By Alejandra Garcia (MCIPS), Vice President: Procurement, Royal DSM

In the first part of this three-part article series, I focussed on obtaining customer insights; in the last part, I will deal with crisis management, but nothing can be achieved in any function without an engaged, fit-for-purpose team - the focus of this second instalment. It is becoming abundantly clear that the transformation of our function is not just about organisational structures or processes, it must also focus on our core resource: people.

By Dustin Lanier, a Certified Public Procurement Officer (CPPO) and Principal Consultant at public procurement consulting firm Civic Initiatives.

For any automation project in government to make it through the "hard middle" where enthusiasm wanes and the bug counts grow, there has to be a burning "why?"

So, what is the "why?" on procurement automation?

Hear more international insights from Dustin at the upcoming Smart Procurement World Indaba in September 2021
KEYNOTE SYMPOSIUM | Cross-sector procurement trends as revealed by COVID-19
Is it possible to implement strategic sourcing in the public sector? What is preventing effective strategies in this space?

By Heta Pirttijärvi, Business Development Manager, Sievo

In this article, we will look at some of the effects that COVID-19 has had on business spend based on anonymised enterprise data.

2020. We all know that it was an eventful year, disrupting many things as we know it. There have been enough Internet posts about how 2020 disrupted digitisation, how working from home affected individuals and how procurement needed to adapt. But how is 2020 presented in companies' spend? Have companies spent more on consulting projects for help through the crisis? How much has travelling spend actually decreased by? How about fruit around the office? Have companies had the money to do market research? Let us find out...

By Mark Raffan, The Negotiations Ninja, International Procurement Veteran & Recognised Expert on Procurement Negotiations

"Good is the enemy of great. And that is one of the key reasons why we have so little that becomes great." - Jim Collins

People get uncomfortable when they hear this brilliant wisdom from Jim Collins.

Why?

Because I think, intuitively, we all know this to be true. We all know that if we settle for good enough, we'll never achieve greatness. Regardless of what we choose to pursue as a career or passion, how many of us push for greatness?

I find Collins' wisdom to be true in all areas of our lives, and it is especially true in the discipline of negotiation.

Hear more international insights from Mark at the upcoming Smart Procurement World Indaba in September 2021
THE NEGOTIATOR | Creating leverage in your procurement negotiations
How can you still produce procurement value in mature, regularly sourced categories in the face of rising prices?

By Will Green

Barriers to the use of public procurement as means to spark innovation have been highlighted in a UN report.

In the report the UN Economic Commission for Europe (ECE) said public procurement accounted for 10-15% of GDP on average in most countries and "innovation-enhancing procurement" - or IEP - "should be considered as a strategic policy tool".

The report defined IEP in two ways. Firstly, as "buying the process of innovation - R&D with (partial) outcomes", in which procurement buys R&D services for products, services or processes that do not yet exist to meet a specified need.

By Nora Elizabeth Mc Gann, Analyst, World Bank, and
Nazaneen Ismail Ali, Senior Procurement Specialist, Governance Global Practice, World Bank

Gender responsive procurement is a powerful tool to boost women's economic empowerment, promote gender equality and build more equitable societies. This broad approach to the gender/procurement nexus looks at 'value beyond savings' and includes interventions such as facilitating women-led small and medium enterprises (SMEs) in public procurement, infusing gender equality throughout supply chains, reaching Tier 2 suppliers (Tier 1 suppliers are direct suppliers, while Tier 2 suppliers are suppliers' suppliers), diversifying male-dominated sectors and supporting corporate supply chain diversification, among other initiatives. Let us explore gender in public procurement in more detail:

By Sarah Scudder, President and Chief Revenue Officer, Real Sourcing Network

Every year, companies spend billions on packaging for their products. According to a recent research report by Smithers, the value of the global packaging market was $917-billion in 2019. It will grow to $1.05-trillion by 2024.

The cost of packaging depends greatly on the types of products a company sells. Packaging costs also vary based on the types of materials used and complexity of packaging designs. Because of these differences, packaging costs can range from less than 2% to 10% or more of total product cost.

The seasonally adjusted Absa Purchasing Managers' Index (PMI) rose to a solid 57.8 points in May 2021 from 56.2 in April. Four of the five subcomponents remained well above the neutral 50-point mark with only the employment index dipping back into negative terrain. In all, the average level of the PMI recorded in the first two months of Q2 2021 (57 points) is well above Q1's average (53.8), which suggests that the sector is on track to record another quarterly expansion. A significant annual expansion is effectively guaranteed given the extremely low base set in Q2 2020.

By Alejandra Garcia (MCIPS), Vice President: Procurement, Royal DSM

For most organisations, procurement was already undergoing a digital transformation when the COVID-19 pandemic hit us last year. While the accelerated rate of change brought on by the crisis has been brutal, it has confirmed how critical our function is to maintaining a company's supply chain, and ensuring business continuity and long-term success.

Disruptions will increasingly be part of our reality and we cannot act surprised when unexpected events occur. While there are certainly 'state-of-the-art' capabilities and approaches to mitigating a crisis, having some fundamentals in place are key to successfully navigating them during tough times - and help us thrive when times are good. The basic principle is that business is there to meet customer needs and successfully fulfilling these needs requires aligned and engaged procurement teams.

I have captured this approach under the term 'inclusive'. This is not the standard usage involving diversity (e.g. gender, passport), but a broader meaning where we involve all stakeholders, listen to their voices and welcome what each one brings. In this three-part article series, I will cover the importance of customer insight, engaged teams and crisis management to become an inclusive chief procurement officer (CPO).

Hear more international insights from Alejandra at the upcoming SmartProcurement World webinar on 25 May 2021
WEBINAR | Building Bold Procurement and Supply Chain Strategies for Uncertain Times

A good number of South African organisations find themselves in precarious positions when it comes to procurement because they have yet to properly integrate their basic processes and their weaknesses have become more evident during a time that limits peoples' movements and physical contact.

The global COVID-19 pandemic has changed almost every business process and for procurement, it has exposed the need to improve existing processes and pressured organisations to incorporate digital solutions as remote working has become a norm for the foreseeable future.

In a recent survey conducted by software development company Oxalys South Africa, in partnership with the Chartered Institute of Procurement and Supply (CIPS) and Smart Procurement, entitled: Post Covid-19: Procurement Key Priorities and Challenges in the Digital Era in South Africa, it was established that although there might be a lack of maturity in the South African procurement space, there is a real will to make it a strategic function, especially in the wake of the challenges brought on by the pandemic.

In fact, many South African organisations have not shied away from adopting digital solutions to streamline their business processes. It is a trend procurement must follow because current and future circumstances continue to demand automation for improved processes.

However, South African organisations must adopt the right path and a practical solution to digital procurement.

A senior buyer for the natural sciences portfolio at the University of Pretoria (UP) who is conducting research for her Doctoral thesis is calling for participants to complete a survey.

Alet Snyman, a seasoned procurement practitioner of 20 years, is completing research investigating the relationship between project success and entrepreneurial performance.

Alet is a registered Doctoral student (1285025) with the Department of Business Management at UP.