Blockchain's impact on procurement and procurement professionals

Michael_Shaw_Blockchain.jpg

Is your procurement team ready for Blockchain? Michael Shaw, Chairperson of the American Council of Sourcing and Procurement Executives, explains in this month's SmartProcurement, that Blockchain - more commonly referred to as the Internet of Value, or Internet of Trust - will mature in five to seven years.

Procurement is about to get smarter, faster and more efficient

 

Cognitive_procurement.jpgA ‘cognitive procurement’ solution is set to redefine the source-to-settle process.

The solution delivers intelligence from procurement data - together with predictive insights from unstructured information - to help make decisions in supplier management, contracts and sourcing activities.

Supplier transformation initiative in engineering and manufacturing to be introduced

 

manufacturing_engineering_support.jpgA transformation initiative for small businesses in engineering and manufacturing, the Empowered Engineering and Manufacturing Initiative (EEMI), will be launched in September.

The initiative is a collaboration between Smart Procurement World, the Absa Enterprise and Supplier Development Expo and the Steel and Engineering Industries Federation of Southern Africa (SEIFSA).

The initiative is positioned as a platform for industry players to share opportunities and challenges for small and medium empowered organisations, and drive enterprise and supplier development (ESD) partnerships (funding, training, mentoring and support) and other important focus areas in this sector.

9 success factors for implementing a procurement transformation project

 

Implement_procurement_transformation.jpgMore South African organisations are starting to recognise the value that procurement transformation initiatives bring to the bottom line. Successful procurement transformation projects reposition the source-to-pay process for success, across the entire organisation. The entire source-to-pay process is made efficient and highly collaborative, providing organisations with a competitive advantage.

Procurement transformation can be defined as a process - with an element of flexibility - in which an organisation’s capability and procurement behaviour is altered to attain desired results (such as the achievement of maximum value through the procurement function) and attain long-term sustainability.

Supply Chain Partner, a specialist supply chain service provider, discusses 9 critical success factors (or pitfalls if not considered…) that can make or break your procurement transformation success, in this month’s SmartProcurement.

What is procurement's future in the 4th Industrial Revolution?

 

Mluleki Ntlemeza.jpgThe fourth Industrial Revolution, characterised by a fusion of technologies that is blurring the Iines between the physical, digital and biological spheres, builds on the digital revolution (known as the Third Industrial Revolution) that has been occurring since the 1950’s, said the World Economic Forum.

'4IR' has seen the emergence of technologies in procurement, which are set to disrupt established methods. Examples are cognitive procurement and Blockchain.

Mluleki Ntlemeza (MCIPS), e-Procurement specialist at PetroSA, unpacks the impact of the fourth Industrial Revolution on the future of procurement in this month’s SmartProcurement.

Human talent, not technology, still the critical factor in procurement

 

Procurement_Talent.pngAccording to 1st Executive, the human element, rather than technology, is still the critical factor in the procurement process. The specialised procurement and supply chain consultancy argues that the human factor is increasingly overlooked in the procurement process, in favour of automation. 1st Executive has urged firms to review their existing e-systems, to ensure that they are maximising the potential of their suppliers’ specialist knowledge. The firm warns that, failing to do so, could mean that procurement misses out on opportunities to add value.

4 procurement vetting pitfalls to avoid

 

RudiKruger_2017.jpgMistakes in business come with the territory, but those made in procurement ought to be considered among the most detrimental to the success of an operation. Common procurement related risks include supplier issues such as delivery delays, increases in demand, quality problems and fraud. These issues are often the result of mistakes made in the procurement vetting process, Rudi Kruger, general manager of Risk Solutions at LexisNexis Data Services, told SmartProcurement.

Procurement models ineffective, say 51% of executives

 

Hands_raised_survey.jpgA survey conducted by the Ayming Consulting Group, found that more than half of the procurement executives (51%) interviewed do not think their current procurement model is effective. The survey involved a number of executives from different size businesses, across a range of sectors.

The survey of 200 executives - including CEOs, CFOs and CPOs - found that only 17% of respondents thought their business's procurement function was "entirely strategically focused". Fewer than one in five, thought the function had driven significant value for their organisation in recent years.

PMI indicator does not bode well for output growth

PMI_July2017.jpgThe seasonally adjusted Absa’s Purchasing Managers’ Index (PMI) declined from 51.5 index points in May 2017, to 46.6 index points in June 2017. The Bureau of Economic Research (BER) said that “the deterioration was broad-based, with four of the five main subcomponents moving lower, compared with May.” The BER added that “the recent volatility is probably driven – or at least exacerbated – by continued uncertainty about the outlook for the domestic economy.” The uncertainty likely results in more erratic domestic orders, which may filter through to more volatile output patterns on a month-to-month basis.

Procurement's value will be judged on its alignment with the organisation's strategy

 

ShirazSarang.jpgIs your procurement division a purchasing or a procurement function? More importantly, into which category does your CEO and other key executives place your function? Shiraz Sarang, CPO at Nedbank discusses how procurement professionals can elevate the importance of the procurement function within an organisation, in this month’s SmartProcurement.

Vetting suppliers: avoid introducing risk into your supply chains

Takata.jpgMany Japanese car makers have recalled whole fleets of models owing to faulty airbag modules

Profit is the ultimate objective of every business operation. However, there are several threats to revenue, including market competition, internal fraud, poor leadership, high expenditure, regulatory obligations and weak links in supply chains, particularly concerning suppliers.

“Working with the wrong supplier could cost you money and a customer’s trust,” Rudi Kruger, general manager of Risk Solutions at LexisNexis Data Services, told SmartProcurement. “Simply put, businesses that receive goods or services from untrustworthy sources run a great risk of failing to meet their own obligations to customers.”


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