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Articles in category: Sourcing
The South African trade and industry minister Rob Davies has called on the private sector and consumers to “throw its weight” behind the country’s Buy Local Campaign.
Speaking at the Buy Local Summit and Expo in Ekurhuleni, Davies (pictured) said that both companies and consumers need to “make it their business” to promote and buy locally-produced goods.
“If all of us can take decision to buy locally manufactured products, we can create a more positive future for our country in terms of employment opportunities,” he said.(Read Full Article)
APQC recently conducted a best practices study that examined how high-performing organizations establish and run supplier category management programs. The study revealed that successful organizations align their procurement and overall business strategies by creating cross-functional category management teams. In addition to procurement staff, these teams can include technical experts, quality representatives, and others, depending on the organization’s needs.(Read Full Article)
A helicopter view of South Africa’s public-sector procurement system highlights not just its scale, scope and complexity, but also some of its key fragilities. Every year, departments and agencies across the three tiers of government spend more than R460-billion on procuring goods and services, ranging from automobiles for the police, to textbooks for schools and medication for hospitals.(Read Full Article)
Due to the complexity and inter-dependencies of these megatrends and the diversity of affected countries, markets and companies it’s difficult to assess the impact on procurement but leading procurement managers foresee major changes in a couple of focal areas within the next decade.(Read Full Article)
The typical business challenge when you go to market with an RFP centers on getting ideas for what is possible, and identifying suppliers that either already have these ideas or are willing to work with you toward that end. Targeted activities are often services or complex products where quality, service, or the engineered final product will be different from each vendor responding.(Read Full Article)
One of the most interesting phenomena of social science is the power of group decision making. Social science has few well evidenced and proven laws, but the ‘wisdom of crowds’ is one of the few. This relies on the principle that multiple people generally make better decisions collectively than one person. This phenomenon is present throughout societies, with democracy being the obvious example.
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Accenture (NYSE:ACN) has completed its acquisition of Procurian, a leading provider of procurement business process solutions. The acquisition, originally announced on Oct. 3, 2013, further enhances Accenture’s capabilities in procurement business process outsourcing (BPO) across a range of industries including manufacturing, consumer goods, high-tech and financial services, and adds key analytics capabilities and technology assets.
Through the acquisition, Procurian’s approximately 780 employees in the United States, United Kingdom, Czech Republic, India, China and Brazil have joined Accenture.
“With the acquisition complete, we look forward to integrating Procurian’s deep strategic sourcing category expertise, advanced analytics capabilities and ...(Read Full Article)
The number of countries deemed to be an “extreme risk” for human rights abuses has increased by 70 per cent since 2008. According to Maplecroft’s Human Rights Risk Atlas, the number of countries in the category has risen from 20 to 34.
Countries that have seen the worst deterioration in their human rights since 2008 include war-torn Syria, which is ranked at number one out of 197 nations, Egypt, Libya, Mali and Guinea-Bissau.
The key emerging economies of Nigeria, India, the Philippines and Indonesia have also dropped into the worst category. MENA and other African countries account for the ...(Read Full Article)
A campaign has been launched in South Africa to encourage consumers and firms to buy locally produced goods and services. Buy Back SA, backed by the South African government’s Department of Trade and Industry and including a TV ad fronted by the actor John Kani (see below), calls on purchasing departments to “reconsider procurement channels”.
Francois Boshoff, creative director at marketing agency The Volcano Group that developed the campaign with The Manufacturing Circle, said: “If people could stop and consider even for a moment the impact of that single imported goods purchase, then the first phase of this campaign ...(Read Full Article)
More than eight out of 10 firms say category management is a top priority for procurement, a survey has revealed. Future Purchasing’s Category Management Study found 85 per cent of companies thought category management was a top-three priority.
However, just 2 per cent rated their use of category management as excellent, with a quarter of respondents describing themselves as “leaders” and the rest as “followers”.
The study revealed that a fifth of followers, defined as those who described the level of category management in their organisation as basic or improving, had no measure of savings. This compared with leaders ...(Read Full Article)
Future Purchasing’s Category Management Study was released this week. The 42 page report contains detailed and insightful information from over 300 global companies about their category management approaches.(Read Full Article)
It’s widely accepted that small and medium-sized businesses (SMEs) make up the lion’s share of the South African economy, and that Government has shown a clear commitment to helping them grow, to keep economic benefits of contracts within the country.(Read Full Article)
Traditional methods of supplier “management” through fear and threat are, hopefully, in decline. Banging the table and screeching for another cent of cost savings are increasingly rare behaviours. Influencing and persuading skills are competencies that both procurement executives and their stakeholders need to develop to be successful in creating fully workable and sustainable supplier relationships.(Read Full Article)
Contract management sometimes gets short shrift in discussions of where procurement adds value. It’s assumed by many in an organization - including, unfortunately, some in the procurement function - that reducing to writing the results of a negotiation on pricing, terms, conditions, product or service delivery, and other details is enough, that once officially encapsulated in a formal contract document all details are settled and things will proceed from there smoothly.
