Invoicing & Payment,
Spend Analysis & Benchmarking,
Supplier Relationship Management,
B2B Social Media: Online Supply Communities, Open Innovation, SM B2B Marketing, SM Customer Driven Support
Industry Groups: Construction, Defence & Aerospace, Education, Financial Services, Healthcare, Manufacturing & Automotive, Public Sector, Resources, Retail & CPG/FMCG, Utilities
Categories / Commodities: Business Travel, Capital Equipment, Construction & Building, Electronic & High Tech, Fuels & Lubricants, Managed Print Services, Marketing & Advertising, Metals & Minerals, Office Suppliers, Services Procurement, Supply Chain Management, Transport & Logistics
Procurement People: Careers, Leadership, People on the move, Talent Management
Articles in category: Value creation
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)
Recent research from The Hackett Group claims that procurement’s ability to generate big savings is declining dramatically. Despite what you might think, that’s good news.
It’s not that savings are unimportant. Of course, they’re important, and they always will be. They are a large part of what organizations expect from procurement. But, as every CPO knows, they aren’t the only things procurement can provide.
For example, in manufacturing companies, procurement can identify suppliers who can suggest alternatives to new product designs that can accomplish the design intent more cost effectively.
(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)
Comparing public and private sector procurement practices isn’t an easy thing to do; both sectors operate in such different ways, with so many variables that it’s hard to conduct a like-for-like assessment.
Procurement technology is one of those points of difference. Private firms are eons ahead of their public sector counterparts in terms of processes like predictive procurement, smart data and real-time collaboration. However, there is good reason for this. The disparate nature of many public organisations means that, both structurally and culturally, it’s tough to integrate systems and gain compliance from staff around digital procurement.
One ...(Read Full Article)
There is still time to share your procurement and supply chain organization's success. The 10th Annual Institute for Supply Management® – Michigan State University Awards for Excellence in Supply Management is open for submissions. The annual competition is designed to further the understanding and importance of supply management by recognizing supply management organizations that demonstrate innovation, leadership and best supply management practices. Entries are due August 22, 2014.(Read Full Article)
Science and Technology Deputy Minister Zanele kaMagwaza-Msibi says her department will invest more in research and innovation to ensure that the country produces more scientists and engineers.
Speaking to SAnews shortly after briefing Parliament's Portfolio Committee on Science and Technology on Wednesday, the deputy minister said these areas needed special attention to ensure that the country moves towards improving the lives of people by investing in the knowledge economy.(Read Full Article)
Historically, AP and procurement teams have operated in business silos; each responsible for certain parts of the procure-to-pay (P2P) process, but rarely cooperating as true teammates. Perhaps it’s because they come from two different worlds (one financial, one more operational), frequently leverage different technologies and solutions, often have different priorities for the organization, measure success differently, and report to different bosses that they don’t collaborate more than they do. But the fact is that they should – they co-manage a single process and can both benefit from greater collaboration(Read Full Article)
It makes no sense to waste your time and valuable resources on unprofitable and unreasonable customers.
My students were desperate for strategies and tactics to help them out of these “price reduction only” discussions with their customers and broaden the conversations. We worked hard to develop some effective strategies for negotiating with buyers and bullies who focus on price only. These include:
1. Every time a customer asks for another price reduction, suggest trading for something in return. Ask for something of value back such as move volume, another division, another project. Never concede, always trade.(Read Full Article)
2. Keep opening the ...
Having the right frame of mind and utilising data and facts are two of the key ingredients for successfully driving transformation. Speaking at a CIPS member event in London last week, Toby Munyard, partner at procurement consultancy Efficio explained the six elements of effective change management. These were:
Data and facts. “This is probably the one thing that gives you an ability to be able to have a discussion,” said Munyard.(Read Full Article)
The procurement function of the Renault-Nissan Alliance generated €1.036 billion (£824 million) savings in 2013.
Purchasing, which is jointly managed by the Renault-Nissan Purchasing Organisation, was the biggest contributor for cost reductions, cost avoidance and revenue increases last year.
