for B-BBEE certificates.
Significant ramifications on sub-contracting and Consortiums / Joint Ventures.
Selected past legal PPPFA case studies and how organisations can apply the lessons learnt to the new regulations.

The presenters are subject-matter experts who will also deal with your FAQs and sector-related questions.

When?
Date: Tuesday, 22 May 2012, Gauteng
Venue:
Gauteng: Centurion Residential Golf & Conference Centre, Centurion
Time: 08:30 – 15:30
Rate: R3,450 per delegate or R3,100 pp for two or more registered from same organisation.
Includes: Detailed reference printed folder with copies of slides and PPPFA and Regulations.

Contact Details
Contact – Erieka Santos
Email: events@smartprocurement.co.za
Telephone: 086 133 4326 opt 3
Fax: 086 550 6660

To confirm your seat or register as a conference delegate you can give us a call on the above numbers, go to http://www.smartprocurement.co.za or e-mail: admin@smartprocurement.co.za

“Very informative and the new regulations for preferential procurement was well explained. Once again Commerce Edge / SmartProcurement have outdone themselves.” - Laurinda Glinister, Procurement Manager from Eqstra Flexi Fleet.

“Very informative, with content that is relevant. Great insight into the implementation and application of the amendments." - Indira Panday, Procurement Manager from Denel (Pty) Ltd.

“Understanding how the amendments will affect and assist in sourcing service providers.The course is beneficial." - Thembekile Mabela, Training Manager from SABC.

“Relevant to my organisation, presented in a user friendly way." - Hillary Lawson, Procurement Officer from Komatiland Forests (Pty) Ltd.

“The course is interactive and it clears the misinterprestations we encounter when filling in tenders. The process was informative and promotes compliance for the best tender practices." - Priscilla Madondo, Tender Administrator for Fidelity Sercurity Services.

“Detailed explination on the new requirements. Was very beneficial to me as a Tender Administrator."
- Luccille Thompson from Fidelity Security Services.

BBBEE Update and Key Questions answered

__________________________________________________________________________

Workshop Details

Date: 17 May 2012
Time: 08h00 for 08h30 - 16h30
Place: Centurion Residential Golf Estate
Cost: R2950.00 + VAT per delegate (includes meal and manual)

TO REGISTER: Contact Erieka Santos @ 0861 334 326 or
e-mail: events@smartprocurement.co.za

_________________________________________________________________________

]]> Several important new questions and implications arise for the procurement fraternity that will drive purchasing strategy regarding the Gazetted BBBEE codes of good Practice.

During this short one day session you will learn tools and tips that can save your organisation money and your staff and you time. The content includes:

Hear from leading legal, procurement and corporate governance experts regarding the South African BBBEE Scorecard and its implications for the procurement function
Certain parts of the spend will get your company points faster than other areas. How to identify and fast track these areas...
What preparation does our procurement department need to do to, and what strategy should we follow to achieve a succesful rating?
Understand which areas you can exclude from your procurement spend.
How do we transform our spend quickly?
Where do you get Bonus Points? Are there any grey areas and how do we deal with those?
What about BEE suppliers that we assist and develop?
Which rating agency certificates should you accept as a procurement department?
Understand the role of rating agencies and what their own BBBEE criteria should be like.
How to choose and recommend a good rating agency.
How do we deal with Fronting in this context?
Can we / should we determine Supplier Ratings ourselves?
How should your company change its procurement systems to accomodate the requirements of the codes?
What preparation should the procurement function do in order for your company to be rated?
Where should you spend your time in getting your procurement spend transformed... quickly?
What about smaller suppliers?
How do you get 100% recognition from your spend with companies with a turnover of less than R5m.
How to deal with suppliers whose turnover is between R5m and R35m?
How will the Procurement function be evaluated based on the latest codes of good practice?
How should Suppliers be evaluated in the future? Discuss how to deal with existing supplier relationships.
Sector charters vs. the scorecard - which will prevail?
Understand in more detail how the various parts of the scorecard are calculated especially from a procurement perspective
Be able to calculate equity points based on the revised flow through principle
Be clear on when "narrow based" empowerment criteria are to be replaced with "broad based" criteria

In conjunction with EES-Siyakha

You will learn tools and tips that can save your organisation money and
your staff and yourself time. Guaranteed.

______________________________________________________________________________

What previous attending delegates had to say about this workshop:

Pele Mavela, Strategic Sourcing & BEE Consultant, Telkom SA
"Eye-opener to nitty-gritty of the score card. What to look in improving the level of supplier. What segments exist in classifying suppliers. How to calculate the scores to reach a certain level."

Dale Lottering, Impala Platinum Ltd, Rustenburg
“I found the course content extremely informative, professionally presented and full of useful tips to optimise on scoring opportunities.”

Nicholas Mbambo, BBBEE Consultant, Telkom SA
"More detailed analysis of preferential procurement and enterprise development and the presenters kept to quality time management."

