Procurement must also influence the top-line

| 1 Comment

 

Mpume_Maphumulo.jpgProcurement professionals must challenge themselves to influence the top-line and to collaborate with suppliers to bring innovation into your supply chains, says Mpume Maphumulo, Head of Group Procurement at Pioneer Foods.


Maphumulo and other heads of supply chain were discussing the challenges and objectives they foresee over the next 12 months in the public and business sectors during a Smart Procurement World Western Cape panel discussion.


Her sentiments were shared by the rest of the panel.


“The procurement profession is exciting – and has become a key enabler, but we must use our voice and ability to drive profit and strategy,” said Lillian Magero, Head of Sourcing Professional Services at Barclays Africa.


It is therefore important that procurement professionals understand their own businesses - their key drivers, pain points and day-to-day objectives, said Magero.


“Consequently, procurement professionals’ reward structures must include measures to improve revenue generation.”

 

Isac_Smith.jpg“Within the public sector a business approach is missing from our procurement activities,” said Isac Smith, Chief Director: Asset Management, Western Cape Provincial Treasury.


Procurement officials are required to know the laws and regulations governing public sector supply chain and are consequently rule-driven, rather than business driven. This must change, said Smith, so that the regulations become a framework in which to make supply chain decisions that take a business approach.”


“Business skills create credibility,” said Annelien Herringer, Procurement Manager S&D/F&B, Shell South Africa. “Credibility enables an environment in which a joint procurement strategy can be formulated.”


“Procurement needs to introduce common sense into the organisation,” says Howard Stephens, former Chief Procurement Officer of Nedbank, “By common sense I mean having conversations about value for money with their organisations.”


Enterprise development?


The new codes require us to re-think our strategies and create meaningful relationships with B-BBEE suppliers, said Magero.


“Ask what can we do together? Then listen, plan and implement.”


“In Transnet’s experience,” notes Edward Thomas, Group Executive Manager for Supply Chain, Transnet, “supplier development, through correctly targeted, large contracts, does not cost money. The real challenge lies in encouraging suppliers to become sustainable for the time when your contract with them ends.”


Enterprise development is a balancing act, but it does not cost money if implemented correctly, said Herringer. She added that the BEE Charter is not a “spend responsibility” – rather the responsibility lies across all sectors to build important relationships with suppliers.


“We are in a period of marginal growth, all fighting for decreasing consumer spend. The way forward is through building relationships and managing performance, which requires transparency in both directions and reward and punitive measures to be included in contracts,” concluded Maphumulo.
 

1 Comment

Procurement professionals must challenge themselves to influence the top-line and to collaborate with suppliers to bring innovation into your supply chains, says Mpume Maphumulo, Head of Group Procurement at Pioneer Foods.

I Agree with Me.Mpume Maphumulo, but I still think there is a lack of acknowledgement towards the training of employees in procurement ethics in companies. Without knowledge in Buying practises, procurement professionals will not be able to influence the top-line. Those companies that do acknowledge the importance of well trained professionals, especially in the procurement (Buying) field, get the results. Without proper training and ongoing attendance of seminars, etc., buyers still use old methods that do not contribute toward a win-win solution. It is sad the companies still use untrained employees as procurement professionals and expect results.

Leave a comment


 

 

Career opportunites

Tutor and Coordinator

  • Gauteng Operations, Planning & Inventory Permanent Procurement Management Supplier / Business Development
Purpose of the job: To plan, coach, advise

Commodity Manager

  • <500 000 Commodities Gauteng Procurement Management
Are you a Commodity Manager looking for the

Supply Chain Professional

  • <500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Supply Planning

  • <500 000 Gauteng Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer Procurement Consultant
Are you an Industrial Engineer looking to make

Logistics Manager

  • >500 000 Gauteng Logistics & Warehousing Supply Chain
Seeking vibrant industry specific individuals seeking new opportunities

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for an Operations Manager to take into

Supply Chain Systems Administrator

  • >500 000 Gauteng Procurement Management Strategic Sourcing Supply Chain
One of South Africa's leading, mining companies is

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Procurement Management
Are you an experienced Logistics Manager looking for

Continuous Improvement Manager

  • >500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Warehouse Assistant

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory
I am currently looking for ambitious Demand Planner,

Internal Procurement Officer

  • <500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Position Available: Internal Procurement Officer Status : New ...More

Supply Chain Officer

  • <500 000 Gauteng Procurement Officer / Specialist Supply Chain
Seeking dynamic candidates to take to the market

Supply Chain Planner

  • <500 000 Free State Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Senior Buyer

  • >500 000 Buyer Gauteng Procurement Management
Tech-Pro specialises in placing professionals in the Supply

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer
Tech-Pro specialises in placing professionals in the Supply

Warehouse Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Supply Chain
Seeking hands on individuals that come from an

Manufacturing Purchasing Specialist

  • >500 000 Procurement Officer / Specialist Supply Chain Western Cape
A leading auto manufacture company based in Cape

Procurement Sourcing Specialist

  • <500 000 Gauteng Procurement Consultant Strategic Sourcing
A Leader in the Supply Chain industry is

Planning Manager

  • >500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for Planning Managers to take into the