Supplier Partnerships

Harness procurement for socio-economic growth in sub-Saharan Africa

APEDS_honoured_guests.jpg

From left to right: Goodall Gondwe, Minister in Finance, Economic Development & Planning, Malawi; Margaret Mwanakatwe, Minister in Finance, Zambia; Mizinga Melu, CEO of Barclays Bank, Zambia.

Delegates at the inaugural Africa Procurement & Enterprise Development Summit (APEDS) threw their weight behind a drive to ensure that the public and private sectors harness procurement for socio-economic growth in sub-Saharan Africa.

By adopting a resolution and key actions at the summit, delegates acknowledged the urgent need for accelerated leadership and focus on developing sustainable SMMEs through public-procurement reforms and private-sector participation.

The resolution ties in with the summit's goal to bring together seasoned professionals, dedicated to the changing nature of the procurement ecosystem in Africa to discuss how procurement can drive socio-economic growth, sustainable procurement, localisation, SME development and other topics distinctive to procurement in Africa.

Love procurement - because it can impact society and the environment

Join us at Smart Procurement World 2019, where one of our conference themes will be "Walk the talk: High-impact procurement"

RobertFreeman_100.jpgProcurement work is much more than just securing the right products, in the right quantity and quality at the right place... Let's think wider, more holistically, writes Robert Freeman, a procurement and supply chain expert at Future Procurement, a procurement coaching and consultancy organisation.

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.

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...

Instead of wasting time, collaborate with key suppliers for continuous improvement

ElainePorteous.jpgWhy do we need to develop collaborative relationships with our key suppliers? Because we want to (a) reduce costs, (b) make process improvements, and (c) encourage innovation in products/services.

"The first two both sound quite straightforward, but to achieve innovation takes a bit more effort. We need to be open and transparent with those suppliers and focus on building trust", says Elaine Porteous in this month's SmartProcurement.

Part 2 - Enabling small supplier growth in SA vs 75% of SME Credit Applications Rejected

CorneliaOlivier.jpgResearch indicates a strong link between owner-manager education, access to finance and small business growth

The 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 part 2, Olivier discusses how business growth links with education and formal credit extension to small businesses.

Enabling of small supplier growth in SA - formal credit extension and education

CorneliaOlivier.jpgThe growth of small businesses in South Africa is severely affected by the institutional environment in which they operate. In a series of three articles, Cornelia Olivier, Head of Sourcing: Corporate Services, Absa, unpacks two formal institutional enablers necessary for small suppliers to grow. Olivier provides some insight as to why as many as 75% of small, micro and medium enterprises (SMMEs) in South Africa fail, despite a seemingly nurturing South African institutional environment.

In Part 1, she discusses the small business landscape in South Africa.

Can Enterprise and Supplier Development equal cash efficiency?

StuartTownshend.jpgIn this month's SmartProcurement, Stuart Townshend, Edge Growth Director, explores how you can use your Enterprise and Supplier Development (ESD) initiative to be cash efficient, and become self-sustainable - yet making a positive impact where it is needed most.

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.

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.

Pushing the "easy button" on self-service sourcing - Q&A with Salesforce and Oracle's former CPO

GregTennyson.jpgGreg Tennyson is the CPO of VSP Global, where he leads transformative change. He is the former VP and CPO (source-to-settle and expense-to-settle) at Salesforce and Oracle.
In part 3 of the conversation with ScoutRFP, Greg talks tech and "self-service sourcing" in the final segment on changing sourcing behaviours.

What is affecting procurement? Where is the profession going?

DuncanBrock_SPW.jpgThere's a lot going on. The changing and challenging times we currently face are probably greater than they've ever been. What is the implication for procurement? What do we need to keep abreast of and continually work on?

Duncan Brock, Director of the Chartered Institute of Procurement and Supply, offered his insights during his opening address at the SmartProcurement World Gauteng conference in September.

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.

Set suppliers up for success and mitigate preferential procurement risks

 

Even if organisations are not doing business with organs of state, they may well form part of the supply chain of organisations to which the PPPFA directly applies. Therefore, they need to be aware of its scope and provisions.

Corporate businesses are actively seeking and supporting black-owned and black woman-owned Exempted Micro Enterprises (EMEs) and Qualifying Small Enterprises (QSEs) as suppliers to meet the stringent Preferential Procurement Policy Framework Act (PPPFA) regulations.

If successfully implemented, this approach could stimulate the desired growth and economic transformation as the B-BBEE Act intended from the start, by providing greater opportunities for small, medium and micro enterprises (SMMEs), particularly those owned by historically disadvantaged South Africans (HDSAs).

“However, while this is positive, merely complying with the PPPFA is not going to guarantee the success of SMMEs: there are factors outside the control of regulations and policies that need out-of-the-box solution,” Terence Gregory, CEO of Ecsponent Limited, told SmartProcurement.

Turning supplier information into procurement insight

 

RudiKruger_2017.jpgDecisions and consequences go hand-in-hand. This is why having adequate, relevant information at your fingertips is a critical aspect of any decision-making process - more so when these decisions affect the operation of business and company reputation.

In procurement, the optimal goal is to manage risks and costs within a company, making it an imperative department of business. Businesses spend a significant amount of time vetting potential suppliers before embarking on a partnership, and pertinent data provides them with the right tools to make informed decisions with information that is easily interpreted by management.

However, the vetting system should not end when an agreement is reached between a business and its supplier. Intensive research and vetting on future and current suppliers should be a continual safety requirement to ensure all procurement legislation is adhered to, says Rudi Kruger, General Manager of Risk Solutions at LexisNexis Data Services, in this month’s SmartProcurement.

How can procurement prepare SMEs to engage with corporates?

 

ElmarieGoosen-HS.jpg“They won’t even talk to me, now” David said with a sigh, and to punctuate his mood, spread his hands on the desk in front of him in resignation.

David is a small supplier that was selected to participate in a corporate enterprise supplier development (ESD) programme. Following the completion of the 12-month contract, he was replaced by a subsequent beneficiary of the programme. David has been trying to secure a further contract with the organisation (and with other organisations), but has no idea how to engage with his prospective clients, subsequent to the ESD initiative.

It is a situation familiar to Elmarie Goosen, owner and founder of On Purpose, an organisation that provides training to SMEs to complement supplier development programmes – to prepare SMEs to engage with corporate procurement. She unpacks what procurement can do to help SMEs, in this month’s SmartProcurement.


 

 

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