Supply Chain Management SCM

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.

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.

COVID-19 vaccines and the supply chain challenges

AmbrishKumar_100.jpgBy Dr Ambrish Kumar, Founder and Group CEO, AAA 2 Innovate Pvt Ltd

The world is waiting for the COVID-19 vaccine. Distributing it globally from its points of production is a gargantuan task. In fact, it is a task some feel should best be left to the expertise of military logistics.

The vaccine is beginning its rollout on the heels of large scale, global logistics and distribution stoppages. Those tasked with its distribution are on the backfoot.

The spread of the virus has grown exponentially in certain regions, compelling lockdowns and an unprecedented hindrance to countless businesses. One of the most affected sectors, since the very beginning and still, is the aviation and air travel sector.

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.

Alexander the Great needed great supply chains

MilitaryLogistics_150.pngPopular history tells us that Napoleon said "an army marches on its stomach".

However, he was not the first military leader to understand that combat is only one part of a successful military campaign.

Alexander the Great's 'greatness' was not owing to his ability to dream up bold moves and cut a dashing figure in the saddle: he was a master of supply chain management and could not have succeeded otherwise.

The sources of future supply chain restlessness

Disruption_120.jpgSupply chain disruptions have continued to grow significantly in recent years, even before the coronavirus (COVID-19) pandemic struck and caused a major impact on the availability of components, goods and services as well as logistics, shipping and sourcing. Research by the Institute for Supply Management shows that (1) common disruptors have direct business impact across all industries and (2) other disruptors are evolving and relevant to a smaller group of industries. Half of chief procurement officers (CPOs) interviewed anticipate these dynamics to intensify in the future.

COVID-19 pandemic: a rocky road to a new business norm

RockyRoad_150.jpgBy Gordon Reid with input from Mieka Cleghorn, SA Managing Director, Transparent

As a semi-retired business executive, and after spending the past twenty plus years working for some of South Africa's leading companies, the COVID-19 lockdown has afforded me valuable time for some serious thinking.

Many businesses will need to change the way they operate to remain afloat. Useful insights and lessons from company closures will undoubtedly surface in time, but for now we should focus on the future and what can be done now to keep our businesses running.

The intention of this article is to stimulate discussion, thought and imagination with a view to developing a roadmap to traverse the rocky road to economic survival post-COVID-19.

Africa's largest virtual conference for supply chain and procurement professionals coming in August

ASCA_125.pngSmartProcurement has joined forces with SAPICS to offer Africa's largest-ever online event for supply chain and procurement professionals.

Africa Supply Chain in Action takes place on 19 and 20 August 2020. It is expected to bring together more than 1 000 supply chain and procurement professionals.

Procurement empowered by cognitive and intelligent applications

Marcel_Vollmer_100.jpgBy Dr Marcell Vollmer, Chief Innovation Officer, Celonis

Across all industries, procurement leaders are seeking significant and measurable productivity gains. New technology, based on machine learning and artificial intelligence, is driving the digital transformation of the procurement function to deliver value, driving supplier innovations, performing risk management, securing a sustainable supply chain and, of course, managing budgets.

The traditional mindset of cost savings is dead

Hemant_Porwal_100.jpgBy Hemant Porwal, Executive Vice President: Supply Chain and Operations, WESCO Distribution

Over time, the concept of measuring savings has evolved to creating a baseline by comparing items under the form, fit and function framework.

Top-quartile procurement teams have taken this further by adopting total cost of ownership (TCO) into their request for proposal (RFP) models, instead of pure price comparisons. A key point is that these TCO criteria measure costs can be principally influenced by procurement teams.

However, this is not enough. We need a more holistic metric which measures cost from the first mile to the last mile and, ultimately, within reach of customers in the last three feet. The metric to use is total cost to serve (TCS).

Agility and sustainable sourcing are SCM's new focus areas

NdabeniBagosi_100.jpgBy Ndabeni Bagosi, Head: Cost and Agility Programme, Total South Africa

Leading and forward-thinking organisations rely on the agility of their supply chains for sustainability. Traditionally, the focus of supply chain has been on compliance and cost cutting. However, increasing competition, changing customer needs and a changing economic environment are challenging organisations to think beyond cost.

Increasingly, chief procurement officers (CPOs) are required to provide solutions on how they can contribute to organisations' agility, safety, cost reduction and environmental compliance (sustainable procurement).

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.

16 tried-and-tested tips on running productive meetings remotely

ProductiveRemoteMeetings_200.jpgBy Michael Healy, Supply Chain Partner

The outbreak of COVID-19 has forced companies to get creative about how they connect and meet with customers and teams.

Working with cloud applications allows us to workshop, design and configure systems remotely. With apps like Zoom and Microsoft Teams, working remotely can be easy and cost effective. But making it a positive and productive experience for everyone joining in does take some planning.

Here is a checklist from Supply Chain Partner to help you get the most out of your remote sessions:

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.

How to partner with SMEs for success

Dollars and cents: what are we really saving?

DiegoDeLaGarza_100.jpgBy Diego De la Garza

It might have started with dollars and cents, but what should procurement really be saving now? It is time to shift the dial.

What is the cure to the side effects of KPIs?

BertrandMaltaverne_100.jpgBy Bertrand Maltaverne

If there is one topic in business literature that has been covered exhaustively, it is key performance indicators (KPIs). But if you're not careful, the indicators you set might inadvertently encourage behaviours that can be dramatically damaging...

Case in point: in 19th-century India, the city of Delhi had a snake problem. A rather large population of cobras slithered the streets with impunity. The British government decided to get rid of the snakes through crowdsourcing. Officials offered a bounty for every dead snake that locals brought in. But something unexpected happened. Soon after the British started to pay for every dead cobra, they realised that local entrepreneurs had begun to breed snakes in order to get paid.

The government cancelled the programme. As a result, the cobra farmers released their worthless snakes into the streets.

It turned out that the British didn't want dead snakes; they just wanted fewer live snakes. By incentivising the wrong thing, they inadvertently doubled their problem.

Abusive compliance practices hurt retailers and their suppliers

KateVitasek_100.jpgVendor compliance programs have become a major roadblock to retail store success. But who is to blame? Retailers and suppliers point that finger at each other. One expert says there is a "state of chaos" with retailer vendor compliance programs for both bricks-and-mortar and online stores.

A Supply Chain Digest Retail-Vendor Benchmark Study does not hold back, asserting, "To state the current business environment is a challenging one for both retailers and manufacturers is putting it mildly." Consultant and author Norman Katz of Katzscan Inc. is more harsh in a stinging critique of retailer vendor compliance practices in his recent Journal of Supply Chain Management, Logistics and Procurement (Vol. 1 - No. 3) article titled "How Abusive Vendor Compliance Programs are Affecting Retail Store Success."

Kate Vitasek, Professor in Supply Chain Management at the University of Tennessee, unpacks the effects of vendor compliance practices used by Retailers.


 

 

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