Supply chains, your customers are watching!

| 0 Comments

 

InformedCustomers.jpgWhat would be the point of business if it were not for customers? With the growth of technology and the rapid exchange of information, consumers are taking advantage of their role in commerce. They are becoming more informed, astute and prudent with their purchasing power now more than ever before. Their particular influence on supply chain was highlighted in the KPMG 2014 Top of Mind survey, which claimed that “customers are demanding end-to-end information. They want to know who produced their products, where they came from and what they are made of”.


The survey included feedback from 469 South African consumer executives, many of whom indicated that corporate strategic priorities were directed towards supply chain and related technology between 2014 and 2015.


What are the risks?


Among other issues relating to supply chain and vendor management, several examples in history highlight how important supplier integrity is to a business. In 2012, an American multinational technology company came under fire for sourcing products from a Chinese supplier that was allegedly operating its plant with safety and environmental violations.


The media and public scrutiny that followed was not good for business with activists threatening to boycott the global brand. As a tech leader, the reputation and success that the brand has been built on faced unnecessary risk that could have been avoided.

 

RudiKruger.jpg“Businesses run the risk of facing similar challenges and vulnerability when working with third party suppliers. Should these suppliers fail to operate legitimately, the repercussions could be a PR and operational disaster” says Rudi Kruger, General Manager at LexisNexis Risk Management.


Business cannot afford to lose public trust. To avoid it, your vendors and suppliers have to be legitimate, compliant and responsible,” added Kruger.


Procurement practices should therefore be facilitated to ensure that they always comply with acts such as the Public Financial Management Act, UK Bribery, Foreign Corrupt Practices Act and Companies Act (King III), and that they remain transparent and credible.


Technology leads the way


The KPMG survey also revealed that companies with “complex upstream supply chains face ongoing challenges related to sourcing, quality and traceability. As companies expand their global network, they are challenged to ensure that their suppliers, even beyond their immediate tiers, are adhering to required standards”.


“Internally vetting suppliers at this scale, can prove to be a timely and difficult process and outsourcing procurement vetting to agencies is often a costly affair,” notes Kruger.


As a result, utilising technological tools to support and streamline this process has never been more relevant.


“Our solution, ProcureCheck, is an online procurement vetting and management tool in South Africa and is designed to put businesses in the driver’s seat,” explained Kruger.


It assists with supplier due diligence as well as global and local legislation requirements and provides you with the information to make informed decisions, which can give businesses the competitive edge.


ProcureCheck helps you:


• Combat corruption by identifying potential connections and ownership of property.

• Identify possible fraudulent activity within vendors and employees with the help of South African Fraud Prevention Services.

• Recognise conflicts of interest within your organisation and potential supply chain partners.

• Investigate negative and positive news on vendors and employees to assist in mitigating reputational risk.

• Highlight business interests of employees within your organisation.

• Identify and prevent fraud schemes within procurement processes.

• Automate irregularity alert reports.

•Generate vendor and staff reports (useful for King III committees).

• Create your own internal vendor list (preferred and blacklisted vendor indicators).

•Import vendor and staff lists.

• Vet vendors (on an adhoc or batch basis).

• With ongoing monitoring.

• Generate detailed conflict of interest reports.
 

Leave a comment


 

 

Career opportunites

Procurement Manager

  • >500 000 Gauteng Permanent Procurement Management
Job purpose We are looking for a Procurement

Fresh Demand Planner/Supply Chain Analyst

  • Analyst Operations, Planning & Inventory Permanent Supply Chain Western Cape
(Jnr - Mid Level), Supply Chain Planning, Based

Groceries Demand Planner/Supply Chain Analyst

  • Analyst Operations, Planning & Inventory Permanent Supply Chain Western Cape
(Mid Level) Supply Chain Planning, Based at Kenilworth,

Category Implementation Manager

  • >500 000 Gauteng Permanent Projects / Category Management Supply Chain
As an Executive Search and Career Consultant specializing

Head of Procurement

  • >500 000 Gauteng Permanent Procurement Management Strategic Sourcing
As an Executive Search and Career Consultant specializing

Regional Sourcing Manager

  • >500 000 Gauteng Permanent Procurement Management Strategic Sourcing
As an Executive Search and Career Consultant specializing

Procurement Director

  • >500 000 KwaZulu Natal Permanent Procurement Management Strategic Sourcing
As an Executive Search and Career Consultant specializing

Procurement Specialist

  • >500 000 Buyer Gauteng Permanent Procurement Officer / Specialist
As an Executive Search and Career Consultant specializing

Senior Sourcing Manager

  • >500 000 Gauteng Permanent Procurement Management Strategic Sourcing Supply Chain
As an Executive Search and Career Consultant specializing

Indirect Sourcing Programme Manager

  • >500 000 Contract Projects / Category Management Strategic Sourcing Western Cape
As an Executive Search and Career Consultant specializing

Deputy Chief Commercial Officer

  • >500 000 Contract Gauteng Procurement Management Supplier / Business Development
As an Executive Search and Career Consultant specializing

GROUP PROCUREMENT MANAGER

  • Gauteng Permanent Procurement Management Supplier / Business Development
Operating out of Johannesburg, this is a key

Tutor and Coordinator

  • Gauteng Operations, Planning & Inventory Permanent Procurement Management Supplier / Business Development
Purpose of the job: To plan, coach, advise

Commodity Manager

  • <500 000 Commodities Gauteng Procurement Management
Are you a Commodity Manager looking for the

Supply Chain Professional

  • <500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Supply Planning

  • <500 000 Gauteng Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer Procurement Consultant
Are you an Industrial Engineer looking to make

Logistics Manager

  • >500 000 Gauteng Logistics & Warehousing Supply Chain
Seeking vibrant industry specific individuals seeking new opportunities

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for an Operations Manager to take into

Supply Chain Systems Administrator

  • >500 000 Gauteng Procurement Management Strategic Sourcing Supply Chain
One of South Africa's leading, mining companies is