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Articles in category: Sourcing
In March 2012, Hollard Insurance hosted a procurement conference with a primary focus on supplier management and cost controls. It was the start of their own reworked procurement strategy (officially launched in April 2012), designed and developed to ensure best service and to curb costs during the insurance claim settlement process. Now, a little over two years down the line, the procurement policy is paying off, says Arie de Ridder, Head of Claims for Hollard Broker Markets.(Read Full Article)
The Procurement Leaders Zurich 2014 Forum panel discusses the role and benefit of using big data within procurement.
Big data has many definitions, ranging from “unstructured” to “a lot of data” but the panel discussion on this very subject at the Procurement Leaders Zurich Forum defined it as “the moment when you have so many data points and systems that you cannot put it into one single system anymore”. So far, most of big data analytics has been seen on the sales side although we are increasingly seeing procurement applying it within their own function.
Here are some trends on ...
Innovation may require investment and progressive thinking but it gets the attention of the business and is a crucial step in maintaining a competitive procurement function.
Today the procurement function faces a longer list of tougher challenges than ever before. Long gone are the days when a CPO could get cost savings targets signed-off and then put his or her feet up.
As a two-year grace period soon expires, thousands of U.S. corporations are still scrambling to overcome severe obstacles to gather and authenticate a complex web of supply chain information to meet conflict minerals reporting requirements.
“In our analysis of Securities and Exchange Commission filings this year and through our detailed ongoing observations, far too many companies are severely lagging in getting commitments from suppliers to provide detailed information,” said Jess Kraus, CEO of Source Intelligence. “This is a huge obstacle, especially since we are fast approaching a key stage in Dodd-Frank – audited and verifiable reports on source materials.”(Read Full Article)
As we enter the final quarter of the year, CPOs will be budgeting new cost savings to be realised during 2015. But rather than focusing on strategic sourcing, they must turn their attention to taking control of their organisation’s maverick buying as a powerful source of new savings.(Read Full Article)
Not everyone has a knack for strong communication. We live in a technology-driven world where instant messages, emails, and text messages drive most of our conversations
We never used to think that much about risk in supply chains. Those were the days when most manufacturing was domestic or products were purchased from one or two international factories that we monitored closely. But oh, have things changed!
Now risk management is an important function within most supply chain organizations. Global supply chains have become longer, stretching worldwide; and with every stretched link comes the potential for a weak spot and additional risk of failure.
As a result, managing risk of failure in supply chains has become a hot topic. With events like 9-11, the Japanese tsunami, the ...(Read Full Article)
Procurement has a role in delivering value and smart cost reduction is about buying the products and services you need at a competitive price without exposing your business to risk or failure. If you are value driven, it goes beyond getting what is just cheaper, because cheaper in some industries could mean disaster. There’s a lot more to being a category manager than being a buyer – they need to take account of the consequences of their actions and recommendations.(Read Full Article)
I find it ironic that many organizations today look at supply chain risk from a unilateral perspective. The impact of natural disasters have repeatedly raised questions on organizations’ preparedness to tackle supply chain disruptions. Companies today look for geographical presence and spread of their key suppliers to ensure business continuity. But is that all a company should do to mitigate risk?(Read Full Article)
As companies pursue growth in an environment where operations risk is pervasive, and where supply chain risk has become a top priority, a robust risk management capability is key to designing and operating supply chains. A recent Accenture study of senior executives found that the majority believe supply chain risk management is important or very important.(Read Full Article)
Without contract lifecycle management (CLM) in the modern business world, numerous things can go wrong, including missed savings opportunities, heavy fines, costly litigation and broken relationships. Generally, CLM is the ability to ensure contractual obligations are met.(Read Full Article)
Total cost of ownership (TCO) analysis was popularised by the Gartner Group in the late 1980s to assist clients in quantifying the financial impact of deploying IT products. A decade later, McKinsey applied the TCO approach to asset intensive industries in South Africa(Read Full Article)
The cost of running a fleet of company vehicles continues to rise each month. These increases are driven by factors such as the deteriorating rand-dollar exchange rate and the ever-increasing fuel price. So procurement managers need to be aware of the ways in which their fleet costs can be better managed.(Read Full Article)
The financial impact of ineffective procurement in Africa, calculated as value leakage, is estimated at a “staggering” $31.5-billion for the continent and $24.9-billion for sub-Saharan Africa, a recent report by professional services firm KPMG has revealed.
