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Articles in category: Manufacturing & Automotive
The Department of Trade and Industry (DTI) aims to improve the enforcement of localisation by having the Auditor General flag as “irregular expenditure” any flouting of buy-local procurement rules by government departments and State-owned companies.
Preferential Procurement Policy Framework Act regulations came into force on December 7, 2011, empowering the DTI to ‘designate’ the products that should be sourced locally.(Read Full Article)
Gaining cost transparency is a critical aspect of any negotiation or category planning exercise. It is understanding which cost drivers can be influenced by procurement that informs us which lever should be applied and whether or not the objective is cost reduction.
Achieving cost transparency for physical products can be achieved by teardowns aimed at identifying the type and quantity of raw materials and components – often a lengthy process, but a reliable route to better understanding the underlying drivers of cost.(Read Full Article)
Drawing from the results of a quantitative research study conducted by Spend Matters and the Institute of Supply Management, this two-part report discusses why meeting demand requires Supply Management 2.0: fluid collaboration between companies and their external network partners in a multi-tier and multilevel fashion that orchestrates both process and information silos.(Read Full Article)
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)
ACTIVITY in the manufacturing sector improved last month as workers that had gone on a month-long strike returned to work, an industry indicator showed on Monday.
The Kagiso purchasing managers’ index (PMI) rose 3.1 index points to 49 last month from 45.9 in July.
Despite the improvement, August marked the fifth consecutive month of contraction in activity. The index needs to be above 50 to indicate that activity in manufacturing is expanding.
The below-50 reading suggested that "conditions in the factory sector are still relatively subdued", head of research at Kagiso Asset Management Abdul Davids said.(Read Full Article)
Nissan has said that its new Y62 Patrol, now redesigned with an unprecedented zest and ergonomics, has returned with a futuristic look that stands out for its unique combination of the most recent technologies and new design DNA.
The auto maker noted that the new Y62 Patrol, assembled in Nigeria by Stallion NMN plant in Lagos, epitomises Nissan's tagline: 'Innovation that excites.'
It also noted that President Goodluck Jonathan had acknowledged the beauty and adroitness of the made-in-Nigeria Y62 Patrol when he, in company of some government officials, took delivery of the Patrol in Abuja on Democracy Day(Read Full Article)
Government is committed to protecting the country’s clothing and textile sector which has shown growth in recent years, says the Department of Trade and Industry (dti).
This as employment in the footwear and leather sector showed growth of 5% between 2012 and 2014.
“What we've actually seen is that this industry to a high degree has stabilised,” said Minister of Trade and Industry Rob Davies, adding that through the Competitiveness Improvement Programme R645 million was contributed the sector.
Buyers have backed the use of charters that set out the “rules of engagement” in supplier relationships, according to a survey.
The SM Jury voted by eight to four in favour of charters, with members saying they promoted ethical behaviour and improved supplier relations.
Cristian Martin, procurement and contracts officer at the Commonwealth Secretariat, said: “It is important for suppliers to understand what standards your process is aligned to; everyone understands what everyone’s rights are. If you are not aligning to a standard, a charter would help suppliers understand your process better.”(Read Full Article)
The Veeder-Root Company has acquired FuelQuest, Inc. Located in Houston, Texas, FuelQuest is the recognized Software as a Service (SaaS) provider for retail and commercial fueling logistics applications. With over 15 years of experience in logistics software development and analytics, FuelQuest will combine with Veeder-Root's Insite360 Fuel business to provide a best in class, end-to-end solution for controlling wet stock from rack to nozzle.
The acquisition demonstrates Veeder-Root's commitment to supporting retail and commercial fueling customers' desire for increased control of their fuel purchases, deliveries, variance, flow, compliance and managed maintenance needs.(Read Full Article)
While effective supply chain risk management programmes recognise things don’t always go according to plan, they also aid businesses build a more resilient operation in response.
