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Articles in category: Value creation
Will this be the year procurement finally evolves from its “cost center” image to one that will gladden the hearts of corporate CFOs worldwide? Researchers at the IBM Institute for Business Value (IBV) think so, and present a compelling argument that change in perception is well underway.
In “The journey to value – Transforming procurement to drive the enterprise agenda,” IBM reveals how it worked with The Economist Intelligence Unit (EIU) to obtain management feedback on the current state of procurement. While most of the answers were hardly startling, a new pattern is clearly emerging in the global marketplace(Read Full Article)
Pretoria - South African and Indian companies should take advantage of the growth and economic development in each other’s countries, says Trade and Industry Deputy Minister Mzwandile Masina.
“There are great opportunities offered by both countries to be explored in manufacturing, agriculture and infrastructure development. Telengana, as a new state, has a massive infrastructure plan that our companies could take part in and collaborate with the local Indian companies,” said the Deputy Minister.
CPOs are contributing real value to the organization. Is this really true?
If a new CPO study from IBM’s Institute for Business Value is to be believed, it’s actually starting to happen. The firm surveyed just over 1,000 companies – a sampling that was exceeded only by IBM’s study from the prior year, according to author and research lead Steve Peterson. All of the respondents were companies with annual revenues of $1bn or more.
Project management methodologies are built upon structures that review and report progress, provide direction and represent the business. By establishing an organisational structure, with senior management representation and a governance board effective management of the procurement activity in line with the corporate expectations is enabled.(Read Full Article)
Zimbabwean entrepreneur Vuyo Sakala has always dreamed big and wanted to develop and provide great products and services for Africa. After studying Architecture in Australia, and noticing the lack of information he had access to about what was happening back home in Zimbabwe and the rest of the African continent as a whole, he came up with the idea of designing and building five regional information portals that would cover the continent; one each for north, south, east, west, and central Africa.(Read Full Article)
Procurement is often a company’s biggest cost item, in some industries accounting for as much as 80% of total costs. And it is often one of the first areas companies target for cost savings. However, when companies set out to gain those benefits, they often find themselves face to face [...](Read Full Article)
- Over the past few years, we have witnessed an ever-growing trend, in which large FMCG brands attempt to generate savings through aggressive procurement policies. In the marketing industry, this means 'pitching out' design projects to as many agencies as possible.
This may seem sensible when dealing with an apples-for-apples comparison of hardware, or a measurable service, but there are a number of good reasons why pitching out creative design will eventually destroy your brand.(Read Full Article)
[This Day]Promoters of the SmartCity Innovation Hub technology project have promised to create 50,000 direct employments in the next five years. The hub is designed to promote economic diversification and to move the country towards a knowledge-based economy.
The project is a bold move to bring together technology, government and society in ways that promote the culture of innovation and the competitiveness between allied businesses and knowledge-based institutions.(Read Full Article)
Trade facilitation, defined as the simplification and harmonisation of international trade procedures with the objective of minimising obstacles to the movement of goods across borders,(2) is high on the global trade agenda.
The elimination of trade restrictions in the form of institutional and regulatory reform and improved customs and port efficiency is particularly pertinent to the African region, which, though relatively open with a trade-GDP ratio of 55.7% in 2009, currently accounts for a paltry 3% of global trade.(Read Full Article)
There’s a right way and a wrong way to do everything. Bullying suppliers into slashing their prices, as alleged in this report last week, is the wrong way to control costs. While the report concerns a UK company in the retailing industry, the practice of bullying is in no way restricted to that industry or country. US automotive manufacturers were notorious in the past for their hardball tactics with suppliers, though today they see the value of collaboration. Some miners in North America were bringing heavy pressure on suppliers to slash prices last summer.(Read Full Article)
"Savvy” procurement saved the BBC more than £70 million on goods and services this year, a report into the broadcaster's efficiency has stated. Total category spend of £655 million across 11 ...(Read Full Article)
Does your procurement/supply management department have a truly strategic role in your company? Does it get invited EARLY on new initiatives, new projects, acquisition evaluations, new plant sites, etc.? Or, is your department generally involved at the stage when some paperwork needs to be taken care of?(Read Full Article)
ONE of the country’s most experienced corporate leaders, Mark Lamberti, says South Africa’s problems are structural, not cyclical — and turning things around will take time.
The CEO of Imperial Holdings, the R100bn-a-year logistics and industrial services company, is determined to be optimistic about South Africa’s chances no matter what — and walks out of dinner parties if the talk is too downbeat.
