World Bank assesses public procurement systems in 77 economies


Thumbnail image for Thumbnail image for Tania.jpgGiven its size, the public procurement market has the potential to improve public sector performance, promote national competitiveness and drive domestic economic growth. However, with such vast sums and interests in jeopardy, public procurement is the government activity most open to corruption and fraud. It provides numerous occasions for all involved to divert public funds for private gain.

To understand the size and frequency of these ‘diversions of public funds’, the World Bank’s Benchmarking Public Procurement report analyses 77 economies on issues relating to value and the promotion of transparency, accountability and efficiency in public procurement.

Tania Ghossein, Senior Private Sector Development Specialist and Programme Co-ordinator of the Benchmarking Public Procurement project, World Bank Group, discusses the significance of the report in this month's SmartProcurement.

SAP functionality can relieve the pinch of your procurement group's rationalisation


StevenFreemantle2.JPGReducing costs is a common survival strategy for organisations to employ. But, as the economic situation deteriorates, what started as a doing away with coffee, printing paper or non-essential spares becomes organisational restructuring, which may translate into job cuts. Purchasing departments have not been spared the distress of this kind of cost management, yet are still required to maintain (strategically) the service levels needed to keep customers satisfied.

Having seen many forms of cost reduction over the years (as an advisor in SAP supply chain optimisation), Steven Freemantle notes that staff reductions are seen as an accepted, albeit hugely disruptive, strategy to weather the storms of uncertain economic times, and like many strategies, there is often a disconnect between strategic intent and the day-to-day tactical activities.

“Staff are often thrust into new or different supply chain roles where they quickly become overloaded, however, if you run SAP this kind of painful organisational change can be soothed in many ways – there are SAP tools to effectively do 2, 3 or 4 people’s jobs,” says Freemantle, from SweetThorn Thought Leadership, in this month’s SmartProcurement.

Supplier development key to curbing Zimbabwe's ballooning import bill


GibsonSibanda.pngThe ballooning imports against a drop in exports have seen Zimbabwe faced with liquidity challenges. In as much as importation of finished products is adding towards the bill, a closer look shows that other production-related imports are high - and many of these do have local manufacturers. Supply chain professionals can do a great deal to help reduce the amount of money leaving Zimbabwe through importation of raw materials, packaging and other auxiliary materials by developing the country’s local suppliers, says Gibson Sibanda, Secretary of the CIPS Zimbabwe branch, in this month’s SmartProcurement.

Leadership Profile: Nawaaz Kalick


Thumbnail image for Thumbnail image for NawaazKalick.jpgThis month SmartProcurement profiles: Nawaaz Kalick: from: Astrapak Limited

Full name: Mohamed Nawaaz Abdul Kalick

Position: Group Procurement & Supply Executive

Your organisations’ procurement expenditure: R 1.4-billion per annum

Who does P & SM report to: Chief Executive Officer (CEO)

Private sector or Public sector: Private Sector

Core business activity of the enterprise: Manufacturer of plastic packaging materials

SA 42nd for global supply chain resilience


SA-flag.pngMeasured according to different dimensions of supply chain risk, South Africa was ranked 42nd out of 130 measured countries and territories in 2016.

Insurer FM Global's Resilience Index ranks countries most and least exposed to different dimensions of supply chain risk, having measured their resilience to supply chain disruptions.

The survey data examines nine key drivers of supply chain risk and groups into three categories: supply chain, risk quality and economic factors.

Smart Procurement World celebrates 10 years serving procurement and SCM


Thumbnail image for Mediacy.jpgSmart Procurement World celebrates a landmark year in its history this year. “We are celebrating 10 years of serving the interests of procurement and supply chain professionals in South Africa. Smart Procurement World would like to say ‘thank you’ for your unwavering support over the years,” said Mediacy Mudekwa, Head of Content, Smart Procurement World.

Empowering SMEs is key for Africa progress


smes.jpgProcurement as a driver for the development of the continent was a major theme at the recent CIPS Pan Africa Conference.

"Unless we get procurement to support entrepreneurship, it will be like trying to move Everest with a teaspoon,” said KeaObaka Mahuma, head of enterprise and supply chain development for Africa at Absa, at the annual event at the Emperors Palace in Johannesburg, South Africa.

Absa aims to raise more than a R1-billion to support SMEs


Thumbnail image for Thumbnail image for KeaobakaMahuma.jpgAbsa aims to raise more than a billion rand to support emerging small and medium enterprises (SMEs) in South Africa, and later across various markets where it has operations.

This is part of the bank’s ‘Shared Growth’ initiative announced earlier in July 2016, through which the bank aims to use its assets and resources to grow and develop the societies where it operates while growing its business.

According to KeaObaka Mahuma, Head of Enterprise and Supply Chain Development at Barclays Africa, the funding will be raised from a number of sources, including the bank’s own balance sheet. The fund will predominantly target existing SMEs linked to the supply chains of private and public sector corporates.

Commerce Edge SA receives CILT training provider accreditation


CILT_CommEdge1.JPGCommerce Edge South Africa has been formally accredited as a training provider of the Chartered Institute of Logistics and Transportation (CILT).

CILT is a professional body operating out of the UK with local representation in South Africa.

Image: Catherine Larkin and Vaughaun Zoutendyk

G20 Summit: supply chains disrupted for clear blue skies


SupplyChainSummit.jpgIn preparation for the upcoming G20 summit in China this September, the Shanghai Environmental Protection Bureau (SEPB) issued an order for an estimated 1 000 factories within a 300-km radius of Shanghai to cut down production.

This measure was enacted to reduce pollution before world leaders arrive for the event. So how will this affect global supply chains?

This year, China hosts its first-ever G20 summit in Hangzhou, a city situated 240 kilometres south-west of Shanghai, where significant industrial, construction and residential emissions affect the air quality of its neighbouring cities.

PMI down 1.2 points, but began Q3 strong

pmi.jpgThe seasonally adjusted Barclays Purchasing Managers’ Index (PMI) fell by 1.2 index points to 52.5 in July. Despite the slight drop, the current level still signals that the sector experienced a reasonably strong start to Q3 2016 after a robust performance during Q2, reports the Bureau for Economic Research.

The PMI remains in line with recent Eurozone manufacturing PMI readings (a key export market for South-African produced goods). Initial data releases suggest that the Eurozone economy has so far remained relatively resilient after the UK’s brexit vote, which is encouraging for the local sector’s export performance going forward.

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