Supplier Directories

Vendor database optimisation: Are you doing it right?

Schalk_vdMerwe_100.jpgOne of the primary components of any procurement function's strategy is, or should be, to ensure that the company has an optimised vendor base. This is aimed at achieving a more cost effective and high-quality supply chain.

Most companies therefore go through a vendor rationalisation process at some stage and continually review vendor categories to ensure that the selected set of vendors remains the best fit for the respective services or products they deliver to the business.

Optimising the vendor base is normally done by assessing various elements such as pricing, service delivery, contractual terms, internal stakeholder sentiment etc., which are, of course, all very important elements to consider. However, the important elements most often overlooked are the non-contextual ones, says Schalk van der Merwe, Executive Head: Supply Chain Governance at data powered risk solutions provider Inoxico.

Gauteng uplifting SMMEs through procurement

 

MEC_BarbaraCreecy_SPW.jpgRecent studies by Stats SA indicate that the face of poverty in South Africa remains black, female and that of children below the age of 17. Furthermore, more than one in every two SA citizens can be officially classified as poor, said Gauteng Finance MEC Barbara Creecy at the Smart Procurement World conference in Johannesburg.

“[Stats SA’s] Poverty Trends Report shows that by 2015, approximately 33% of Gauteng’s citizens were living in poverty. Although this is lower than most of the country, it is not a cause for celebration. One in three Gautengers go to bed without a meal. The situation was further worsened by the province losing 146 000 jobs during the last financial quarter,” said MEC Creecy.

The most direct and effective route to address these socio-economic challenges is a programme of transformation, modernisation and re-industrialisation. Gauteng’s provincial government is currently implementing such a programme in partnership with the private sector, organised labour and civil society, said MEC Creecy.

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."

CPO website to make government SCM more accessible

 

Parliament.jpgThe Office of the Chief Procurement Officer (OCPO) has launched a website to assist government officials and personnel of state-owned enterprises to create tenders, and to provide guidance to suppliers bidding for tenders.


The website forms part of the OCPO's objective of minimising procurement-related corruption in government while, at the same time, making government's supply chain management (SCM) system more accessible and innovative.

Tips for supply-ready SME businesses

 

TursuisRuiters.jpgFor entrepreneurs who are running a small business that is ready to become a supplier to big corporates, in this month's SmartProcurement, Tursuis Ruiters, Financial Mentor at The Hope Factory, offers useful tips that procurement professionals might want to share with ED suppliers to prepare them to be "Supply Ready".

A commerce network - building a bridge from both sides

 

SydneyHarbourBridge_1930.jpgThe photo alongside of the construction of iconic Sydney Harbour Bridge got James Marland, Vice President of Network Strategy for Ariba, an SAP Company, thinking. Work began on the landmark structure in 1925, and the construction work moved steadily inwards until it finally met in the middle five years later. While you won’t find him viaduct-spotting or waxing lyrical about trusses, Marland saw some striking similarities in the way that a commerce network is created, in this month’s SmartProcurement.

Drivers supporting procurement from black-owned SMMEs outweigh constraints

 

Mark_Frankel.jpgThe on-going sustainable development of black-owned small, medium and micro enterprises (BSMMEs) is imperative to secure the future economic growth of South Africa.


We have seen how past actions have limited what should be a free-market economy and left BSMMEs facing a number of challenges when it comes to getting a business off the ground, growing it and making it sustainable.

In search of a true Business Network

 

holygrail.jpg“He says he’s already got one.”


The above quote comes from Monty Python, when the King asks a French soldier to join the quest for the Holy Grail. The French soldier says he is not interested as he’s already got one. James Marland, Vice President of Network Strategy for Ariba, an SAP Company, sometimes gets a similar reaction when he talks about the business network: “We’ve already got one,” although not usually in a cod-French accent.

View the clip here

This “other solution” often takes the form of a portal, an EDI connection, an industry marketplace, an outsourced scanning solution or some combination. In this month’s SmartProcurement, Marland identifies the ten key characteristics of a business network.

SA's enterprise potential: new book launched by Absa

 

Absa_Access.jpgWith over 12-million South Africans directly relying on them for their livelihood, enterprises play a vital role in the economy and their importance as an engine to drive economic growth, in turn leading to employment creation, must be recognised, says Sisa Ntshona, Head of Absa Enterprise Development, Business Banking Africa, in this month’s SmartProcurement.