The focus on cost during the global economic downturn has been beneficial to procurement professionals, says REED's group managing director, Tom Lovell. It’s been an opportunity to demonstrate the full extent of the function’s capability. This ranges from improved category management to strategies for offsetting a volatile commodities market, developing more collaborative relationships with suppliers, to drawing out innovative cost saving solutions, or even controlling personnel costs.(Read Full Article)
Most people believe that direct categories are more important, but procurement is directing a lot of resources towards managing indirects. Is this a good use of resources? I read with interest this morning on Paul Teague’s recent blog. In it, he looks at the way CPOs can build credibility in the business through concerted stakeholder management. In it, he argues, empathy is a key trait for buyers to secure success. But I wonder: is this a good use of company resources?
In Procurement Leaders’ 2014 Category Planning Guide, we asked buyers as to their stakeholder preferences. These are the ...
Even though the global auto industry hit record production numbers in 2012 (despite the European vows) and is poised to repeat the same in 2013, automotive supplier merger and acquisition (M&A) activity is significantly down from 2012 and 2011 levels. PwC estimates that about 180 auto supplier transactions will likely close this year globally, down from almost 303 back in 2011.
Consolidation in the Global Automotive Supply industry, in its sixth consecutive year, is based on financial, operational, and strategic data collected by a global team of automotive experts representing all of the major automotive markets.(Read Full Article)
Inflationary times are back, economic growth is slow, the job-situation hasn't improved much, employers would rather keep a job vacant nine years waiting for the perfect candidate over spending even a single dollar on training, and CFOs are being told to put pressure on Procurement to cut costs to the bone. In other words, despite all the talk in recent years about training, innovation, and value-generation, it's still business as usual at review time.(Read Full Article)
Consuming research is one thing, the real skill is to understand how it impacts procurement and your business.
Among the common traits of CPOs is that they are voracious consumers of statistics and research. They have to be in order to keep abreast of new developments and trends that may affect the way they do their jobs. The more research the better, not only for the knowledge it imparts but also because it can provide early warning of changes in the economy.
How do the best buy marketing services? Paul Snell asks the experts and pioneers in this spend category to share their secrets. After knocking on the door for some time (and in some cases forcing the way through), procurement’s involvement in marketing is picking up momentum. A recent survey by FindGood found 42 per cent of companies now use procurement when selecting a marketing agency. And figures from the US Association of National Advertisers revealed 82 per cent of companies use procurement to review agency compensation, up from 56 per cent in 2010.(Read Full Article)
E-procurement software provider SciQuest has bought competitor CombineNet in a $43 million (£27.5 million) deal. SciQuest said it acquired CombineNet because the company’s software represents “the best solution in the advanced sourcing arena”. Both firms provide cloud-based business automation systems for spend management, but CombineNet’s proprietary technology “optimises and evaluates complicated vendor bids and proposals” and allows scenarios to be run balancing facts including cost, risk, timing and value. It is primarily designed for Forbes Global 2000 companies. SciQuest said the deal would give the firm a tool that improves decisions for spend categories “that are typically ...(Read Full Article)
Procurement for restaurants is definitely given a new face with e-procurement. If you’re one of the restaurant owners who are now exploring the possibilities of e-procurement and would want to know more, you may want to read this article. But admittedly, the process of purchasing for restaurants is never easy. It’s full of paperwork, very time-consuming, boring, laborious, and very detailed. With this, procurement for restaurants is now being transformed into a much better system of efficient purchasing. The costs of production should be contained as the productivity rises. The prices of goods should be kept affordable for ...(Read Full Article)
Today, supply chain risk is recognised as a major threat to business continuity. A break in the supply chain can reduce a company’s revenue, cut into market share, inflate costs, or threaten production and distribution. FM Global has identified three steps that organisations can take to reduce their supply chain risk: Identifying critical suppliers is the first step towards understanding your exposure to supply chain risk.(Read Full Article)
Picture this. You are preparing for your next monthly supplier meeting and, although the latest performance data shows it has been hitting targets and it thinks it is doing a good job, the underlying belief in your organisation is the supplier is not performing well. How do you get beyond opinion to quantify this and gather the information you need to make a well-informed and fact-based decision about the future of the relationship?(Read Full Article)