12 June 2019

Procurement perspectives: corruption thrives on secrecy in government procurement

Leave a Comment / Commentary, Legal / Contract, Public Sector Procurement, Risk Management / StaffWriter

Inconsistency in procurement processes is prevalent. In many published articles on a variety of topics, corruption is much like a mushroom, it thrives in the dark. The benefit of competition is well-recognised by economists but, to a large extent, concern around public procurement processes is based more on the concerns of political science rather than […]

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From the backroom to the boardroom: the rise of the Chief SCM Officer

Leave a Comment / Professional Development, Sourcing Strategy / StaffWriter

Global directional-level corporate and policy decision-making corridors are going through unprecedented changes. These dramatic shifts have been largely influenced by the increasing importance that boardroom executives attach to supply chain management. Today, the skills and knowledge of supply chain management professionals are increasingly being utilised, with forward-thinking executives and policy makers now officially accepting the

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Best practice for supplier selection

Leave a Comment / Supplier Selection / StaffWriter

While there is usually a diverse pool of suppliers available in most industries, not all of them would serve in the best interest of your organisation. “Selecting suppliers commonly takes into consideration cost, quality, safety, reliability, service level, deliverability and convenience. However, there are some best-practice steps to take when selecting suppliers of the essentials

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How to spot supplier risk in communication

Leave a Comment / Risk Management, SRM Supplier Relationship Management, Supply Chain Management SCM / StaffWriter

Communication is a critical component of any business and is no less crucial in supplier relationships. When your company has great communication with its suppliers, it can be like adding another department to your organisation. There are a large number of suppliers who do an excellent job communicating with their customers. You probably have several

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Tactical vs. strategic sourcing: which road should you take?

Leave a Comment / Sourcing Strategy, Strategic Sourcing / StaffWriter

Procurement departments are becoming increasingly more important to the organisations they serve, so it is important to ensure that your organisation is using the right procurement methods. There are two primary sourcing methods that your organisation can use – tactical sourcing or strategic sourcing. Jeffrey Charles discusses the pros and cons of each.

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PMI paints poor picture for manufacturing activity recovery

Leave a Comment / Change, PMI / StaffWriter

The seasonally-adjusted Absa Purchasing Managers’ Index (PMI) erased most of last month’s gains as it fell to 45.4 index points in May 2019, down from 47.2 index points in April 2019. Barring a drop to 45 index points in March 2019, this is the weakest level since October 2018. The decline brought the average PMI

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10 Cs of supplier appraisal

Leave a Comment / Supplier Management, Supplier Selection / StaffWriter

Supplier appraisal is a significant matter in procurement procedures. Properly done, you will avoid wasting time, money and effort, not to mention embarrassment that stems from awarding a contract/tender to a supplier who, in reality, lacks the technical and financial capacity to handle the work, or who operates under a system of values inconsistent with

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The catch-22 of outsourcing relationships

Leave a Comment / Contract Management, Legal / Contract, Service Outsourcing, Sourcing Strategy / StaffWriter

Customers and suppliers alike maintain that they value innovation. But, far too many outsourcing contracts are full of perverse incentives that inherently disincentivise suppliers from investing in innovation. The result? A catch-22 where outsourcing relationships become a race to the bottom, a situation where organisations think they are spurring on innovation but, in reality, they

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