Vendor database optimisation: Are you doing it right?

Schalk_vdMerwe_100.jpgOne of the primary components of any procurement function's strategy is, or should be, to ensure that the company has an optimised vendor base. This is aimed at achieving a more cost effective and high-quality supply chain.

Most companies therefore go through a vendor rationalisation process at some stage and continually review vendor categories to ensure that the selected set of vendors remains the best fit for the respective services or products they deliver to the business.

Optimising the vendor base is normally done by assessing various elements such as pricing, service delivery, contractual terms, internal stakeholder sentiment etc., which are, of course, all very important elements to consider. However, the important elements most often overlooked are the non-contextual ones, says Schalk van der Merwe, Executive Head: Supply Chain Governance at data powered risk solutions provider Inoxico.

6 reasons you're still stuck in procurement 1.0

JulianHarris.jpgEvery business desires growth and success. They set targets to support the overall objectives of the GDP. However, it is natural to encounter many roadblocks along this journey and procurement is seen as an important area as it can block or support growth.

Procurement analytics provider Robobai surveyed 250 procurement specialists and asked them what their pain points are within a growing organisation. Sharing the results, Julian Harris, Robobai chairman and founder, shares the top-six reasons an organisation might be stuck in 'procurement 1.0'.

Optimising the procurement process to boost efficiency

OptimisingProcurement_300.jpgThe role of procurement extends far beyond the belief that procurement's primary function is to obtain goods and services in response to internal needs. A world-class procurement process aims to optimise the whole process to create significant business value. Procurement optimisation leads to a number of benefits and adds remarkable value to your organisation as a whole. It ensures efficiency in your procurement process which in turn has a domino effect of positive reactions within your entire organisation.

Since the procurement process touches every organisational department and affects revenue directly, it is essential to keep the process running smoothly by regularly reviewing what's working well and what needs to be optimised for greater efficiency.

Procurement Academy's Marc Wins takes a look.

Harness procurement for socio-economic growth in sub-Saharan Africa

APEDS_honoured_guests.jpg

From left to right: Goodall Gondwe, Minister in Finance, Economic Development & Planning, Malawi; Margaret Mwanakatwe, Minister in Finance, Zambia; Mizinga Melu, CEO of Barclays Bank, Zambia.

Delegates at the inaugural Africa Procurement & Enterprise Development Summit (APEDS) threw their weight behind a drive to ensure that the public and private sectors harness procurement for socio-economic growth in sub-Saharan Africa.

By adopting a resolution and key actions at the summit, delegates acknowledged the urgent need for accelerated leadership and focus on developing sustainable SMMEs through public-procurement reforms and private-sector participation.

The resolution ties in with the summit's goal to bring together seasoned professionals, dedicated to the changing nature of the procurement ecosystem in Africa to discuss how procurement can drive socio-economic growth, sustainable procurement, localisation, SME development and other topics distinctive to procurement in Africa.

How can procurement help drive organisation strategies in the face of turbulence and vulnerability?

Mediacy_.jpgCountless studies have established that the C-suite and boards of directors want their supply chains to become fully-fledged business functions and with the ability to influence organisational objectives or in the case of private sector, profitability. We have been here before, but what has been tangible proof of "from backroom to boardroom, procurement goes strategic"? How do you measure the true value of procurement's influence on organisation strategy? The answer is a function of the level of influence supply chain teams have on overall organisation strategy, says Medacy Mudekwa, Head of Content for Smart Procurement World.

Smart Procurement Review will soon hit the shelves. To get insights into procurement developments over the last 12 months, email us for your copy.

New solutions signal the end of the 30-day account

PrivesanNaidoo_100.jpgThe frequent use of 30-day accounts by South Africa's public and private sectors could soon come to an end, with new solutions providing corporate and government entities with a much-improved alternative.

Although 30-day accounts are still widely used by the travel industry, these accounts are an unnecessary burden on Travel Management Companies (TMCs) whom are left to forward-fund clients' travel requirements. This creates cashflow challenges for TMCs.

A panel discussion at the recent Global Business Travel Association Conference has helped to identify many alternatives to the 30-day account, including lodge cards, prepaid cards and single-use virtual cards.

Privesan Naidoo, Head of Nedbank Corporate Card Issuing and American Express Merchants (providing cards and payment solutions for travel, entertainment and procurement) unpacks some of the alternatives in this month's SmartProcurement.

How to get to 100% value creation from procurement

GaryNobel_100.jpgAs procurement professionals, what do you think your suppliers think of you - and do you care?

Do they see you as a hard-edged negotiator who wants to strike the best deal, based on price alone? Or do they see you as relationship-driven, keen to create more visibility within the business and developing inter-dependent relationships with your supply base?

Hopefully you want to be seen as the latter, but are the systems and tools you have in place sometimes working against you? Asks Gary Noble, joint managing director of 1st Executive, an international procurement and supply chain recruiter.

High-performance procurement risk management

PerSegerberg_100.jpgWhat 'procurement masters' are doing and how they are benefitting

An Accenture study involving more than 125 chief procurement officers observed a profile of how high performers in risk management operate.

The study identified "procurement masters" in organisations that save at least ten times as much as it costs them to operate their procurement organisations. Organisations operating at a lower level save about four times as much.

Accenture identified 22% of the survey population as masters.

Taking this profile forward, Accenture sought to learn how masters' practices differ. Per Segerberg, Partner at Qvartz, a management consultancy in Supply Chain Management, Procurement Transformation and Global Sourcing, takes a look at the findings in five key areas of procurement.

Inconsistent laws a public-sector headache when recovering irregular expenditure

HelenVenter_100.jpgThe public sector's struggle to recover irregular expenditure is hamstrung by inconsistent laws. Public-sector specialist Helen Venter unpacks the problem in this month's SmartProcurement.

Love procurement - because it can impact society and the environment

Join us at Smart Procurement World 2019, where one of our conference themes will be "Walk the talk: High-impact procurement"

RobertFreeman_100.jpgProcurement work is much more than just securing the right products, in the right quantity and quality at the right place... Let's think wider, more holistically, writes Robert Freeman, a procurement and supply chain expert at Future Procurement, a procurement coaching and consultancy organisation.

November PMI shakes off 3-straight-month decline

PMI_growth.jpgThe seasonally adjusted Absa Purchasing Managers' Index (PMI) rose to 49.5 index points in November from 42.4 in October.

This was the PMI's first increase after three straight months of declines and brought the index to the best level since July 2018.

The improvement was broad-based with four out of the five main subcomponents rising compared with October.


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