But, he says, urgent action is required. If the government does not “hammer away” at the National Development Plan(Read Full Article)
The who’s who of African procurement descended on the Premier Hotel OR Tambo on 30 October for the CIPS Pan African Procurement Awards 2014. The prestigious annual event is run by The Chartered Institute of Procurement and Supply (CIPS) and in association with State Owned Enterprise Procurement Forum (SOEPF).(Read Full Article)
Think of the exorcist: I bet what you come up with is a far cry from the corporate world of suits and boardrooms. But when we talk of a function undergoing somewhat of a transformation, the strange parallels become clear.
80% of banks now partner with current suppliers for innovation, according to the latest Innovation in Retail Banking study, put together by Efma and Infosys, and the growing presence of start-up partnerships in the supply chain is now well documented.
Leading company procurement organizations reap double the measurable cost reduction versus other companies, while also driving competitive advantage through supplier-driven innovation and risk management. While procurement organizations for leading companies have continued their upward trajectory, most companies only sustained the gains they made between 2008 and 2011.
These findings were reported in a study released today by A.T. Kearney titled “Procurement Powered Business Performance: Assessment of Excellence in Procurement (AEP) Study 2014.” This year’s AEP is the eighth edition in a series that started in 1992.
.(Read Full Article)
It is generally accepted that efficiency represents the optimal, aspirational state for any market. Efficient markets, which feature many buyers and sellers and perfect information flowing between them, determine the “right price” and hence allocate society’s resources optimally.
Those are indeed positive features. But every good thing is like a face caressed by the sun. The rays that light and warm the face automatically cast a dark shadow behind it. The shadow of an efficient market is increased price volatility — quite the opposite of what we expect from efficient markets.
Think about how markets evolve. We’ll take the ...(Read Full Article)
Bill & Melinda Gates Foundation and Grand Challenge Partners Commit to Innovation with New Investments in Breakthrough Science
Seattle — A consortium of partners including Brazil, Canada, India, Norway, South Africa, the United Kingdom and the United States will fund a new phase of Grand Challenge initiatives.
At an event in Seattle commemorating the tenth anniversary of Grand Challenges, a group of international partners today announced three new initiatives aimed at creating breakthroughs in science.
This anniversary event, attended by scientists and researchers from around the world, celebrates a decade of progress since the Bill & Melinda Gates Foundation's launch of the initial Grand Challenges in Global Health initiative. This original US$450 million research initiative was created to ...(Read Full Article)
It seems as if this represents a real change from it being a privilege to do business with Unilever to it being a privilege for Unilever to do business with suppliers, especially those who share your values and commitments.
Read this inspiring interview with CPO Dhaval Buch where he discusses Unilever’s strategic approach to supplier relationship management and it’s Sustainable Living Plan.
A study conducted by AT Kearney, the Institute for Supply Management (ISM) and CIPS found leading teams generate almost £1 million in financial benefits per procurement employee each year. Building the ...(Read Full Article)
The winners of the CIPS Supply Management Awards 2014 were announced on 11 September. The even took place at the Grosvenor House Hotel, Park Lane, London.
Take a look at the category winners and runners up.
The challenge of ensuring adequate, nutrient-rich food for an expanding global population is a daunting one, especially given constraints on key resources like water and agricultural land.
As it stands, the two leading approaches to enriching and enlarging the world's food supply are genetic engineering and industrial processing with additives and chemicals. Now, a third solution is emerging: vertical farming.
Academic studies have found that locally cultivated vertical farms - stacked greenhouses that use artificial light to grow crops - can provide considerable savings, which could then be passed along to consumers. But questions about such farms' fundamental economics, especially for ...(Read Full Article)
Relationship management is the primary skill missing from procurement teams, according to a survey.
More than half (60.3 per cent) of the 120 purchasing professionals surveyed by ProcureCon Europe, cited it as a skills gap in their organisation, followed by risk analysis (51.7 per cent), and supply chain analysis (39.7 per cent).
The poll emphasised the importance of building relationships in order to achieve sustainable success, not only internally with stakeholders but also externally with suppliers.
Roger Davies, group head of procurement at Marks & Spencer, told the survey that relationship management and influencing skills were core to ...(Read Full Article)
The head buyer at Telkom has said he will be working with core suppliers in a “collegiate” way to cut costs by “as much as possible”.
Ian Russell, who has been CPO at the South African telecoms firm for six months, said in the past the company had “tactical and transactional” relationships with suppliers but he wants to treat them “more thoughtfully and carefully”.
In the last financial year Telkom spent R17 billion (£961 million) with around 2,400 suppliers, but 80 per cent of that spend was with 23 suppliers. Total revenues in the period were R32.5 billion ...(Read Full Article)