Bridging the expectations gap between SMEs and banks to facilitate finance

 

SME_BusinessCase.jpgFinding a solution to the perceived “shortage” of ready finance available to local start-ups, could involve assisting entrepreneurs to better understand the role of money in their businesses, and giving them the means to manage it appropriately. If SMEs have viable operating models in place prior to approaching finance institutions, and can clearly define the innovation and value of their idea, there is a far better likelihood of them securing finance says Shawn Theunissen, head of CSR at Growthpoint Properties and Property Point (Growthpoint Properties’ enterprise development programme), in this month’s SmartProcurement.

Six steps to e-commerce success (Supplier Perspective)

 

RobMihalko.jpgJust as consumers use Facebook, Twitter, and Amazon.com to better communicate, share, and shop, organisations are now making the most of the available on-line networks to more effectively collaborate and interact with their trading partners.


B2B e-commerce continues to gain traction in the marketplace, with an increasing number of organisations taking a closer look at how to leverage it to drive sales and, ultimately, revenue. The potential for significant top- and bottom-line benefits is a compelling reason to adopt B2B e-commerce. Yet, many misperceptions exist and the confusion is causing many organisations to miss out on the exceptional rewards that online channels have the potential to deliver, says Rob Mihalko, who oversees Ariba’s, a SAP company, overall seller marketing initiatives, in this month’s SmartProcurement.

Ramaphosa launches Blackpages supplier development portal

 

CyrilRamaphosa2.jpgThe Shanduka Blackpages enterprise and supplier development portal was launched in May by Shanduka Group Chairman Cyril Ramaphosa.


The online platform links procurement managers to 100% black-owned companies and is a reliable solution for companies that want to bring black businesses into their supply chains.

SME Incubator's procurement workshops a countrywide-hit

ShandukaBU_DbnWorkshop.jpgShanduka Black Umbrellas’ (SBU) regular procurement workshops at its incubators around the country have proven highly beneficial for those looking to become part of a large corporate’s supply chain and for corporates who want to optimise their suppliers in terms of the broad-based scorecard.

 

Three of SBU’s Durban businesses had interviews with Toyota following the KZN procurement workshop, while Eskom and Standard Bank requested all the incubator’s client profiles.

 

Managing supplier relationships through electronic business networks

VanessaBurger.jpg

Business networks have opened the door to a new way of collaborating. Mega-shifts in how technology is delivered, accessed and used have created this new era of sharing knowledge and improved collaboration.  Consequently, more and more companies across the globe are connecting to business networks to manage their trading relationships, Vanessa Burger, Services Director – Africa, for Ariba, an SAP Company, tells SmartProcurement.

Centralised supplier database to drive economic growth

Catherine_Hills.jpgTo increase per capita income and distribute wealth more evenly across the South African population, the economy would have to expand to almost three times the present level, and create up to 11-million new jobs over the next two decades.

These were the remarks in the launch speech of the National Development Plan for South Africa, which contains input from and perspectives of thousands of South Africans and looks at practical steps to achieve a better future for all South Africans by 2030.

To achieve economic growth of that level government procurement openings need to be more readily available to small businesses, which create the most jobs and employ 56% of the South African workforce, Catherine Hills, Global Accounts Partner at Ariba, told SmartProcurement.

Develop suppliers. Develop the economy!

Supply network.jpgThe traditional purchaser would focus on price, cost, quality and performance. However, as far as South Africa Inc. is concerned, there is a very strong requirement to include Supplier Development, Malcolm Farrell, Director of the Supply Chain Network, tells SmartProcurement.

Managing the harm caused by procurement fraud

Reputation management.jpgWith so many headlines appearing in the news of controversial tender irregularities, businesses should focus on protecting themselves against the negative publicity surrounding improper vetting of employees and vendors, Rudi Kruger, General Manager of LexisNexis Risk Management, tells SmartProcurement.

South Africa takes a larger role in global commerce through Ariba

A report compiled by Ariba for SmartProcurement

Deon Mocke_.JPGWhen it comes to global commerce, South Africa is fast becoming a key participant. In 2007, two local companies - TradeWorld and Quadrem, teamed up to create the largest eMarketplace in South Africa. Their aim was to help large multi-nationals and the local suppliers with whom they do business to achieve economic empowerment at a scale previously unheard of.

In 2010, Ariba, Inc., the world’s largest business-to-business commerce network, recognized the strength of the trading network that Quadrem had built and the underlying technologies supporting it, and acquired the company. Why? Because, like an increasing number of foreign investors, it sees tremendous potential in the Southern Hemisphere, says Deon Mocke, Vice President of Ariba Africa.


 

 

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