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Articles in category: Manufacturing & Automotive
Cape-based engineering, procurement and construction company Sustainable Power Solutions and its subcontractor Renen Renewable Energy Solutions have completed the installation of a R17-million, 1 MW single-rooftop grid-tied solar plant on the roof of floorcovering manufacturer Belgotex’s factory, in Pietermaritzburg.(Read Full Article)
South Africa's Purchasing Managers Index rose to 52.4 in November from 50.7 in October as producers recovered from strikes in the car-manufacturing sector, a survey showed on Monday. Survey sponsor Kagiso Tiso Holdings said the outlook for the manufacturing sector was positive with most of the components of the index rising in November.
The employment category hit its highest level so far this year, highlighting producers' optimistic outlook for the next few months.(Read Full Article)
Japanese motor giant Toyota is set to make a major investment in its Durban manufacturing plant in Prospecton as it gets ready to start production of its new generation Corolla for the South African and export markets.
The head of Toyota South Africa Motors, Johan van Zyl, hinted about the investment this week on the company’s production of its millionth locally manufactured Corolla which rolled off the Prospecton production line last week.
But, Toyota South Africa officials were tight lipped yesterday about the investment plan, which they said would be announced only in January.
In procurement parlance the concept of preferred suppliers is far from new, but what about the preferred customer? While most organisations segment and rank their customer base to some extent, is there value in the buying organisation itself proactively seeking a preferred position with its suppliers? Increased attention being placed on supplier relationship management in corporate purchasing strategies and procurement software suggests this is so.(Read Full Article)
South Africa’s main steel maker, ArcelorMittal SA, saved R127m last year by spending R21m on energy-saving initiatives in 2011 and last year at its Saldanha Bay plant. The plant makes ultra-thin hot-rolled steel coil, which requires significant energy, engineering and technology inputs.
By introducing a world-class manufacturing programme optimising energy management at the facility it has gone from being one of Luxembourg-based steel maker ArcelorMittal Group’s highest-cost factories to one of its lowest-cost producers.(Read Full Article)
Purchasers must monitor their suppliers and build strong relationships if they want to avoid risks in procurement.
That’s the message from Jaguar Land Rover’s director of purchasing Ian Harnett, who was speaking at the ‘Resilience, sustainability, integrity and emerging trends – managing supply risk in the 21st century’ event. Harnett explained that the company looks at risk management on a regular basis because it demonstrates “certain things that you cannot ignore”. He explained that as the company has grown significantly over the past years........
.(Read Full Article)
China leads all emerging markets with 89 companies on the latest Fortune Global 500 list of the world’s largest. Yet it does not have a single representative on Interbrand’s list of the top 100 global brands. Also, while China’s outward-bound foreign direct investment (FDI) has grown from an annual average of below $3 billion before 2005 to more than $60 billion in 2010 and 2011, only one third of Chinese companies have seen international revenue meet expectations, according to Accenture.
To many skeptical consumers in developed markets, Brand China still means lower quality. As has been the ...(Read Full Article)
South Africa is getting its own back by setting the wheels in motion on a massive campaign to get citizens to buy locally manufactured goods. Trade and Industry Minister Rob Davies has appealed to the public to buy locally made products in order to help create jobs.
Speaking at the launch of the Buyback SA Campaign in Johannesburg on Tuesday, Davies said buying locally manufactured goods will go a long way towards job creation. The campaign is an initiative of the Department of Trade and Industry (dti), Manufacturing Circle and Proudly South African and includes an advertisement which will be ...
Transnet Freight Rail (TFR) has taken delivery of two new dual voltage electric Class 20E locomotives -- a month ahead of schedule. TFR on Monday received the first consignment of the locomotives, which it procured from Chinese manufacturer, China South Rail Zhuzhou Electric Locomotive (CSR ZELC).
The two locomotives are part of the five electric locomotives to be deployed in Transnet’s General Freight Business, with an additional four locomotives expected to arrive before the end of December this year. The locomotives, however, will undergo rigorous testing before their placement onto the rail network.
The Department of Trade and Industry has approved more than R3-billion in incentives for 436 manufacturing enterprises since the inception of its Manufacturing Competitiveness Enhancement Programme (MCEP).(Read Full Article)
Business confidence in the manufacturing sector remained shaky during the third quarter of the year and, amid an industry characterised by lingering labour disruptions and elevated labour costs, manufacturers shed a sobering 68 000 jobs over the three months, industry body, the Manufacturing Circle (ManCirc), revealed on Thursday.(Read Full Article)
Darwin’s quote of "It is not the strongest species that survive, nor the most intelligent, but the ones most responsive to change" has never been truer than in today’s business environment. Disruptive changes in technology, industry structures, business models, consumer preferences and global boundaries are altering the shape of every company. Some companies are thriving in this environment through ongoing innovation, whereas others are struggling to adapt.
