Procurement perspectives: corruption thrives on secrecy in government procurement

StephenBauld_100.jpgInconsistency in procurement processes is prevalent. In many published articles on a variety of topics, corruption is much like a mushroom, it thrives in the dark.

The benefit of competition is well-recognised by economists but, to a large extent, concern around public procurement processes is based more on the concerns of political science rather than on those of economics.

"The goal is to avoid corrupt practices", says Stephen Bauld, a government procurement expert.

From the backroom to the boardroom: the rise of the Chief SCM Officer

DouglasBoateng_100.jpgGlobal directional-level corporate and policy decision-making corridors are going through unprecedented changes. These dramatic shifts have been largely influenced by the increasing importance that boardroom executives attach to supply chain management.

Today, the skills and knowledge of supply chain management professionals are increasingly being utilised, with forward-thinking executives and policy makers now officially accepting the Chief Supply Chain Management Officer as a member of the C-suite.

Drawing on a sample of international organisations, including Fortune 1000, FSTE 250 and JSE 100 companies, as well as public-sector organisations with a combined revenue or spend of well over a trillion USD, the study by Professor Douglas Boateng [1] examined directors' understanding of the strategic importance of supply chain management and, in particular, the increasing boardroom role of the Chief Supply Chain Management Officer.

Join us at Smart Procurement World Indaba in September for a panel discussion on 'Driving a Procurement Mandate and the Professionalisation of the Function - the need to rebuild, professionalise and license the procurement professional in South Africa' >>

Best practice for supplier selection

RudiKruger.jpgWhile there is usually a diverse pool of suppliers available in most industries, not all of them would serve in the best interest of your organisation.

"Selecting suppliers commonly takes into consideration cost, quality, safety, reliability, service level, deliverability and convenience. However, there are some best-practice steps to take when selecting suppliers of the essentials that help a business to function and reach its operational objectives", says Rudi Kruger, General Manager, LexisNexis Data Services.

How to spot supplier risk in communication

BenGoldwasser_100.jpgCommunication is a critical component of any business and is no less crucial in supplier relationships. When your company has great communication with its suppliers, it can be like adding another department to your organisation.

There are a large number of suppliers who do an excellent job communicating with their customers. You probably have several suppliers that you can think of right now that practice excellent communication. But what is it that sets these suppliers apart? Ben Goldwasser, Business Development Professional, Spendrix, investigates.

Tactical vs. strategic sourcing: which road should you take?

TwoRoads_100.jpgProcurement departments are becoming increasingly more important to the organisations they serve, so it is important to ensure that your organisation is using the right procurement methods.

There are two primary sourcing methods that your organisation can use - tactical sourcing or strategic sourcing. Jeffrey Charles discusses the pros and cons of each.

PMI paints poor picture for manufacturing activity recovery

manufacturing_trouble_100.jpgThe seasonally-adjusted Absa Purchasing Managers' Index (PMI) erased most of last month's gains as it fell to 45.4 index points in May 2019, down from 47.2 index points in April 2019. Barring a drop to 45 index points in March 2019, this is the weakest level since October 2018. The decline brought the average PMI for the first two months of Quarter 2 of 2019 to 46.3 points, below the Quarter 1 of 2019 average of 47.1 points.

"This, unfortunately, does not bode well for a recovery in activity in the manufacturing sector after output declined notably on a quarter-on-quarter basis in Quarter 1", said the Bureau for Economic Research (BER).

10 Cs of supplier appraisal

MosesManuel_100.jpgSupplier appraisal is a significant matter in procurement procedures. Properly done, you will avoid wasting time, money and effort, not to mention embarrassment that stems from awarding a contract/tender to a supplier who, in reality, lacks the technical and financial capacity to handle the work, or who operates under a system of values inconsistent with your own.

"It is, therefore, crucial that you pay attention to your supplier appraisal procedures", says Moses Manuel, a lecturer in business, legal and development-related studies and Founder of the Zerite Network.

The catch-22 of outsourcing relationships

KateVitasek_100.jpgCustomers and suppliers alike maintain that they value innovation. But, far too many outsourcing contracts are full of perverse incentives that inherently disincentivise suppliers from investing in innovation. The result? A catch-22 where outsourcing relationships become a race to the bottom, a situation where organisations think they are spurring on innovation but, in reality, they are fostering the status quo.

Kate Vitasek, Professor in Supply Chain Management at the University of Tennessee, unpacks how transaction-based sourcing models are preventing innovation and shares how to move away from them in supply relationships.

6 most painful mistakes in spend analysis

SammeliSammalkorpi.jpegWhile procurement leaders increasingly turn spend data into a competitive advantage, laggards continue to repeat painful mistakes.

You may have noticed that spend analytics is a hot topic right now. According to Deloitte's Global Chief Procurement Officer Survey 2018, the majority of CPOs across the world expect analytics to have the greatest bearing on procurement over the next two years. As a provider of spend analytics software, Sievo has been busy and has seen more interest than ever from both private and public organisations to get their spend data into shape.

As leading procurement organisations find new opportunities to turn spend data into value, others repeat the same painful mistakes. Sammeli Sammalkorpi, VP: Customers and Co-founder of procurement analytics solutions provider Sievo, highlights the top six mistakes that you should avoid making in your spend analysis projects.

5 factors that cause your organisation's travel spend to be out of control

DianaAkchurina_100.jpgProcurement travel managers have a whole host of issues that they need to take into account: from cost, efficiency and payment processing to data security, service reliability and employee safety. Diana Akchurina, business-to-business professional at Gett, a taxi-hailing app that operates in the USA, UK, Russia and Israel, discusses five factors that make travel one of the most difficult operating expenses to control.

Join us at Smart Procurement World KZN in June to hear more on global trends around procurement's role in influencing and managing spend. Ian George will discuss global economic trends and the opportunities they present to procurement.

What is sustainable procurement?

EmmaBerthold_100.jpgWhat, exactly, is 'sustainable procurement'? What should purchasers be looking out for and what should product manufacturers do to ensure that their products measure up?

Good Environmental Choice Australia's (GECA's) Emma Berthold weighs in on what sustainable procurement really is and what purchasers should be looking out for.


 

 

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