Information technology

What is procurement's future in the 4th Industrial Revolution?

 

Mluleki Ntlemeza.jpgThe fourth Industrial Revolution, characterised by a fusion of technologies that is blurring the Iines between the physical, digital and biological spheres, builds on the digital revolution (known as the Third Industrial Revolution) that has been occurring since the 1950’s, said the World Economic Forum.

'4IR' has seen the emergence of technologies in procurement, which are set to disrupt established methods. Examples are cognitive procurement and Blockchain.

Mluleki Ntlemeza (MCIPS), e-Procurement specialist at PetroSA, unpacks the impact of the fourth Industrial Revolution on the future of procurement in this month’s SmartProcurement.

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.

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.

The 'Millennials' workforce will change the supply chain (Part 1)

 

millennials_1.pngWhile on a search around the web, Richard Downs, Director, Solutions Marketing – EMEA, Ariba, an SAP Company, came across a statistic which made him ponder how traditional business challenges will change in the future: 75% of the workforce in 2025 will be ‘Millennials’.


In part one of two, Downs wonders how traditional procurement challenges will change as businesses start to recruit Millennials in vast numbers.

Procurement's image problem

Delegates.JPGThe Procurement profession has a serious image problem. Most South African organisations, whether corporate or government, still do not see the profession as a strategically important function...

Does single source supply give customers leverage?

Single Source Supply.jpgDuring the Apartheid era, organisations often grew by purchasing or amalgamating with their competitors. As a result, in the 1990s, when organisations had access to the world stage, South Africa had and still has many industries that are controlled by monopolies or duopolies.

PC pricing - New opportunities

Alan Low - Latest.jpg“The supply of Personal Computers (PCs) remains a competitive market, particularly as sales volumes in South Africa may hold up better in 2009 than in other parts of the world, such as Europe and America. One can therefore expect suppliers to be particularly keen to increase market share in this sector. Purchasing Index (PI) continues to benchmark PC configurations, usage and prices amongst a growing number of organisations in various industry sectors; the results have become even more interesting”, Alan Low, CEO of Purchasing Index, told SmartProcurement.

Effective & Efficient IT Procurement... more than hard bargaining.

Deon Basson.JPG"Organisations spend up to 90% of their Information Technology (IT) budgets on external providers, but sometimes fail to get true value for their spend.  This scenario makes the procurement process a critical area in IT as it is essential for organisations to get consistent value for their spent monies”, Deon Basson, MD of 2interact, told SmartProcurement.

Transforming procurement in a strong IT environment: Hardware, Software, Services and Telecomunications case studies

Thumbnail image for Ian Russell.jpg

"How does the procurement function get its hands on the company's IT spend?" is a key question in many large organisations. It turns out that getting the mandate is only the start of the game. Getting a strong IT function to support and implement the proposed procurement strategies is a different kettle of fish. Here follows  Ian Russel, Chief Procurement Officer, ABSA Group Sourcing, (a member of the BARCLAYS Group) thoughts on how he obtained a mandate for procurement intervention in IT spend and strategies that worked in their environment.

SmartTelephony - The costs of business communications are in steady decline

Piet HenningThe world of Business Communications has fast become the focal point of several converging technologies that are racing to fill the worldwide need for cost efficiency and higher productivity. Piet Henning, a communications expert told delegates at a recent Smart Procurement breakfast that: "South Africa is an anomaly in that it is required to serve a large third world region with first world infrastructure and it cannot do so cost effectively because of institutionalised inefficiency’s and hopelessly outdated legislation. And all of that comes at a price! We pay the most exorbitant rates for both our fixed line and mobile telephony."


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