Sourcing Strategy

Municipal materials management may require a counter-intuitive purchasing approach

StephenBauld_100.jpgEnsuring that the right quality of an item is ordered and delivered may seem like a fairly obvious responsibility. However, doing so in practice requires a fairly sophisticated understanding of market conditions and user requirements, which, like many organisations, municipal departments do not possess.

"There is a higher probability of generating measurable savings if municipal purchasing departments play a pro-active role to assist client departments to identify needs before they arise", says government procurement expert Stephen Bauld, in this month's SmartProcurement. Bauld argues that successful municipal materials management may require a counter-intuitive approach towards purchasing.

Good governance + accountability = long-term socio-economic development

DouglasBoateng.jpgLocal government procurement practitioners need to recognise the inextricable link between good governance, accountability and long-term socio-economic development, says Prof. Douglas Boateng.

Procurement in 7 memes

DistractedBoyfriend_small.jpgThey say a picture tells a thousand words. How about a procurement meme?

Okay, millennials. Strap yourselves in, because Hugo Britt, Content Manager at Procurious, is going to attempt to meme. Is meme even a verb? Perhaps not, but that isn't going to stop him.

For older readers who don't really know (or care) what memes are, don't worry - Britt's got you covered. Whether it's Bad Luck Brian, Kermit Sipping Tea, or King Leonidas screaming "SPARTA", Britt will attempt to add a bit of context around the meme before applying a Procurement gripe to each.

Join Britt at Smart Procurement World Gauteng in September, where he'll present procurement's "guide to blockchain technology and how it will change our world". He'll look at early applications of blockchain in supply chain, specifically automotive, freight and logistics.

8 ways to create procurement value

SergeyDovgalenko.jpgProcurement professionals who traditionally measure their effectiveness by means of savings will sooner or later face the following problems: a depletion of supplier resources and a loss in supplier motivation in terms of further co-operation. Suppliers cannot always be the sole source of benefits, patching holes in your company's balance sheet with their funding, says Sergey Dovgalenko (FCIPS), Head of Procurement, Etihad Airways.

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.

Procurement and our KPIs

ShaunStoch.jpgMost of us working in procurement for a large organisation get new and updated Key Performance Indicators (KPIs) every year. Shaun Stoch, Procurement Management at Maersk Line, often finds himself looking at his KPIs and asking the question: "where does this fit into the value chain and do my KPIs actually improve our product offering?

Digging a little deeper into the literature, Stoch found that the consensus seems to be that many organisations are still working with old procurement models and the real value of procurement is not visible to many executives - there remains a disconnect between procurement KPIs and organisational strategy.

However, he told SmartProcurement that this old mindset is slowly changing.

What is the true cost of unethical conduct?

XavierGreyling.jpg'Procurement irregularities' has taken 3rd place on Corruption Watch SA's Corruption Report 2017 (CRW2017). Coming in at 12% of the reported types of corruption, procurement irregularities trails bribery as the most common form of reported corruption (27% of cases).

However, CRW2017 does not define 'procurement irregularities', which caused Xavier Greyling (MCIPS) to question if procurement irregularities do in fact account for only 12% of the reported cases, and, faced with the possibility of a far higher figure - what role does procurement play in what is lost to corruption every day?

Contracts: Paying for what works

SusanDeWitt.jpgAre performance clauses and outcomes-based contracts the answer?

Dr Susan de Witt from the Graduate School of Business at the University of Cape Town unpacks contract performance measurement in this month's SmartProcurement.

New ways needed to procure construction projects in 2018

Stephen_Bauld.jpgManagement methodology in some municipalities is changing for the better, says Stephen Bauld. During 2017, Bauld spent a great deal of my time working on behalf of contractors, raising issues related to construction projects with municipal staff at every level. He has seen a commitment by senior management to make systems better and to listen to industry concerns to make positive changes to the process.

Procurement with purpose: beyond the bottom-line

Patrick_McCarthy.jpgHow can you embrace the notion of procurement with purpose authentically and in ways that are consistent with your core beliefs and ideals? Patrick McCarthy, SVP and GM, SAP Ariba North America, guides the way...

Procurement agility in the age of digitalisation

GilesBreault.jpgHow can your procurement team embrace the age of digitalisation and develop an effective roadmap that ultimately puts you in the driver's seat?The digital enablement field is wide open, with no single right answer on how to proceed.

However, there are ways that can help organisations to plot a way forward. CPOs must define a roadmap for change and align it with enterprise-level digital transformation initiatives, says Giles Breault, Supply Chain, Sourcing and Procurement Executive at The Beyond Group AG.

4 tips to manage supplier risk

RudiKruger_2017.jpgSuppliers can fail you in many ways. Supplying inferior quality goods and services, missing deadlines or data breaches can affect the bottom line and reputation of a business.

However, while risks are ever-present, some are more avoidable than others - including the effects of mistakes and failures by suppliers" says Rudi Kruger, General Manager of LexisNexis Data Services.

Effective governance and controls can give suppliers a competitive edge

MorokePhajane.pngThird-party risk management is currently an important topic for most corporate entities. In order to minimise their risk exposure, corporate entities are carefully scrutinising their third-party suppliers. Moroke Phajane, an admitted attorney and expert in third-party risk management, unpacks how third-party risk management can create a competitive edge, in this month's SmartProcurement.

From compliance to data-driven procurement: are you there yet?

MlulekiNtlemeza.jpgWhile some procurement professionals may be stuck in the rut of policy, procedures, and process compliance, the growth of data has reached levels where "we don't know what we don't know".

When a pilot - entrusted with the safety of all passengers on board - flies through a thick haze of fog without a glimpse of the horizon, in preparation for landing, she relies on the data provided by the aviation navigation system, for a safe descent.

As with aviation navigation, data is the DNA of corporate strategy, from which procurement derives its own objectives. Without proper analysis and understanding of its data, the enterprise - to use the above analogy - will be lost in the fog, writes Mluleki Ntlemeza (MCIPS), e-Procurement specialist at PetroSA, in this month's SmartProcurement.

CPOs - becoming Board-relevant and building stronger relationships with senior execs

BillCrothers.jpgEven though the Procurement function is becoming critical to business success, it all too often remains seen as driving cost savings rather than being worthy of a seat at the Board table in determining and helping to drive broad corporate value.

However, working on the Board of Greensill Capital, a global supply chain finance specialist company, Bill Crothers, a former UK Government Chief Commercial/Procurement Officer, has seen how Chief Procurement Officers (CPOs) can make a dramatically positive contribution to the balance sheet, work with their Treasury, Finance, and IT colleagues, and be much more Board relevant.

In this month's SmartProcurement, Crothers writes about how CPOs can build stronger relationships with senior executives and make a dramatic impact on their businesses.

Whose services are your really procuring?

ToniJackson.jpgThe workforce is fundamentally changing and it's increasingly important that you can access the skills you need when, where and how you need them. But with the increase in corporate usage of external workers comes additional challenges and risks. Toni Jackson, Director of APAC at Fieldglass, an SAP company, in Sydney, unpacks the implications.

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