How to build superior supplier relationships like Honda

MatthiasGutzmann_100.jpgMuch has been said about Japanese automakers and their ability to build close ties with their suppliers. However, in times in which the gap between strategic suppliers and all others is becoming even bigger, and strategic suppliers that will have a much greater influence on a company's growth agenda, it is worth re-examining what companies like Honda and Toyota are doing right when it comes to turning their suppliers into profit machines and what others can learn from them.

With 60%-80% of total organisational revenue spend now lying with a few strategic suppliers in many companies, the need for alignment, collaboration and joint problem-solving has never been more critical than today.

Matthias Gutzmann, Founder of Digital Procurement World, takes a look.

Which global risks are increasing in 2020?

SteveBanker_100.jpgBy Steve Banker, Vice President: SCM, ARC Advisory Group

One of the good things that comes out of the World Economic Forum's (WEF) annual meeting in Davos, Switzerland, is the Global Risks Report. Produced by the WEF, the report serves as a centrepiece for the themes addressed at the Davos event.

The report includes a survey of more than 1 000 members of various stakeholder communities. The reported results are worth the attention of executives that participate in risk management programmes at their respective organisations.

Public procurement needs strategic foresight

StephenBauld_100.jpgBy Stephen Bauld

The reason why a shift towards a more strategic procurement approach is necessary at municipal level and, indeed, across the public sector in general, is clear. As I have noted in several of my columns over the years, governments tend to pay more than private-sector firms for comparable type, quality and quantity of supply.

Procurement Gold: Unleashing the real power of your supply chain

TaniaSeary_100.jpgThe human element will make or break your supply chain career. Procurious Founder Tania Seary reveals the human strengths that artificial intelligence (AI) will never replace and how to leverage this competitive advantage.

How to conduct a supplier review: a case study

FrancisChurchill_100.jpgBy Francis Churchill

In 2017, Vitality, a UK health insurance firm, decided to do a 360-degree review of its supply chain. The firm, part of Discovery Limited, had recently restructured and rebranded, and wanted to have a clear idea of what its relationships with suppliers were like.

Sourcing and supplier managers Duncan Campbell-Marsh, Frances Cooke and Chris Wilson sent out surveys throughout the organisation as well as to its suppliers, asking about activity between Vitality and its suppliers. "The whole point of it is that they have to be honest, otherwise we are not going to achieve anything from carrying out the survey", says Campbell-Marsh.

Data: You can't fake it 'til you make it

AngelaMazzaTeufer_100.jpgBy Angela Mazza Teufer, Senior Vice President, Oracle ERPM WE, ERPM North Install Base

When it comes to crucial procurement data, there is no way to 'fake it 'til you make it'. Accurate information is the bread and butter of a successful organisation but our research reveals that companies are still not investing in the tools or skills to manage their data effectively. This lack of confidence in the accuracy, safety and management of information has a ripple effect across every department, influencing their ability to deliver on strategic objectives.

According to Oracle research, only 34% of finance professionals believe that their data is completely manageable. This should be a sobering statistic for any business leader, particularly as data plays an ever-growing role in how companies operate. According to Accenture, 77% of Chief Financial Officers (CFOs) say that it is their responsibility to drive company-wide transformation, and a similar percentage expect that they will play a growing role in driving their organisation's digital initiatives. But how can they deliver on this expectation when less than half feel confident in their ability to manage data?

PMI paints a bleak picture of the manufacturing sector's 2019 performance

PMI_Economy_150.jpgThe Purchasing Managers' Index (PMI) edged lower in December 2019 to 47.1 index points, down from 47.7 points recorded in November 2019. The December figure is about 1 point below the average recorded throughout 2019.

The PMI paints a bleak picture of the manufacturing sector's performance in 2019 as the headline PMI managed to edge above 50 points for only two months in the year. Bouts of load shedding, persistent weak domestic demand and more intense headwinds from the global economy likely weighed on activity during the year.

What sets successful CPOs apart - a headhunter's perspective

MatthiasGutzmann_100.jpgThe role of the CPO, the chief procurement officer, is changing. Although many CPOs still have narrowly defined functional roles that emphasize cost savings and compliance, today's modern CPOs are business leaders who are associated with revenue growth, innovation and a closer, more strategic proximity to the supply base. As a consequence of this new expanding role, the influence of the new CPO has increased significantly and CEOs are now starting to pay attention to procurement in a way they never have before.

So, what are the attributes of a great CPO? What separates these procurement role models from the pack? Matthias Gutzmann, Founder of Digital Procurement World, talked to three highly regarded experts who should know this better than anyone else: executive search consultants.

10 Best practices for procurement managers in 2020

LindaAshok_100.jpgBy Linda Ashok
A content, communications and branding professional

So many things are slated to change in 2020, the milestone year! But what matters most is your career; how is it going to prepare you as a procurement manager? Okay, let me clarify that there isn't any significant difference between a Purchasing or Procurement Manager. Of course, you know it because you are in the procurement arena already.

Typically, a procurement manager's job description entails the following:
• Partner with the category teams and leaders in developing and implementing strategies to drive significant value from the supplier base
• Conduct in-depth research on existing and emerging trends, identifying new technology/solutions, screening potential new suppliers, and performing complex analytical studies
• Manage relationships with key suppliers, developing negotiation strategies, and conducting negotiatio
• Lead critical process improvement projects and drive higher value for the operating companies.
• Consult internal functional areas such as marketing, R&D, operations, logistics, legal, and corporate functions

With such expectations in mind, an aspiring procurement manager must possess modern skillsets that organizations will seek in 2020. In this article, we cover both the elementary and advanced expectations from the role of a procurement manager.

Fraud and corruption: how to catch a fraudster

StevenPowell_100.jpgBy Steven Powell
Director of Forensics at ENSafrica

Every organisation is susceptible to fraud, but some are more susceptible than others. This article provides an overview of the profile of a typical fraudster to help readers identify fraudsters operating in a business.

Sustainable procurement in Australia

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

While Australia is often thought of as an early adopter and innovator, sustainable and ethical procurement is an area in which this country is lagging behind. There is a focus on product stewardship and end-of-life strategies, but targeting procurement practices seems to have slipped through the cracks.



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