The five rights mean nothing without competent application



JimMakuwa.jpgSupply chain management is an exercise in managing risk. Supply risks can be found throughout the chain. But how much of that risk rests in the skills of professionals that manage a supply chain? Jim Makuwa argues that skilled professionals are the differentiator in great supply chains, in this month’s SmartProcurement.

Supply chain management prescribes that there are five fundamental rights under which transactions in this field, procurement in particular, are executed.

In layman’s terms, the Five Rights are:

The right Quality
in the right Quantity
at the right Price
at the right Place
at the right Time

It is also a criterion against which a procurement function is measured; an acid test of whether it makes meaningful contributions to an organisation.

The true meaning of these rights differs from industry to industry. However, perhaps owed to general prescription, a blanked meaning has crept over the Five Rights throughout all spheres of industry, one that would call the Five Rights a mere basic means to an end.

This is a view that impairs the value that can be derived from an efficient supply chain. The ‘right’ individual makes the Five Rights come to fruition and makes a difference between the success and failure of a supply chain.

The right individual, therefore, is the differentiator that makes the most important value proposition to any organisation’s supply chain; that removes elements of risk from our supply chain.

Who is this individual then, a super hero maybe?

The adage goes that failing to plan is planning to fail. Applied to skilled staff, it means that organisations that fail to identify the right individuals are bound to obtain mediocre, moderate or unimpressive results. Conversely, organisations that identify the right combination of skills in an individual stand a better chance of making it in the real world.

Where organisations strive to be on the leading edge of commerce, the right differentiator is a blessing. A differentiator is someone who is competent – the sum of their knowledge, skill and attributes effectively and efficiently meets the needs of an organisation.

Competence is the ability to do a task effectively. It has also been defined as an area or areas of personal capability that enable employees to successfully perform their jobs by achieving outcomes or successfully performing tasks.

Therefore, it is imperative that organisations strive to obtain the right incumbents for employment, or adopt strategies such as job training and coaching to skill their existing workforce.

Furthermore, individuals should try to reciprocate the gesture by ensuring that they adopt a workable personal development plan that would make them become better and make a difference in the success of their organisations.

Depending on the scope, complexity, value and risky nature of the job a mismatch maybe risky, but will depend on the risk appetite of the organisation. For instance because BEE rating most organisation may accept individuals with a defined criteria so as to boost their Employment Equity ratings, this could be fine depending on the risk that a company is willing to take.

How much risk are you willing to take and or doing nothing about it if you are employing a mismatch?


Leave a comment

SmartProcurement Newsletter

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
* Country:
* Public / Private:



Career opportunites

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
R400 000 - R500 000 per annum.Location: Cape ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Consultant
R650 000 - R750 000 per annumLocation: Cape ...More

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R 800 000 - R 900 000 ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Salary: R 600 000 - R 650 000 ...More

Supply Chain Analyst

  • <500 000 Analyst Gauteng Permanent Supply Chain
R600 000 - R700 000 per annum Location: ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Management
R850 000 - R1 000 000 per annumLocation: ...More

Commodity Manager

  • <500 000 Commodities Permanent Procurement Management Western Cape
R700 000 - R850 000 per annum,Location: Western ...More

National Supply Chain Manager

  • <500 000 Across borders Permanent Procurement Management Supply Chain
R750 000 - R1 000 000 per annum,Location: ...More

Industrial Engineer

  • <500 000 >500 000 Industrial Engineer Operations, Planning & Inventory Permanent Western Cape
R450 000- R500 000 CTC per annum,Location: Western ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Management
Category: Procurement,Salary: R700 000 - R800 000 per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Category: Consulting,Salary: R750 000 - R800 000 CTC ...More

Logistics Manager

  • <500 000 Across borders Logistics & Warehousing Permanent Procurement Management
Category: Logistics,Salary: R900 000 - R1 000 000 ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Area of Specialisation: Planning,Salary: R500 000 - R650 ...More

Industrial Engineer

  • <500 000 Analyst Gauteng Industrial Engineer Permanent
R800 000 - R850 000 CTC per annum.Location: ...More

Security Manager

  • <500 000 Analyst Gauteng Permanent Procurement Officer / Specialist
(Total Cost to Company R350K - R550K).This is ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R650k - R750k) excluding

Commodity Manager Raw Materials

  • <500 000 Commodities Gauteng Permanent Strategic Sourcing
(Total Cost to Company R980k - R800k) excluding ...More

Commodity Manager Logistics

  • <500 000 Commodities Gauteng Logistics & Warehousing Permanent
(Total Cost to Company R1mil - R900k).Industry: Engineering

Procurement Consultant

  • <500 000 Gauteng Permanent Procurement Consultant Procurement Management
(Total Cost To Company 550K - 450K) includes ...More

Commodity Manager MRO &CAPEX

  • <500 000 Commodities Gauteng Permanent Projects / Category Management
(Total Cost To Company 900k - 750k) includes ...More