Procurement can be a key driver of innovation if the right resources, processes, incentives and metrics are established.(Read Full Article)
Traditionally, procurement functions have utilised systems internally as a means of gathering intelligence about the markets they operate in, the financial state of suppliers and the price outlook of the raw materials they purchase. But they are now waking up to the greater possibilities and how they can help the business, which is bringing procurement closer to the rest of the business.
One company that has seen success in introducing a market intelligence system that draws on and manipulates information from the supply base is pharmaceutical giant GlaxoSmithKline (GSK).
Explore BDlive (Nov 12 2013) Preferential Procurement , Procurement Ethics , Supplier Diversity , Supplier Relationship Management , Manufacturing & Automotive , Public Sector , Transport & Logistics , Talent Management
Department’s "hard targets" for state-owned companies seen as alternative to mandatory "set asides" wanted by Black Business Council(Read Full Article)
Do you know what your suppliers think of you? The temptation is to assume that because a supplier is benefiting from your business, then it must think very highly of you indeed. These lofty thoughts are magnified as the value of contracts increase.
It’s simple really: $Xm contract = happy supplier; $X+1m contract = happier supplier. Unfortunately, as we all know, nothing in life is so simple. The reality is that suppliers work with many businesses, and will be supplying similar goods or services to competing organisations.
You’ve probably been sourcing or manufacturing in China for a while. At first, product quality was great, but little by little product quality has deteriorated. Your engineers have been to China, but fear of offending the Chinese has prohibited them from giving direct feedback.
Now you are considering taking your production elsewhere or shutting down the plant. But first, you want to give the Chinese one more opportunity to get product quality back on track. So how do you tell them without offending them and completely ruining the relationship? Westerners have open, frank discussions and freely express opinions. Chinese ...(Read Full Article)
Cereal manufacturer Kellogg’s aims to optimise its supply-chain infrastructure as part of a four-year plan to save up to $475 million (£294.92 million) a year by 2018. ‘Project K’ also plans to strengthen existing business in core markets, increase growth in developing and emerging markets, and drive an increased level of value-added innovation, the company said in its third quarter results.(Read Full Article)
Transnet intends investing R26 billion to expand infrastructure in the Eastern Cape the next seven years.(Read Full Article)
The Kagiso Purchasing Managers’ Index (PMI), which declined sharply to 50 points in September amid South Africa’s prolonged automotive-sector strike, recovered modestly to 50.7 index points in October, but remained below the average third-quarter print of 52.7.However, the medium-term outlook was more positive, with the index measuring expected business conditions six months hence rising by 10.4 points to 62.2 – its highest level since March 2012.(Read Full Article)
Temporary workers remain a key component of any business’s ability to be agile and adapt to meet customer demand. More and more businesses are realising that they need to operate in a manner which lets them flex their staffing levels and remain in financial control, while continuing to provide an effective product or service. However, continuous levels of poorly managed temporary worker usage can be costly, particularly when an organisation places high levels of reliance on agency staff.
By focusing solely on reducing supplier costs, many procurement and HR professionals underestimate the demand costs of recruitment.(Read Full Article)
While BMW decided to pull the plug on the plan to build its new 3-series model in South Africa due to labour strife, rival Mercedes-Benz has decided to do the opposite. Mercedes-Benz South Africa CEO Martin Zimmermann told visitors to the Johannesburg International Motor Show this week that his company would invest R3bn in producing the next generation C-Class in this country. The plan was likely to come to fruition next year.
According to Mr Zimmermann, this will create new jobs in the production line. He also announced that 10 new suppliers would be setting up shop in the country ...(Read Full Article)
Following the introduction of an enterprise incubation support programme by the Department of Trade and Industry (DTI) in September last year, the department has approved 30 applications, with a total investment value of some R817-million. Trade and Industry Minister Dr Rob Davies said in response to a Parliamentary question that the incubation initiative had approved 14 applications in the 2012/13 fiscal period and 16 in the current financial year, resulting in the creation of 19 546 jobs.(Read Full Article)
Trade and Industry Minister Rob Davies says the incubators, which have been identified as a way of nurturing small business, will create 19,546 jobs(Read Full Article)
South Africa’s motor industry must find a way to gain a competitive advantage other than low labour costs, according to National Association of Automobile Manufacturers of SA president Johan van Zyl.
Direct labour costs in South Africa were were 222 percent higher than in India, while indirect labour costs were 324 percent higher, Van Zyl told the Car Conference at the Johannesburg International Motor Show this week.
Van Zyl said indirect labour costs were not just the people who touched the metal but also the production engineers, support staff and maintenance people and also needed to be compared with ...(Read Full Article)