Overall, the Alliance posted record “synergies” of €2.87 billion (£2.3 billion) in 2013, up from €2.69 billion (£2.1 billion) in the previous year. It explained that only new synergies – not cumulative synergies – are taken into account each year.(Read Full Article)
IF THE private sector is to invest more, the public sector must start delivering on its own investment programme.
As President Jacob Zuma reminded us in his recent state of the nation address, the public sector has spent more than R1-trillion on new infrastructure over the past five years, and it has committed to spend a further R847bn over the next three years.
In theory, that should be lifting constraints on growth and encouraging private businesses to start investing to expand their own enterprises.(Read Full Article)
The Mpumalanga provincial government is expected to create 390 000 additional and sustainable work opportunities by 2019, says Premier David Mabuza.
“Over the next five years, we will target economic growth that is above 5% per annum and such economic growth will be expected to create approximately 390 000 additional and sustainable work opportunities by 2019,” he said during his State of the Province Address, on Friday.(Read Full Article)
France will be making a sound investment by taking a stake in Alstom, its chief executive said on Monday, adding however that the government would be buying in too late to have a say in the use of proceeds from its tie-up with General Electric.
France won an option to buy 20 percent of Alstom from conglomerate Bouygues on Sunday, in an eleventh-hour deal clearing the way for the agreed sale of most of Alstom's energy business to GE.(Read Full Article)
SPENDING a week recently in the US city of Bentonville, Arkansas, to attend Walmart’s shareholders’ meetings, underscored why the company’s investment in South Africa three years ago when it bought a majority stake in Massmart (which I now chair) was a resounding vote of confidence in South Africa that ought to be leveraged to the maximum.
To give a sense of what the investment meant, consider that Walmart is the largest single company on the planet.(Read Full Article)
The South African options for consulting in procurement and supply chain are expanding steadily. The latest entrant, Xoomworks, recently announced taking a foothold in the African market through the establishment of Xoomworks South Africa. The new consulting practice was created in conjunction with Gauteng-based The Supply Chain Partnership. In a market where the pool of procurement and supply chain talent is constantly under pressure, this new addition is good news for procurement organisations targeting large transformation initiatives or strategic sourcing events.(Read Full Article)
President Jacob Zuma placed the growth-sapping issues of labour instability and electricity insecurity at the centre of his post-election State of the Nation address to lawmakers on Tuesday night. He also used the platform to announce a series of new interventions, ranging from a study into the institution of a minimum wage, through to the development of better housing in mining towns and the creation of a Cabinet subcommittee to tackle the country’s energy challenges.(Read Full Article)
It’s time to get direct about indirect: businesses are leaving millions on the table. Indirect spend can represent up to 20-30% of revenues and you can expect to save 10-30% on spend through ’excellent’ procurement, but this requires the right mix of technology, people and processes.
In order to make the most of this opportunity, teams need to step up in these areas:
The focus with indirect procurement is often on procurement technology. Yet, there’s another, deeper level of specialized category tools that can provide an even stronger level of savings and quality service opportunities. Companies must ...(Read Full Article)
In this latest in a series of posts, Procurement Leaders once again invites Ernst & Young’s Carlos Alvarenga to evaluate what might be some of the key levers for the function, a decade in the future.
The last 10 years have seen the rise of two seriously disruptive, and deeply related, social phenomena. The first is the arrival of social technologies, such as Twitter, Facebook and the iPhone. The second is the decreasing importance that most people (but especially the under-20s) are placing on personal and institutional privacy.
Business leaders surveyed by AT Kearney, the global management consultancy, have more confidence in South Africa as an investment destination than they do in many western European countries and emerging powerhouses like Chile and Malaysia.
One reason is Pretoria's much lauded renewable energy program which in the view of London-based risk analysts IHS has made South Africa "the world's most attractive country for solar energy" investment. Since late last year, a growing parade of solar and wind power projects has begun feeding hundreds of badly needed megawatts into South Africa's national grid.(Read Full Article)
Why does procurement struggle with its visibility or status in the organisation? There may be many reasons. The procurement function may have:
• not aligned itself with the organisation’s strategy and goals;
• not identified its most important stakeholders;
• not taken relationship building seriously; or
• failed to establish its identity and credibility through results.(Read Full Article)