SRM Supplier Relationship Management

Optimising value with a win-win supply chain

StevenBowen_200.jpgSupply chain partners that collaborate drive continuous improvement and innovation. But getting there takes a new approach, writes Steven Bowen and Kate Vitasek.

Part 3 - Does tertiary education kill the drive to start a small supplier?

CorneliaOlivier.jpgThe growth of small businesses in South Africa is severely affected by the institutional environment in which they operate. In this series of articles, Cornelia Olivier, Head of Sourcing: Corporate Services, Absa, looks at South Africa's institutional environment.

In the final part of the series, Olivier tells SmartProcurement how extending formal credit to household enterprises in South Africa supports a proportionate growth in the number of formally registered small businesses, but she is concerned that the country's education system may be cutting down our entrepreneurial ambitions...

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.

Procurement: Are you getting the most out of your supply base?

KristianOMeara.jpgWhen it comes to choosing suppliers, some procurement teams are losing sight of what matters most. Instead of focussing on the long-term, strategic value of a relationship, many often get caught up in the transactional aspects of signing a supplier, such as pricing, contracts and negotiations. They get so wrapped up in the details around how much the supply costs, the terms of agreement and product specifications, that they neglect to think about the overall value the supplier can bring to the organization, by helping them achieve their unique business goals, says Kristian O'Meara, senior vice president of value engineering at BravoSolution.

4 procurement vetting pitfalls to avoid

 

RudiKruger_2017.jpgMistakes in business come with the territory, but those made in procurement ought to be considered among the most detrimental to the success of an operation. Common procurement related risks include supplier issues such as delivery delays, increases in demand, quality problems and fraud. These issues are often the result of mistakes made in the procurement vetting process, Rudi Kruger, general manager of Risk Solutions at LexisNexis Data Services, told SmartProcurement.

6 Steps to improve buyer-supplier relationships

 

Sinbl_Hawro_Yakoob.jpgIn supply chain literature, as well as in business environments, supplier relationship management (SRM) and buyer-supplier relationships have multiple definitions, shapes and extensions, owed to the fact that the determinants and perceptions of these fields have evolved over time. With increasing globalisation, and economic and political turmoil, stable and focused SRM is more important than ever.

Sinbl Hawro Yakoob, responsible for handling bottleneck products in the Critical Parts Management Department at Mercedes-Benz in Maastricht, the Netherlands, describes the benefits, key approaches and techniques that enhance buyer-supplier relationships, in this month’s SmartProcurement.

Why "free help" with buying decisions costs more

 

Bruce Macfarlane.pngAs consumers, we’re wary of so-called “free” products and services as there’s always a hidden cost. Why, then, are procurement teams willing to accept free help with supplier selection? Asks Procurious’ Bruce Macfarlane, founder of Kansoly.

Is SA's public procurement mature enough to grow the country's SMMES?

Mmatshepo_Rasebopye.jpgIt is not surprising that today many believe that public sector supply chain management is a new thing and that its advent has brought about challenges. While it is true that the world of supply chain management has evolved a great deal, 1994 was not a quantum leap that brought about the new South African procurement regime; procurement has always been there and we have been either personally or business-wise subconsciously practising it. And it has always experienced challenges.

But has procurement matured? Asks Mmatshepo Rasebopye, lecturer, facilitator and practitioner in public sector supply chain management, in this month’s SmartProcurement.

Overpricing is where government's real leakage sits, says Treasury's Kenneth Brown


Kenneth_Brown.jpgIt is South Africa’s equivalent to the proverbial $640 Pentagon toilet seat — a paper binding machine that the government buys from its suppliers for the rand equivalent of almost $2,000, about 13 times what it should cost.

Chief Procurement Officer Kenneth Brown cited the binding machine as an example of the massive waste that means as much as 40% of the government’s R600-billion budget for goods and services is being consumed by inflated prices from suppliers, and by fraud.

Addressing this would mean that "without adding a cent, the government can increase its output by 30%-40%," he says. "We could be building more roads, more schools without even adding more money to the current budget."

Miss South Africa opens ED Expo at Smart Procurement World 2016


MissSA_small.jpg
From left to right: SmartProcurement's Debbie Tagg, Miss SA Ntandoyenkosi Kunene, Absa ED's Thabo Makama

Delegates, SMMEs and visitors were in for a surprise when the current Miss South Africa Ntandoyenkosi Kunene cut the ribbon and formally opened the ED Expo at the end of the conference’s first day.

The second session of the second day at the conference saw a panel discussion about practical ways that you can show to tangible value to the business from a procurement perspective.

Creating supply chain value, not compliance, drives ESD success

 

Wybrand2.jpgThe developmental nature of ‘transformation’ becomes a complex process when we consider the overwhelming commitment within supply chains to receiving high-level quality, consistent delivery and cost effectiveness.

Such a commitment leads organisations to carefully evaluate the risks versus the benefits when implementing their ESD strategies. However, only from the vantage of a holistic overview will organisations realise that it is the ultimate goal of participation around value creation, and not compliance, that will empower ESD initiatives and emerging suppliers alike, writes Wybrand Ganzevoort, Managing Director of Collection Value Creations.

Visitors and exhibitors flock to the Smart Procurement World conference

 

FirstPic.jpgAs the second day of Smart Procurement World conference unfolds, more than 1000 visitors have come through to equip themselves with knowledge about procurement, supply chain, enterprise development and how to support Small, Medium and Micro Enterprises (SMME).

“Google can give you so much, but by attending this conference, I am hoping to find relevant suppliers, particularly black-owned female companies. We want our company to be in line with the B-BEEE Codes and thank goodness for this platform where one can source active and relevant suppliers,” said Tamsyn Louw, procurement professional attending the conference.

10th Smart Procurement World Indaba underway

 

SPW_GP2016.jpgAs Smart Procurement World marks its 10th anniversary, the Gauteng conference underway at Gallagher Convention Centre has drawn on its opening morning more than 1 000 delegates, speakers and exhibitors.

The conference kicked off with some entertainment from the famous puppet comedian, Chester Missing highlighting side-splitting commentary on South African current affairs.

Join us on tomorrow FREE to meet all the SMME suppliers and network with verified, black-owned businesses.

Brexit - 28%of UK retailers considering sourcing from different countries

 

Brexit_.jpgAlmost a third of UK retailers are considering changing suppliers and 28% are thinking about sourcing from different countries following Brexit, according to a report.

SA 42nd for global supply chain resilience

 

SA-flag.pngMeasured according to different dimensions of supply chain risk, South Africa was ranked 42nd out of 130 measured countries and territories in 2016.

Insurer FM Global's Resilience Index ranks countries most and least exposed to different dimensions of supply chain risk, having measured their resilience to supply chain disruptions.

The survey data examines nine key drivers of supply chain risk and groups into three categories: supply chain, risk quality and economic factors.

Absa aims to raise more than a R1-billion to support SMEs

 

Thumbnail image for Thumbnail image for KeaobakaMahuma.jpgAbsa aims to raise more than a billion rand to support emerging small and medium enterprises (SMEs) in South Africa, and later across various markets where it has operations.

This is part of the bank’s ‘Shared Growth’ initiative announced earlier in July 2016, through which the bank aims to use its assets and resources to grow and develop the societies where it operates while growing its business.

According to KeaObaka Mahuma, Head of Enterprise and Supply Chain Development at Barclays Africa, the funding will be raised from a number of sources, including the bank’s own balance sheet. The fund will predominantly target existing SMEs linked to the supply chains of private and public sector corporates.


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