______________________________________________________________________________

Three reasons that Guarantee your Satisfaction:

Reason one: We have trained and consulted to more than 140 leading local and international organisations (both private and public) such as:

Reason two:

Most of our customers rate us as being either "Very Good" or "Excellent" with many of them attending our other courses or sessions once they've attended the first one

Reason three:

_____________________________________________________________

To your success!

Bernie van Niekerk

www.smartprocurement.co.za

0861-334-326

0861-EDGECO

Income tax act offers some BBBEE compliance relief

BBBEE has also become a business imperative, and with the updating of the Codes of Good Practice currently underway, is likely to remain so for the foreseeable future.

While no tax incentives or legislation have been enacted to specifically provide relief for BBBEE compliance, various sections of the Income Tax Act can, actually, offer some relief, says Dirk Kotze, tax partner at global audit, tax and advisory firm Mazars, says in this month's SmartProcurement.

]]> For example, the management control, employment equity and preferential procurement requirements of the Generic Scorecard do not necessarily have to be catered for in tax legislation as the salaries and costs involved in appointing and training management, adhering to labour requirements and selecting appropriate suppliers should be automatically tax deductible.

The enterprise development leg of the scorecard, however, appears to be the odd one out, says Kotze, especially considering what the Codes of Good Practice regard as enterprise development. Apart from the early payment of BBBEE creditors or larger settlement discounts for BBBEE customers, many of the initiatives involve providing BBBEE enterprises with the financial means to grow their operations, i.e. cash grants made, loans granted on preferential terms (no or low interest, advantageous repayment terms), granting the use of business assets for no consideration etc.

“The question is whether the cost incurred is tax deductible in the hands of the person making the enterprise development contribution, especially where assets have been given to the BBBEE enterprise or where cash grants have been provided. Are the contributions capital in nature, are they in the production of income and can they potentially be regarded as donations?”

In the hands of the recipient, the question would be whether the benefit received would be gross income subject to tax? Would the acceptance of a cash grant be for services rendered although there are no strings attached, would the loan granted on beneficial terms be regarded as a capital gain, would the waiver of repayment of interest be a recoupment?

“Questions can also be asked about the VAT treatment in respect of assets provided by companies to BBBEE enterprises or what the VAT treatment is of a cash grant received by a BBBEE enterprise from another entity,” Kotze says.

SARS has issued various Binding Private and Binding Class rulings dealing with costs and expenditure incurred on various BBBEE initiatives, but none of these seems to address the enterprise development leg of the scorecard, either for income tax or VAT.

“It may, however, be counter productive to consider the costs non-deductible in the hands of the persons making the contributions or making it taxable in the hands of the BBBEE beneficiaries.”

Kotze says that until some clarity on these matters is provided by way of legislation or a SARS practice or class ruling, businesses entering into these initiatives would be well advised to carefully consider the tax and VAT implications at the outset.

Supply chain fraud in the African context

Fraud and corruption in the supply chain management (SCM) environment, such as unauthorised rebates, kickbacks and dubious vendor relationships, are prevalent in the business and public sectors. Lucille Jansen van Vuuren of Volition Consulting Services discusses the nature of Africa’s beast, in this month’s SmartProcurement.]]> The actual cost associated with supply chain fraud is difficult to determine, but various research studies indicate:
• More than US$1-trillion is paid in bribes each year (World Bank report).
• Besides poverty and unemployment, corruption has been identified as a topmost national problem (UNECA African Governance Report)
• Company fraud, theft and corruption in South Africa is costing the business community over R100-billion a year, according to new data released by audit firm BDO (SAPA)
• The annual cost of fraud in companies has been estimated by numerous surveys to be between 1 to 7% of turnover. (Various surveys)

Where does fraud occur in the supply chain?

The inbound and the outbound supply chain are vulnerable to fraud risk (see image alongside).

In the inbound supply chain the risk is predominantly focused on the procurement process, several steps of which are vulnerable to fraud:
• Specifications
• Solicitation
• Evaluation and award
• Receipt and / or confirmation of service delivery
• Supplier Payment

Most companies focus on this aspect of the SCM process when discussing anti-fraud and corruption measures.

The outbound Supply Chain’s risks are mostly centered on warehousing, shipping (packaging) and delivery.

The fraud triangle – an African view

While there may be consensus on the severity and consequences of corruption, there is disagreement around how to understand its roots and dynamics, and on the policy solutions to combat it.

Amongst the theoretical explanations of the problem in the African context, the most prevalent are the institutional, public choice and cultural theories.

The institutional theory focuses on what it considers as the weak institutional structures, processes and capacities of African countries; arguing that Africa operates more through informal structures and processes, with an ‘economy of affection’ that allows for flexible and manipulative rules of political and economic transactions in which negotiations through bribery are a major means of securing agreements, contracts and political consent.

The cultural theory contends that embedded in Africa’s social structure - its values, mores and social organisation - are traits conducive for corruption to thrive. Linked with the low per capita income prevalent in the continent, this is a recipe for individuals to eke out their meager salary with what is seen as taking only a ‘drop from the ocean’.

