Supplier Management

How to get buy-in for sustainable procurement

DeFariaLopes_Marais_150.pngBy Bárbara de Faria Lopes, Sustainability Consultant, IQbusiness, and
Christelle Marais, Sustainability Lead, IQbusiness

Financial factors are no longer the only consideration for businesses. Governments, investors, non-governmental organisations (NGOs) and society at large are increasingly holding companies accountable for their social and environmental impact. Organisations, therefore, need to identify and address sustainability risks within their own operations and supply chains. Sustainable supply chains require the implementation of sustainable procurement (SP) practices or the joint consideration of social, environmental and economic factors in an organisation's purchasing behaviour as well as supplier engagement.

The uptake of SP within South Africa and the broader African continent, unfortunately, appears to be lagging behind developed economies. To drive a change in procurement behaviour requires awareness, buy-in and a compelling business case. Here are five principles to achieving this:

Purchasing and supply management: the important difference that you must know

MosesManuel_100.jpgBy Moses Manuel, Lecturer in Business, Legal and Development Studies, and Founder of Zerite Network

Purchasing and supply management is not an entirely new concept to most people. Take a look at the first part, purchasing: we all undertake purchasing, be it data for your mobile phone, food, clothes, etc. Purchasing and supply management is one of those things you know, hence, you do not give it much thought. In business, however, it is another thing. There is a huge difference between doing something on a daily basis and doing it professionally.

Let us look at purchasing and supply management from a professional perspective.

How to diversify your suppliers

Will_Green_100.jpgBy Will Green

The need for greater diversity has finally reached beyond staff and hit the company purse strings. Supply Management takes a look at why you should up your supplier diversity and how to go about it.

Sales trends for 2021: procurement needs to be solutions salespeople too

SueBarret_100.jpg

"One of the sales trends for 2021 is procurement needs to be solutions salespeople too," says By Sue Barrett, Founder and CEO of www.barrett.com.au and www.salesessentials.com

Times are, indeed, changing with the procurement function becoming increasingly important as a conduit, an orchestrator if you will, for the co-creation of value with suppliers and internal stakeholders as well as right down the value chain to end-consumers and back again.

Procurement can no longer rest its case on 'lowest cost', 'cheapest price' or 'supply of goods and services'; it must assume responsibility for the creation and delivery of real value beyond price and general supply.

This sales trend highlights how the skills, knowledge and mindset of procurement professionals are being expanded to include the capabilities of highly-competent solutions sales professionals.

Perfect delivery: the new rules for survival, innovation and growth

SteveBanker_100.jpgBy Steve Banker, Vice President: SCM, ARC Advisory Group

Customer loyalty begins with excellent service and timely delivery. Companies have come under pressure to unify their buying experience across channels, capture orders easily, and deliver them rapidly and accurately.

When it comes to gauging the loyalty of an organisation's customer relationships, the net promoter score (NPS) survey typically represents best practice. The NPS is correlated with revenue growth and calculated based on responses to a single, simple question: how likely is it that you would recommend this company/product/service to a friend or colleague?

Thriving in the next normal: pivoting your SCM operations to growth

Jeff_Stiles_.jpgBy Jeff Stiles, VP, Product Marketing SCM, Oracle

Where are supply chains going today? I had a chance to hear some interesting perspectives on this question at a recent Oracle Live event, where I attended a session that looked at pivoting your SCM operations to growth. In light of recent events, this was a timely discussion, to say the least.

At the risk of stating the obvious, the last six months have been a trying and challenging time for everybody, and especially product companies - those organizations that run supply chains and manufacturing plants. The crisis has been a sea change for them, and they find themselves now at a crossroads.

Innovation is not about what you control, but what you can access: the procurement view

Bertrand_Maltaverne.jpegBy Bertrand Maltaverne

The secret sauce for innovation...

The secret sauce is secret because innovation itself and conditions that foster it are, both, quite complex topics that I will not dare to address in their entirety. However, the fact that innovation constitutes a competitive advantage and is a condition for survival is not a secret; many companies learned it the hard way. Therefore the motto "innovate or die" is, more than ever, a critical one. And, organizations are not "too big to fail." No organization is immune to the VUCA (Volatile, Unpredictable, Complex and Ambiguous) world we live in.

Supplier selection tips: do this, don't do that

Supplier_selection_tips_100.jpgSelecting the perfect contractor is essential to ensure that your department is able to achieve its goals to reach its full potential. One bad choice can spoil an entire operation and disproportionately set back fiscal and business goals. Follow these helpful supplier selection tips to ensure that you/your department do not fall victim to avoidable problems.

