Supply Chain Management SCM

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.

Skills and characteristics of a successful global procurement manager

EmanAbouzeid.jpgCall it 'purchasing', 'procurement', 'supply management' or 'sourcing', the role of procurement within organisations is changing significantly. Purchasing departments are, at last, moving from reactive to proactive, responding to management's demand that they add value to an enterprise rather than retain their traditional role as cost centre.

Consequently, the procurement manager of today needs to be a far different type of individual than in previous years. The characteristics and skills sets required are much broader in scope and much more detailed in their execution.

Eman Abouzeid (CSCP, CIPS), a procurement and supply chain professional with global experience, unpacks the skills that global sourcing professionals should master.

Join us at Smart Procurement World for a keynote presentation from CIPS on the skill sets required of the future procurement professional: Artificial Intelligence (AI) and Blockchain are rapidly redefining the traditional role of procurement professionals. Simultaneously, organisations require ever-higher standards of corporate governance and social responsibility.

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.

How to implement supply chain management in the hotel industry

GodfreyOtiato_100.jpgDifferent concepts have been developed to understand how to successfully implement logistics and supply chain management. "In the case of the hotel industry, logistics and supply chain activities must be grouped into tactical, strategic and operational levels", says Godfrey Otiato (MCILT). Taking this view helps to create a more systematic approach by focusing on how implementation will happen from a higher level, then linking this to long-term goals and, finally, seeing how these results will translate in the short-term.

Otiato, founder of Guru Logistics Consultancy, unpacks these logistics and supply chain activity levels in this month's SmartProcurement.

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.

5 pillars - a procurement blueprint for accelerating inclusive growth

Prof_MarcusAmbe.jpgSibongile_Shongwe.jpgThe ambition of creating a developmental state to transform the Apartheid economy has been hamstrung by an inability to implement transformation policies; it is a situation exacerbated by a lack of skills, competencies and capacity; and the patronage of corrupt procurement practices.

Prof. Marcus Ambe, from the University of South Africa's School of Public and Operations Management, in collaboration with Sibongile Shongwe, Director of MtileniMazi Enterprises, unpacks a procurement blueprint to accelerate inclusive growth and socio-economic development, in this month's SmartProcurement.

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?

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.

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.

Procurement predictions for 2018

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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.

Gaining sourcing street cred - Q&A with Salesforce and Oracle's former CPO

 

Balancing_Transformation.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.

Greg sat down with ScoutRFP. In part 2 of the conversation, Greg unpacks three ways companies can work to change sourcing behaviours – and gain street cred in the process.

Smart Procurement World topic highlight: How cross-functional collaboration in the strategic sourcing process can deliver savings beyond expectation, even in a very mature category. Presented by Mike Machell-Cox, Director Indirect Procurement, Sappi Europe.

Small suppliers for big impact: optimising your supply chain in a turbulent economy

 

StuartTownshend.jpgIn our third consecutive quarter of negative growth, it’s becoming all too clear that South Africa is well and truly facing some tough economic times ahead, and businesses are already beginning to suffer.

According to Statistics South Africa, weak manufacturing and trade sectors led the recession, with falls of 3.7% and 5.9% respectively in the period of Q4 2016 and Q1 2017. More worrying is that over the last quarter, the tertiary sector (comprising government, trade, transport, personal services and finance) recorded its first quarter of decline since 2009.

Times are tough and money is tight. And while it can be tempting to put your big plans on hold until the worst has passed, you might be missing a golden opportunity to recession-proof your business by shaking things up in your supply chain and adding more SME suppliers to your database, says Stuart Townshend, Edge Growth Director, in this month’s 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.

Procurement shines brightest on a burning platform

 

GuyStrafford.jpgEconomic woes, political uncertainty and digital disruption might trouble your CEO, but it should delight the CPO. After all, procurement can perform best on a burning platform, says Guy Strafford, Chief Client Officer, Proxima Group.

Changing behaviours in sourcing - Q&A with Salesforce and Oracle's former CPO

 

GregTennyson.jpgCPO of VSP Global Greg Tennyson leads transformative change. He is the former VP and CPO (source-to-settle and expense-to-settle) at Salesforce and Oracle.

Greg sat down with ScoutRFP to discuss sourcing’s ever-evolving relationship with business - he talks culture, Moolah (the spend-it-like-its-yours monster) and how CPOs can work with the pace of change at an organisation to reach sourcing-stakeholder “utopia.”


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