Service Outsourcing

Don't treat your employees like suppliers

KateVitasek_100.jpgThe war for talent is 20 years strong and has changed the way companies recruit and retain talented employees. While great strides have been made in how companies treat employees, many are still in the dark ages when it comes to how they treat their suppliers.

Just how backwards? Well, what would happen if employees were treated like suppliers are every day? This is the question posed by Tennessee University Professor in Supply Chain Management, Kate Vitasek.

6 steps to optimise your procurement workforce

DougLeeby_100.jpgTo become more agile, organisations are re-evaluating their workforce strategies. Although strategists often talk about 'total workforce management', what their business functions - procurement included - need most is something much simpler: total workforce optimisation (TWO).

For most business functions, human capital is the most important asset and its largest single operating expense. It is also a constant concern for executives who fear they do not have, and cannot acquire, the right mix of top-tier talent to compete and succeed, says Doug Leeby, CEO of Beeline, which provides software solutions for sourcing and managing the extended workforce.

Join us at Smart Procurement World's Gauteng Indaba on 18 & 19 September where our panel will discuss how you attract and retain great people to work in a public sector procurement department.

Logistics: an opportunity for competitive advantage

TafaraSvosve.jpg"What business strategy is all about is, in a word, competitive advantage. The sole purpose of strategic planning is to enable a company to gain, as efficiently as possible, a sustainable edge over its competitors. Corporate strategy thus implies an attempt to alter a company's strength relative to that of its competitors in the most efficient way" (Kenichi Ohmae, 1982).

Recessionary markets and increasingly fierce global competition are two of the main challenges facing organisations today in their quest to gain and sustain competitive advantage. However, providing a level of service that stands above the rest can rarely be achieved if a supplier fails to focus on its logistics strategy, argues Tafara Svosve (MSc Supply Chain Management; CMILT). A new management approach that recognises and locates logistics in its rightful place on a strategic platform (rather than merely a support activity) is required if organisations are to achieve and sustain competitive advantage, writes Svosve in this month's SmartProcurement.

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.

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.

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.

Influence of procurement departments on marketers

 

JohannaMcDowell.jpgAgencies working – or hoping to work – on major corporate accounts in the advertising, marketing and communications industry can no longer ignore or misunderstand procurement departments and their importance in winning both government and corporate clients.

Johanna McDowell, Independent Agency Search & Selection Company (IAS) managing director, warns that the B-BBEE Amended Codes of Good Practice released by the Minister of Trade and Industry in mid 2016 are designed to ensure that procurement is taken seriously by companies that intend to survive, in this month’s SmartProcurement.

What makes SA such a popular outsourced destination?

 

lerato.jpgUnder increasing pressures to cut costs and achieve efficiencies in the current global macroeconomic situation, organisations look for destinations that are not only cost-effective, but can also provide quality services especially in terms of high-end processes. In this regard, South Africa has, to a large extent, been able to establish its offshoring mettle; a number of European, US and Australian companies have started offshoring complex processes to South Africa.

According to current estimates from Business Process Enabling South Africa (BPESA) - the BPO industry association in South Africa, the South African BPM sector employs 225 000 people and contributes more than R50-billion to the national annual GDP. The country accounts for 1% of the global business process and information technology outsourcing market.

How has South Africa established itself as the next emerging offshoring hub?

Lerato Sithole, Director of Supply Chain Management: Business-Process-as-a-Service for Deloitte, discusses the factors that are making South Africa a popular offshoring destination, in this month’s SmartProcurement.

Market consolidation "key trend in procurement outsourcing"

 

MarketConsolidation.pngMarket consolidation and the inclusion of extra services will be among the most significant trends driving the global procurement outsourcing market, according to research.


Market research company Technavio analysed emerging trends to find the biggest factors that will influence the sector up to 2019.

4 risk management strategies to ensure supply chain continuity

 

JimMakuwa.jpgA prudent supply chain professional knows that each transaction is worth its value or the negative impact of it going wrong and has to be treated as such.


High-value transactions need scrutiny commensurate with the risk that the organisation may be exposed to if something goes wrong. In other instances the transaction value may be intrinsic, but the effect may be devastating and it is for these reasons that one has a backup plan.


“It boils down to being inquisitive. Considering that risk is prevalent in supply chains, ‘What if’ can help prevent a fatal judgement error,” says Jim Makuwa, a tutor for Commerce Edge Academy, in this month's SmartProcurement.

On-demand strategic sourcing and category management services

 

Chain.jpgAs sourcing becomes increasingly responsible for supplier relationship and contract management, personnel are often stretched too thin across multiple categories and suppliers to effectively manage expenditure. Furthermore, headcount within procurement groups typically grows at a rate insufficient to meet those increasing demands.


Utilising the internal procurement organisation in collaboration with third-party support can lead to more innovative solutions, new technologies, optimised supply chain strategies and improved category management.

In 5 Days 2000 Procurement Professionals will meet to network, learn and do business!

 

LoyioGola.jpgWith only a few days to go, 3000 attendees have confirmed – Smart Procurement World, Africa’s largest supply chain indaba, kicks off on Tuesday, 9 September.


More than 110 speakers will share their procurement and supply chain insights with delegates in 6 different conference streams.


Hear from supply chain heads from Absa, Coca-Cola, Anglo American Platinum, Sasol and Transnet. Technology enablers from SAP and Oracle will inform the technology panel discussion.

Declining SMME index indicates narrowing entrepreneurial supply base

 

Closed.jpgThe Absa SMME index declined during Q1 2014, with a total quarterly decrease of 2.2% and a yearly decrease of 3.8%. The index declined to a two-year low in Q4 2013 (from 95.6 to 93.4).


Although South Africa has not yet entered a recession, the overall index clearly reflects slower growth over the last few years.

2014 Trends in South African logistics

 

Logistics.jpgThe CSIR’s 10th Annual State of Logistics Survey for South Africa¹, released in May 2014, highlights progress made and areas for improvement in South African logistics. The survey’s results mirror Tech-Pro’s experiences in this increasingly specialised area of supply chain management, Tech-Pro tells SmartProcurement.

SA Logistics must make bold steps to drive costs down


Increased fuel price still biggest cost driver

 

10StateOfLogistics.jpgRising costs and the global economic situation spell out increased competition and tighter margins in the logistics industry. Driving down the cost of logistics and making South Africa more competitive will require no less than bold steps forward, finds the 10th State of Logistics Survey.


Published by the Council for Scientific and Industrial Research (CSIR) in collaboration with Imperial Logistics and Stellenbosch University, the survey reports that South African logistics has moved beyond survival to an optimised mode, where costs, inventories and lead times have been minimised within individual supply chain functions.

Supplier cash flow vs Corporate promises

 

SiphoPilime.jpgMost inexperienced, small suppliers are so eager to supply that they hardly pay attention to the words ‘payment terms’. Yet the timing between cash outflows (as a business extends its service or sells a product) and inflows (as it receives payment for the said service or product) is the single most important factor in business growth, success and sustainability.


Considering that articles and research papers have proven that a lack of cash flow is one of the significant causes of the demise of small businesses worldwide, Sipho Pilime, The Hope Factory business mentor wonders if suppliers and buyers are willing to put payment terms under the microscope and admit that both sides have responsibilities in resolving the early-payment-saga, in this month’s SmartProcurement.


 

 

Career opportunites

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