The push for survival, personal wealth and betterment which constitutes a capitalist system generates opportunity-seeking behaviours of various kinds and promotes a generally unhealthy approach to business and transaction execution. Underhand or more subtle corrupt practices constitute a driving force of the system. (International Conference on Institutions, Culture and Corruption in Africa, 29–31 October 2008, Addis Ababa, Ethiopia)

How do these theories relate to the well-known Fraud Triangle?

What to do about fraud?

Whilst the risk of fraud cannot be eliminated entirely, an institution can implement or have controls in place to reduce the likelihood of it occurring. Effective fraud risk management is not one-dimensional and includes the following actions: (see image alongside)

Instances of fraud and corruption in the supply chain cycle are not easy to detect, prove or prosecute. Prevention is always better than cure. The amounts paid to settle any claims resulting from exposed fraud will always be secondary to the loss of reputation and integrity that companies / institutions may suffer for being associated with such claims.

Join Volition at the SAPICS conference and learn more about how to develop and implement an effective supply chain fraud risk strategy.

Lucille Jansen van Vuuren is a business unit manager at Volition specialising in procurement, outsourcing and business process development. For more information contact her at LJvanvuuren@volition.co.za

April PMI declines as demand begins to ease

The seasonally adjusted Kagiso Purchasing Managers Index (PMI) fell for the second consecutive month, declining by 1.4 index points to reach 53.7 in April 2012.

There are indications that the Index could moderate even further, says Abdul Davids, Head of Research at Kagiso Asset Management.

]]> The New Sales Orders Index, the largest weighted PMI sub-component, declined to 55.4 in April from 59.7 in March.

"While this still reflects robust demand for factory goods, we have seen this slowing over the last few months. This is in line with the trend we are currently seeing in Europe, South Africa's key manufacturing export market," says Davids.

The PMI leading indicator (new sales orders as a ratio of inventories) fell to below 1 (0.96) for the first time since December 2011 - a reading below 1 indicates that inventories are too high relative to the demand for manufactured goods, explains Davids.

The index measuring expected business conditions over the next six months experienced the largest decline after losing 6.2 points to reach 56.2, while the Business Activity Index stabilised at a fairly robust level of 57.7 during April. This is indicative of sustained strong manufacturing production growth, says Davids.

The good news on the pricing front is that the Price Index declined to 71.1, its lowest level since January 2011.

However, Davids points out that the spiralling oil price poses the largest upside risk to input costs going forward. "If the oil price were to stabilise at below US$120 per barrel, we would see a sustainable moderation in factory sector input costs," he says.

At 48.8, the Employment Index remained just below the 50 point mark. Although it has been improving, this Index still points to a contraction in employment levels in the manufacturing sector.

Download the report

Procurement's cost focus will become a network growth focus

The last 10 to 15 years have seen intense inward cost focus. The coming 10 years will see attention turn to growth via digitally connected networks that empower buyers to discern, qualify, connect, and collaborate with suppliers, peers and partners. This is the consensus among Procurement Executives who responded to an Ariba survey on Procurement in 2020.]]> Analyzing spending to the Nth detail. Fixing and automating processes. All that inward-looking, intense focus on cutting costs is going to end. Replacing it will be a new outwardly pointed focus on driving growth and expansion through exclusive and integrated supplier relationships and innovation.

“Much of what procurement does today is driven by spend management, but I think, in 10 years, those disciplines will be much more integrated into the normal ways of doing business,” remarks Larry Welch, former Vice President of Indirect Procurement for Hewlett-Packard.

“We have seen procurement adopt an aggressive role in executing massive cost reductions,” agrees Tim Cummins, President and Chief Executive Officer, International Association for Contract and Commercial Management (IACCM). “And, while this has been seen as fundamental to business competitiveness, we all know it is not an endless opportunity.

“I think we are probably coming to the end of the cost-reduction trend that has been very much with us for the last 15 or 20 years.”

In lieu of that intense focus on reducing costs, the procurement executive for a major U.S. insurance company sees life for procurement becoming much more outwardly focused and collaborative.

“We will ask:
• What are the core capabilities suppliers have?
• What are the core capabilities we need in order to do our business well?
• How can we align and link our business strategies with suppliers’ business strategies? and
• How can we drive to best-in-class performance with the suppliers that are best positioned to help us execute our business strategies?

“In the shorter term, it will be all about defining how this is going to work,” he says. “When you look out 10 years, it is going to be all about execution.”

And while, owing to performance gaps, the executive sees some hesitancy to pursue deeply integrated supplier relationships today, he believes it is more important to identify suppliers with the greatest potential for long-term alignment than it is to find perfect performance in every aspect.

“In the end, you need supplier relationships that are tied to your goals. If you can find those, you will have little difficulty working with them to close performance gaps.”

The information in this article was sourced from the report ‘VISION 2020 Ideas for Procurement in 2020 by Industry-Leading Procurement Executives’.