The risks of supply chain disruptions aren’t limited to first tier suppliers and customers. The ability to access information from every part of the trading network in real-time can help businesses identify and anticipate risks, as well as inform the range of decisions needed to mitigate them. That visibility fuels the approach behind collaborative planning and execution.
Here are three ways to improve risk management across a company and its trading partner ...(Read Full Article)
It means that the hundreds of thousands of farms that supply Nestlé with its dairy, meat, poultry and eggs will have to comply with tighter animal welfare standards. Nestlé said it is the first major food company to form an international partnership with an animal welfare NGO.(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)
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 Passenger Rail Agency of South Africa has signed a R51-billion order for 600 new trains. However, all of these trains will not be delivered at once, which means Prasa’s refurbishment programme will have to run another 15 years. Irma Venter visited CTLE, where some of the coaches are being refurbished.(Read Full Article)
Oil firm Sasol is working to increase the number of local firms in its Mozambican supply chain, a conference was told. Benjamim Cavel, local content manager for Sasol in Mozambique, said the company had to “lead by example” and it was working with local suppliers to bring them up to the level where they can compete with multinationals.
Embattled telecommunications giant Telkom is eyeing significant procurement cost cuts as part of actions to return the group to sustainability. In the 2014 financial year, Telkom spent roughly R17-billion with suppliers, chief procurement officer Ian Russell said at an investor presentation earlier this week.(Read Full Article)
AsiaInspection, a global provider of quality control services for businesses importing from Asia, Africa, Southern Europe, and Latin America, maintains that supply chain managers should pay more attention to risk irrespective of region.
The Hong Kong-based consultancy has just released its 2014 Q2 Barometer, a quarterly synopsis on outsourced manufacturing and quality control indicating that supply chain transparency is far from adequate nearly everywhere in the emerging markets matrix.(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)
Despite crippling industry-wide strikes, uneasy foreign exchange rates and an uncertain post-election period, the building industry in South Africa is on the mend and is showing signs of recovering beyond several analysts’ expectations, Aggregate and Sand Producers Association of Southern Africa (Aspasa) director Nico Pienaar has asserted.(Read Full Article)
ACTIVITY in the manufacturing sector fell for the fourth consecutive month in July as a strike by metals and engineering industry workers limited production.
This was suggested by the Kagiso purchasing managers index (PMI), which indicates activity in the manufacturing sector. The index, released on Friday, fell to 45.9 in July from 46.6 in June — remaining below the desired 50 level.(Read Full Article)
A CASE study on South Africa’s aluminium sector has found that BHP Billiton’s special pricing agreement for its Bayside and Hillside smelters in the Richards Bay industrial development zone has now cost Eskom R11.5bn.
The parastatal’s huge deficit has significant import for industrial policy development in South Africa as a function of cost-benefit analysis in respect of the relative benefits of "state-led" or "state-facilitated" economic growth.(Read Full Article)
SAPPI’s share price fell 5.37% to R40.69 on Thursday despite the pulp and paper products group indicating it was on track to report a profitable 2014 financial year, as lingering debt worried the market.
The group has made $67m profit in the first three quarters of its 2014 financial year, from a $161m loss last year. In its third quarter ended June, Sappi’s net profit was $17m, the company reported on Wednesday.(Read Full Article)
Nampak, Africa's biggest packing firm, is considering doubling the capacity of its Nigerian beverage can factory to meet its fast-growing demand.(Read Full Article)
South African businesses have been called on to take advantage of opportunities in Angola.
A South African business delegation is in Angola at the Feira Internacional de Angola (FILDA) trade exhibition in Luanda.
“Energy, water, construction materials, telecommunications, chemicals, mining and distribution are all projects where foreign investment is needed,” said Joao Rocha of Termat Comecio Geral, a company that is on a mission to attract and promote South African goods and services in Angola.
Rocha was addressing the South African business delegation at FILDA on Sunday. The delegation of 27 representatives is participating in FILDA with the assistance of ...