Although the firm believed that the role of procurement in an organisation was becoming increasingly strategic, 73% of C-level executives polled during KPMG’s ‘Power of Procurement 2.0 Survey’ did not believe that procurement added real value.(Read Full Article)
E-procurement is constantly evolving – but its foundation of improving customer/supplier relationships and internal business processes remains intact.
According to CIPS, e-procurement is:
“The combined use of electronic information and communications technology (ICT) in order to enhance the links between customer and supplier, and with other value chain partners, and thereby to improve external and internal processes. E-Procurement is a key component of e-business and e-commerce.”(Read Full Article)
Every business faces risks - the probability of events occurring - that can or will present challenges to their operations. Risk management is the practice of using processes, methods and tools to identify the level of probability, and then manage the ensuing risks.
In practice, this means identifying in advance what can go wrong in relationships between buyer and supplier. Failing to do this means you will be under-prepared and get some unwelcome surprises.(Read Full Article)
The CSIR’s 10th Annual State of Logistics Survey for South Africa¹, released in May 2014, highlights progress made and areas for improvement in South African logistics. The survey’s results mirror Tech-Pro’s experiences in this increasingly specialised area of supply chain management, Tech-Pro tells SmartProcurement .
Subtitled ‘Bold Steps Forward’, the survey emphasises the growing importance of the South African logistics industry, particularly as modest economic growth continues.(Read Full Article)
Better supplier relationship management could significantly improve company profits, with "soft" benefits offered by suppliers worth more than the value achieved from price concessions.
OEM Profitability and Supplier Relations - which is based in part on data gathered over the past 13 years from the annual Working Relations Index Study published by consultancy Planning Perspectives - found the better the relationship an automotive manufacturer has with its suppliers, the greater its profits are.
It explained the relationship “quantifies the economic value of suppliers’ non-price benefits to the OEM”.(Read Full Article)
In support of Gauteng Premier David Makhura’s vision of a “radical transformation” of the provincial public sector, Gauteng MEC for Finance Barbara Creecy announced on Thursday that Provincial Treasury and the provincial Department of Transport (DoT) have agreed to pilot an open, transparent tender application process in the current financial year.(Read Full Article)
This is the perfect time of year to review sourcing strategies and remember what an important role they play when procuring hotel accommodation. The hotel market is fragmented and highly complex which means that many companies often lack the necessary analysis tools and benchmark information needed to obtain and negotiate an efficient hotel programme.(Read Full Article)
The market for supply chain management (SCM) software, maintenance and services posted another year of solid growth, generating $8.944 billion in 2013, including applications for procurement software. That represented a nearly 7.4% increase over 2012 revenues, according to Chad Eschinger, vice president of supply chain with research firm Gartner (gartner.com).(Read Full Article)
We all may be sick of hearing the phrases “the war on talent” or “the talent wars,” however, the very truth of contemporary contingent workforce management (CWM) dictates that talent is a primary focus for achieving core business objectives through temporary labor.
It’s no great secret that the CWM industry has been evolving for quite some time; a space that was once an afterthought before the economic downturn of last decade has now become a vital component of the average enterprise. In fact, Ardent’s latest research has discovered that this industry will grow by nearly 30% over the ...(Read Full Article)
Comprehensive Category Management
Spot buying individual categories at market lows or evening running reverse auctions at opportune times is not category management. And for that matter, neither is an event that covers the entire category. At this point you probably think that the doctor is losing it a little, because how could it not be category management if you are addressing the whole category?(Read Full Article)