6 strategies to rank as a procurement leader

LindaAshok_100.jpgIt is excellent if you have already gained a grip on procurement's changing landscape. If not, for many businesses, procurement remains quite intimidating. There are concerns about co-ordinating upstream and downstream processes. Risk management, supplier intelligence, advanced analytics and a drive towards innovation all suffer from disruptive digital transformation. "To keep up with the fast-changing supply chain landscape, a procurement leader has to have control over aspects that govern procurement", says Linda Ashok, a content, communications and branding professional.

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.

Oxymoron: Ethical policies and public procurement?

StephenBauld_100.jpgWe would all agree that government procurement should be held to the highest level of ethical standards.

It is very important to the entire system that everyone working with or for a municipality be of the same mind set. The whole idea of the importance of adherence to an appropriate standard of ethics in the conduct of the procurement function is self-evident.

Yet in historic terms, concern with respect to ethics is a fairly recent phenomenon, particularly at the local government level, says Stephen Bauld, a government procurement expert.

CPO Leadership Profile: Pascal Exbrayat

PascalExbrayat_100.jpgThis month SmartProcurement profiles Pascal Exbrayat from Nestlé East and Southern Africa Region (ESAR).

Full name: Pascal Exbrayat

Position: Head of Procurement, Nestlé East and Southern Africa Region (ESAR)

Your organisation's procurement expenditure: US$450-million

Who does P & SM report to: Head of Supply Chain, Nestlé ESAR

A shifting role in the digital age - are TMCs tech companies or people companies?

WallyGaynor_100.jpgAcross industries, the Fourth Industrial Revolution has brought a step-change in how companies approach their processes, technologies and business models. The most successful businesses of today have responded to their changing role in society by digitising and reconfiguring to unlock new sources of value for people. How is this playing out in travel?

In a report called 'Harnessing Technology to Empower Your People', eighty seven percent of travel buyers said they are excited about the future of travel technology, but 76% said they were looking to partner with people to keep them up-to-speed about the latest technology.

Wally Gaynor, of Travellinck, tells us more in this month's SmartProcurement.

Corruption and collusion: lessons from Africa

ElainePorteous_100.jpgBy Elaine Porteous

Corruption is not unique to Africa, nor is it a new problem. However, Africa is perceived as the most corrupt region in the world as well as the most under-developed. Corruption is a complex social, political and economic phenomenon that slows economic development and contributes to governmental instability. There is no simple solution. There have been numerous academic studies and notable interventions by such institutions as the World Bank, the United Nations and the Norwegian Government, but progress remains agonisingly slow.

'ESD programmes not relevant and funding remains a problem' say entrepreneurs

LouisaPaulsen.jpgThe SEED Engine is currently running its annual The Real State of Entrepreneurship Survey. In 2018, more than 1 500 entrepreneurs participated in the survey. The survey findings were enlightening, but not unexpected: enterprise supplier development (ESD) programmes that are intended to assist entrepreneurs are proving to be of little value to the majority of entrepreneurs, many of whom attend several per annum with a view to access purchase orders.

While ESD programmes are sending entrepreneurs back to school, many indicated that the programmes are not addressing the specific needs of their businesses.

Procurement contracts are turning entrepreneurs away as contracts are often not split or designed to accommodate smaller role players in sectors.

Entrepreneurs further flagged corruption among procurement personnel as a serious and growing issue, one that is adding to the cost of doing business.

Louise Paulsen, a consultant, advisor, director and mentor in localisation and enterprise development, highlights the main issues from the 2018 survey.

Join us at Smart Procurement World Gauteng, where a panel discussion entitled 'Reducing the SMME Mortality Rate' will unpack the development of effective exit strategies for SMMEs that have completed corporate ESD programmes. >>

August PMI decline larger than anticipated

PMIdown_100.jpgThe seasonally-adjusted Absa Purchasing Managers' Index (PMI) declined to 45.7 index points in August 2019, down from 52.1 in July 2019.

While the magnitude of the decline may have been larger than anticipated, a fall in the PMI in August was not unexpected. This followed on July's surprisingly solid reading despite the weak domestic demand environment and growing concerns about the health of the global economy.

All of the PMI's major sub-components came in below the neutral 50-point mark, signalling general weakness in the sector.

The power of procurement: an Australian perspective

JeniChristensen_100.jpgBy Jeni Christensen (MCIPS), Procurement Manager in Melbourne, Australia, for Villa Maria Catholic Homes, a not-for-profit organisation linked to the Catholic Church.

2019 has been a productive year for procurement with the Commonwealth Modern Slavery Act of 2018 (the Act) being passed by the Australian Parliament on 29 November 2018 and entered into force on 01 January 2019. The Act established a national modern slavery reporting requirement for large businesses (> AU$100-million in revenue) and other entities doing business in the Australian market over the same threshold.

There is some great work being done but there is still a huge amount to do to eradicate modern slavery within Australia and, indeed, globally. The key is to educate ourselves, our suppliers, staff and business contacts on what this means, why this is important, how they can help and what we are looking for.

State capture: a supply chain created problem?

Mediacy_.jpgBy Mediacy Mudekwa

The cost of state capture is estimated to be around R1.5-trillion over the last approximate four years. To put this into perspective, R1.8-trillion is the national budget for 2019. According to the Daily Maverick, state capture has wiped out "a third of South Africa's R4.9-trillion gross domestic product, or effectively annihilated four months of all labour and productivity of all South Africans, from hawkers selling sweets outside schools to boardroom jockeys".

Of course, there is no way we can quantify the true cost and real extent of state capture. One can only guess what this has done to state-owned enterprises (SOEs) and the influence that it has had on their balance sheets and service delivery. The question is: what role has procurement and the supply chain played in this? And what procurement/supply chain management (SCM) lessons can we learn from state capture?

After saving costs, now is the time to save the world!

Bertrand_Malteverne.jpgBy Bertrand Maltaverne

We, as procurement professionals and as citizens, have a responsibility to take action to tackle the challenge of working sustainably.

01 August 2019: this could be when we reach Earth Overshoot Day this year. For the rest of the year, we will be living on credit. When it comes to natural resources, that is.

"Earth Overshoot Day marks the date when humanity's demand for ecological resources and services in a given year exceeds what Earth can regenerate in that year" (OverShootDay.org).



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