When processing an invoice costs more than the purchase... P-Card is your answer

IanHendry2.jpgIf you’re spending 80% of your effort processing purchase orders for 20% of your spend, it may be time to change tactics.

You can deliver real savings by diverting low-value, high-volume transactions through a Purchasing Card or P-Card, ideal for companies that want complete visibility and control of their spend, and also need to streamline their purchasing processes, says Ian Hendry, Corporate Card Product Manager at Nedbank Corporate Card.

6 Ways to attract and retain procurement talent


procurer.jpgProcurement job openings are on the rise and, as organisations squabble over the best talent, it is important to make sure you are doing the right things to attract the crowd you want!

Recent studies revealed that the number of advertised procurement and supply chain roles increase by 22% each year, demonstrating a huge demand for talent in the industry.

As more people consider making the move into a procurement role, it is important for organisations to find ways to attract the best possible employees.

Adam Maidment, of procurement recruitment specialist Portfolio Procurement, offers six innovative methods to help you to attract, and then retain, the top talent out there.

Overpricing is where government's real leakage sits, says Treasury's Kenneth Brown

Kenneth_Brown.jpgIt is South Africa’s equivalent to the proverbial $640 Pentagon toilet seat — a paper binding machine that the government buys from its suppliers for the rand equivalent of almost $2,000, about 13 times what it should cost.

Chief Procurement Officer Kenneth Brown cited the binding machine as an example of the massive waste that means as much as 40% of the government’s R600-billion budget for goods and services is being consumed by inflated prices from suppliers, and by fraud.

Addressing this would mean that "without adding a cent, the government can increase its output by 30%-40%," he says. "We could be building more roads, more schools without even adding more money to the current budget."

Leadership profile: Mbulelo Babalo Gingcana


MbuleloGingcana.jpgThis month SmartProcurement profiles Mbulelo Babalo Gingcana, from PRASA

Full name: Mbulelo Babalo Gingcana

PositionActing Chief Procurement Officer

Your organisation’s procurement expenditureR20-billion

Who does P & SM report to: Group Chief Executive Officer

Cost-cutting drive has pitted Treasury against government departments


Ralph_Mathekga_.jpgTreasury’s cost-cutting drive has pitted it against other government departments.

Chief Procurement Officer Kenneth Brown has drawn criticism from politicians who are unhappy with his investigations of procurement, said Ralph Mathekga, a political analyst at the Johannesburg-based research group, the Mapungubwe Institute of Strategic Reflection.

In September the Treasury said it rejected a request from Home Affairs Minister Malusi Gigaba for his staff to fly in business-class seats and it turned down appeals from state power utility Eskom for company credit cards.

Open tender process shines light on procurement


tenders.jpgThe Gauteng provincial government (GPG) hosted its first open tender seminar showcasing the progress the province has made in rolling out its open tender project over the past two years. The event was also aimed at encouraging other provincial governments and municipalities to adopt the process.

 “We took the decision in 2014 that it was imperative to find ways to restore confidence in the public procurement process,” said finance MEC Barbara Creecy, who was the programme director for the day.

It is vital that citizens see how their money is being spent, said finance minister Pravin Gordhan, delivering the keynote speech at the seminar.

"We need to ensure that we get value for money from the taxes of the public and the borrowings we make on that money. I congratulate GPG on its determination to make procurement more transparent. The greater the spotlight that shines on procurement, the better.”

Universities fail to support supply chain management


DSC_31721.jpgUniversities need to do more to understand the changing business environment to produce graduates that will best serve in the supply chain industry.

Many graduates are not making a valuable contribution to the industry because of a lack of proper practical integration by universities, said Prof. Johan Du Plessis, Managing Director of Logistics International and Adjunct Professor at the universities of Johannesburg and Unisa.

SA must partner with China to drive ESD through industry


Publiclecture1.jpgChina is an economic partner that can drive enterprise and supplier development (ESD) in South Africa and the rest of the continent.

A significant export, trade and development partner to Africa, China brings, particularly to South Africa, a host of industrial innovations, which if adapted for the local environment can help with various productivity and performance improvements, plus competitive advantage in the public and business sectors, said Prof Douglas Boateng, CEO of PanAvest International & Partners, at a public lecture in October.

eProcurement is actually about people


Thumbnail image for Pumezo1.jpgThe Council of the European Union (EU) placed a renewed focus on public e-Procurement when it adopted directives for the reform of public procurement in February 2014.

Globally, governments have been pursuing initiatives to affect good governance and the “smart expenditure” of limited funds. They have pursued the implementation of a more effective procurement system and, in many cases, an electronic procurement system.

However, one can become so enamoured of the technology that one forgets what it is all about: it is about people, says Pumezo Gulwa, Director of the eCommerce Centre in the Office of the Chief Procurement Office, sharing one of the lessons National Treasury learned in implementing eProcurement.

Drones delivering blood for transfusions: Supply Chain Innovation


drones_.jpgA drone service delivering blood for transfusions has been launched in Rwanda.

The drones are expected to make between 50 and 150 life-saving deliveries each day to far-flung and inaccessible clinics across the western half of the country. Excessive blood loss during childbirth is the leading cause of death in pregnant women in Rwanda.

Zipline, the company behind the technology, said it could complete a delivery in around 30 minutes after receiving an order via a call or text message.

PMI drops by 2.6 points


Graph.jpgThe seasonally adjusted Barclays Purchasing Managers’ Index (PMI) fell by 2.6 index points to 45.9 in October from a downwardly revised 48.5 points in September.

The current level is at its worst since January and well below the neutral 50-point mark, which suggests that the manufacturing sector experienced a lacklustre start to Q4 2016.

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