Change

March PMI continues downward trend

PMI.jpgThe seasonally-adjusted Purchasing Managers' Index (PMI) continued downwards to 45 points exactly in March 2019, from 46.2 in February. This was the third consecutive month of decline.

As was the case in February, two of the PMI's major sub-components came in above the 50-point mark, while three were stuck in negative terrain. "However, all but one of the main sub-indices declined compared with February", noted the Bureau for Economic Research (BER).

Is procurement more art than science?

PeterSmith_100.jpgAs we move towards a new decade, is the emphasis in the procurement world changing? Are we going to see a new age where the 'Art of Procurement' comes to the fore? Peter Smith, Chief Officer of Procurement Excellence and European Director, Public Spend Forum, deliberates the topic.

Planning procurement's response to the Millennial Generation

ChrisSawchuk_100.jpgThe Millennial Generation represents one of the greatest potential influences and challenges to managing talent in the next year or two.

Hackett's 2016 Procurement Key Issues study revealed that talent management remains one of the top-three critical or major areas of focus for virtually all procurement organisations. The two perennial favourites, category management and strategic sourcing, make up the other top focus areas.

Combined with the fact that most procurement organisations (especially those in Europe) continue to experience higher levels of staff churn and difficulty attracting great talent, organisations are targeting three specific areas to transform talent. They are:
1. Improving leadership skills
2. Honing business acumen
3. Building specialist procurement skills

"But can procurement cope with, and ultimately benefit from, the disruption brought into talent management by the Millennial Generation?", asks Chris Sawchuk, Principal and Global Procurement Advisory Practice Leader, The Hackett Group.

February 2019 PMI down

Manufacturing_PMI_100.jpgThe seasonally-adjusted Purchasing Managers' Index (PMI) declined to 46.2 index points in February 2019, down from 49.9 in January. "Despite the decline, the average recorded during the first two months of Quarter 1 of 2019 is slightly above the average seen in Quarter 4 of 2018", noted the Bureau for Economic Research (BER) in its February report.

Blockchain will not save the world (at least not this year...)

Bertrand_Malteverne.jpgBlockchain hype has spread like wildfire... "But it's time for a reality check", says Bertrand Maltaverne, Solutions Consultant, who helps organisations to digitally transform their procurement practices.

January PMI points to solid start to 2019

PMI_strong_start_200.jpgThe seasonally-adjusted Purchasing Managers' Index (PMI) edged lower to 49.9 index points in January 2019, down from 50.7 in December 2018.

Despite the decline, the index remains 2 points above the average recorded in 2018, which suggests that manufacturing started the year on fairly solid footing.

The performance of the PMI's sub-components was more mixed, with many of the sub-indices declining compared with their December levels.

Procurement predictions for 2019

LucyPatchett_100.jpgSupply Management's Lucy Patchett takes a look at some of the key trends for 2019...

PMI ends 2018 with its best performance

manu_PMI_100.jpgThe seasonally-adjusted Absa Purchasing Managers' Index (PMI) ended 2018 on a positive note, reaching its best level of the year. The PMI rose from 49.5 in November to 50.7 in December, which is just above the neutral 50-point mark and signals growth in the sector.

The headline PMI was well supported by three of the five sub-components: activity, demand and supplier performance. However, employment moved lower, while the Inventories Index edged back below the neutral 50-point mark, noted the Bureau for Economic Research (BER) in its January report.

November PMI shakes off 3-straight-month decline

PMI_growth.jpgThe seasonally adjusted Absa Purchasing Managers' Index (PMI) rose to 49.5 index points in November from 42.4 in October.

This was the PMI's first increase after three straight months of declines and brought the index to the best level since July 2018.

The improvement was broad-based with four out of the five main subcomponents rising compared with October.

Why is the difference between direct and indirect procurement important?

EmanAbouzeid.jpgThe distinction between direct and indirect procurement was traditionally made in the context of manufacturing businesses. However, procurement disciplines have evolved more widely into the non-manufacturing sector and, accordingly, the distinction between direct and indirect procurement has broadened.

In this month's SmartProcurement, Eman Abouzeid (CSCP, CIPS), a procurement and supply chain professional with global experience, explores some of the supply chain practicalities that arise from the distinction between direct and indirect procurement.

Unchanged PMI dashes hopes that August decline was temporary

Manufacturing_150.jpgThe Purchasing Managers' Index (PMI) remained virtually unchanged at a weak level of 43.2 points in September 2018. "The latest figure dashes any hope that the sharp PMI decline in August was a once-off occurrence", said the Bureau for Economic Research (BER) in its monthly PMI report.

The average level of the PMI in Q3 of 2018 was 46 index points, which is the lowest average since Q3 of 2017 and 3.5 points below the average recorded in Q2 of 2018.

Sharp fall in PMI possibly reflects bleak sentiments around land debate

PMIdown_100.jpgThe seasonally-adjusted Absa Purchasing Managers' Index (PMI) declined to 43.4 points in August from 51.5 points recorded in July. August's level is the lowest recorded in more than a year.

Overall, the average level of the PMI recorded during the first two months of Q3 of 2018 was 47.5, which is below the neutral 50-point mark and two points below the average recorded in Q2 of 2018.

The deterioration was driven by sharp declines in the New Sales Orders Index as well as the Business Activity Index. However, inventories and supplier deliveries came in above the neutral 50-point mark in August, which provided some support to the headline PMI, noted the Bureau for Economic Research (BER).

June PMI falls further, dragged by sentiment around expected business conditions

PMI_down_100.jpgThe seasonally-adjusted Absa Purchasing Managers' Index (PMI) fell further below the neutral 50-point mark in June. The index lost 1.9 points to reach 47.9, down from May's 49.8 points. The dip means that the average level recorded during Q2 of 2018 is only 0.3 points above Q1 of 2018's average and still below the key 50-point level. This suggests that the sector is unlikely to stage a solid recovery after output contracted on a quarter-on-quarter basis in Q1 of 2018.

Are procurement leaders intellectually lazy when forming African strategies?

MorneMostert.jpgAfrica is deeply dichotomous. This reality confronts any procurement leader when addressing the question of African distinctiveness in the process of long-term strategic decision-making, says Dr Morne Mostert, Director of the Institute for Futures Research, in this month's SmartProcurement.

Procurement and the 4th Industrial Revolution

DanBartel.jpgHow can the procurement function adapt to the new reality of Industry 4.0? What can procurement leaders do to lead the change?

To explore possible answers to these questions, Dan Bartel, Group SVP, Head of Procurement & Logistics/Chief Procurement Officer, ABB, unpacks Industry 4.0 in the context of Klaus Schwab's 2016 book, The Fourth Industrial Revolution, in which Schwab (World Economic Forum Founder and Executive Chairman) identifies four significant effects of Industry 4.0 on businesses across industries.

PMI retreats, but Q2 averages higher than Q1

SA_manufacturing.jpgThe seasonally-adjusted Absa Purchasing Managers' Index (PMI) dipped back to just below the neutral 50-point mark in May. The index declined to 49.8 index points, down from 50.9 in April. Despite the fall, the average level of 50.4 points recorded during the first two months of Q2, 2018, is not only above the neutral 50-point mark, but also higher than the 49.2 index points registered in Q1, 2018. This bodes well for a recovery in the manufacturing sector, after manufacturing output contracted on a quarter-on-quarter basis in Q1, 2018.


 

 

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