Opinion survey: are you tired of receiving sub-standard proposals and tender responses?

Survey_110.jpgHave your say to help suppliers improve.

Recent international research shows that:

• Buyers are increasingly frustrated by the quality of proposals that they receive
• Early engagement between buyers and potential suppliers is becoming increasingly important
• The proposal document is becoming more crucial in the evaluation process

Do you agree with these statements?

SMME Clinic | Financial compliance for small business is the key to support - Session 21

SMME Clinic interviews Annie McWalter, Managing Director of SAICA ED and the Hope Factory, who shares great insight into how the COVID pandemic has shown the importance of compliance for SMMEs.

Living in interesting times: procurement 2020

PartProcure_100.jpegBy Nicolette Emmino

We were not even at the end of Quarter 1 of 2020 when tariff wars seemed to be the least of our problems. Even before the coronavirus started to disrupt supply chains, procurement analysts had identified several things to watch out for and necessary transformations that needed to happen within the procurement world.

Here are a few things procurement professionals should be focussing on within their organisations this year:

5 LEAPs towards successful ESD programmes

ESD_200.jpgInitiating an enterprise and supplier development (ESD) programme is not something to rush into. It is a process that will achieve very little for everyone involved if it is not carefully planned, aligned with coherent business and supply chain strategies, and rolled out to candidates that have true potential.

Lean enterprise acceleration programmes (LEAP) has for more than ten years provided strategic and comprehensive ESD advisory to corporates as well as provided tailor-made support services to small to medium enterprises (SMEs).

LEAP seeks to create lasting impact by observing five main principles. We take a look at the five LEAPs in this month's SmartProcurement.

SMME Clinic | SABS standards during Covid-19 - Session 9

SMME Clinic interviews Dumisani Ngadi, from the South African Bureau Standards (SABS), on how small business can secure SABS accreditation for their products in Covid-19.

For more information email Dumisani Ngadi at dumisani.mngadi@sabs.co.za or contact him on +27 72 267 7955

Coronavirus has exposed just how delicate our procurement eco-system really is

IanThompson_100.jpgDo we need to fundamentally re-imagine what our procurement eco-system looks like? Ian Thompson, Regional Head at Ivalua, thinks so and here is why...

Is COVID-19 a force majeure event?

Tanya_Waksman_100.pngBy Tanya Waksman

Does coronavirus (COVID-19) have any effect on the rights and/or obligations of parties in contractual relationships under South African law? Tanya Waksman, of legal advisory firm, Eversheds Sutherland, considers this question in this month's SmartProcurement.

4 reasons to be excited about the future of supply chain technology

Technology_200.jpgBy Vijay Pandiarajan, Director: Product Management, IBM Sterling

What is next in supply chain systems? There is plenty to be excited about...
First-generation supply chains were good at automating and optimising processes. But they were restricted to functional silos - and that is not enough for what we need in supply chains today.

Advances in supply chain technology are needed if procurement teams are to manage supply chains that are dynamic, responsive and interconnected with ecosystems and external processes. New tech needs the capacity to manage much, much more data (by several orders of magnitude). This, in turn, will make it possible for an individual procurement manager to make sense of entire supply chain ecosystems in real-time.

These demands are driving progress - which is why I am excited about the future of supply chain technology.

Supply chain management toolkit among the support measures launched by SAPICS

COVID-19_125.jpegTo support supply chain professionals and to ensure that they have the resources they need to maintain supply chains during the coronavirus crisis, supply chain management professional body SAPICS has launched a number of special support initiatives to aid the profession. This includes a supply chain management toolkit, helpline and collaboration platform.

Prepare and adjust your supply chain for coronavirus

JamesRice.jpgBy James B. Rice, Deputy Director, MIT Centre for Transportation and Logistics

Developing a clear supply chain response to the coronavirus outbreak is extremely challenging, given the scale of the crisis and the rate at which it is evolving.

The best response, of course, is to be ready before such a crisis hits, since options become more limited when a disruption is in full swing. However, there are measures that can be taken now even if you are not fully prepared. And although its long-term consequences have yet to fully play out, the coronavirus outbreak already provides some lessons about how you can better prepare your company to deal with future large-scale crises.


 

 

Career opportunites

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Are you a Commodity Manager looking for the

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One of South Africa's leading, mining companies is