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Articles in category: Supplier Relationship Management
When is the best time to fire a non-performing service provider? Should we take action as soon as serious problems become evident? Once they’ve had a chance or two to sort out the issues (but have failed in those initial attempts)? Or only as a very last resort, after a lengthy period during which they can try to rectify errors? There are a number of key issues to be considered here.(Read Full Article)
In 2013, 80% of supply chain leaders had a material supply chain disruption. It was not just one. The average company had three. Yet, in a study that we just completed, when asked about business pain, supply chain risk rates low. How come?
It is new. It lacks a consistent definition and set of practices. Companies reward the urgent. Risk management requires a focus on the important. It requires leadership and orchestration. Teams don’t know what to do. The companies that are the most mature learned the hard way. They had a disruption.(Read Full Article)
Many organisatations have made use of the famous Kraljic model. Our recent strategy report summarises some of the key learning points leading organisations have experienced
One of the most successful ideas in procurement is the model proposed by Peter Kraljic in 1983. In his article ‘Purchasing must become supply management’, the writer called for a more intelligent way of managing an organisation’s buying. As a part of his key message, Kraljic stated that placing procurement in the heart of the business is based on a understanding of the supply base and how the capabilities of vendors can best align ...
Have your supplier relationships gone flat? Has the initial excitement fizzled out? 10 experts share their top tips to put the spark back into your partnerships.
Picture the scene: With the ink not yet dry on the contract, the enthusiastic purchaser and eager, hungry supplier get ready to celebrate the start of a burgeoning relationship. What could possibly go wrong? But leap forward a few years, and all is not well. Targets have been missed, innovation has stalled, and there’s an atmosphere of distrust between the two parties.
Sometimes, relationships with suppliers simply need freshening up, often as a ...(Read Full Article)
LONMIN on Thursday became the third platinum company to be forced to tell some of its suppliers it is no longer able to pay them as the strike at platinum mines near Rustenburg enters its 11th week, making it the most damaging strike in South Africa’s democratic history.
Anglo American Platinum (Amplats) and Impala Platinum (Implats) have declared force majeure to some of their suppliers as affected operations have been at a standstill since the Association of Mineworkers and Construction Union (Amcu) called a strike over wages on January 23.(Read Full Article)
The phrase “the customer is king” is well known, you don’t hear words like this when procurement people talk about suppliers. It is no coincidence that companies that really value their customers also treat their suppliers well.
Influencing and persuasion skills are competencies that both procurement executives and their stakeholders need to develop to be successful in creating fully workable supplier relationships.(Read Full Article)
Leading companies often take advantage of a powerful source of competitive advantage, employing preferred relationships with their suppliers. It is widely recognised that these customers receive preferential treatment from their suppliers in two important ways.(Read Full Article)
Trade and Industry Minister Dr Rob Davies has decided to extend the transitional period for the recently revised Broad-Based Black Economic-Empowerment (B-BBEE) codes of good practice to the end of April 2015.(Read Full Article)
In a big move to revitalise South Africa’s rail system, Transnet has awarded a R50 billion contract for the building of 1 064 modern and technologically advanced locomotives.
There’s a right way and a wrong way to do everything. On the surface, at least, it appears that Boeing may be reducing supplier costs the wrong way.
Last spring, Boeing told suppliers if they didn’t reduce pricing and waste they would go on a "no-fly" list, barred from bidding on new programs the company may develop. In sports parlance, that’s called playing hard ball, and while the intimidation may work initially, it may not be good in the long run - either for Boeing or suppliers. Parties making such threats can lose credibility, and not just if ...(Read Full Article)
Trust and honesty is probably the biggest part of building relationships with suppliers and key to successful negotiation. For example, at the CIPS Negotiation Challenge final last week, one of the judges Brian Davy, indirects purchasing director at Jaguar Land Rover, advised students to “let your personality come out and be trustworthy”. He said the winners were regarded as honest and trustworthy by other groups in the competition.(Read Full Article)
A supplier of generic medicines in Cape Town says pharmaceutical companies’ objections to draft legislation to amend patent laws boils down to their fearing losing their monopoly.
Cape Town - A supplier of generic medicines in Cape Town says pharmaceutical companies’ objections to draft legislation to amend patent laws boils down to their fearing losing their monopoly.(Read Full Article)
The special Economic Zones Bill aims to support a broader-based industrialisation growth path, balanced regional industrial growth and the development of more competitive and productive regional economies with strong up and downstream links in strategic value chains.
Adoption of this bill will be a significant milestone in pursuit of the aspirations expressed in the National Development Plan (NDP), New Growth Path (NGP) and Industrial Policy Action Plan (IPAP).
SEZs are defined as geographically designated areas of a country set aside for specifically targeted economic activities, supported through special arrangements and systems that are often different from those that apply in ...(Read Full Article)
The report from relationship charity OnePlusOne found that 15 per cent of people went as far as to say they are “very unhappy”. This may be the case in personal lives, but what about in a business environment? Are your suppliers happy with the relationship they have with you? Jaguar Land Rover Head of purchasing Ian Harnett often spends time with his suppliers asking what’s important to them.(Read Full Article)
Impasse or deadlock in negotiations is a condition or issue that neither side seems to be able to agree on and it can bring the entire negotiation to a grinding halt.(Read Full Article)
-->There is a wealth of published information available about how to manage the commercial and technical content of supplier negotiations but little focus is given to how to handle the behavior of the participants, on both sides of the table.(Read Full Article)
A year on from the horsemeat scandal, more than 80 per cent of large food manufacturers say the incident made no difference to how they manage information about their suppliers.(Read Full Article)
We all want to be at the top of our industry. To achieve that we are today just as dependent on exceptional supplier relationships as we were fifteen years ago. It as become a lot easier yet still only a few organisations get this right. Consider the example of how Honda and Toyota started dominating the US auto market in the nineties. Applying these principles are just as valid now but more achievable through the communication habits and tools at our disposal today.(Read Full Article)
Local content is a policy tool used by some countries to create jobs and develop local supply chains to become internationally competitive. Local content requirements usually include a combination of mandates to investing companies to develop and employ local people, to procure local goods and services, develop local suppliers and to transfer technology through licensing arrangements, joint ventures, training or other means.(Read Full Article)
Due to the complexity and inter-dependencies of these megatrends and the diversity of affected countries, markets and companies it’s difficult to assess the impact on procurement but leading procurement managers foresee major changes in a couple of focal areas within the next decade.(Read Full Article)
After 15 years on the front line in procurement, the common mistakes suppliers and their sales people make when dealing with buyers continue to amaze me. Here are the top five mistakes that suppliers and their sales teams should avoid if they are to win over buyers. 1. Get our names right! I have lost track of the amount of times I have been called William when people are sending me e-mails, letters or phoning me.(Read Full Article)
In its single-largest contract for services or goods to date, freight logistics group Transnet has announced the awarding of a five-year, R15.5-billion fuel supply deal to nine black and women-owned companies.
Following a “rigorous, open and public” bidding process overseen by a committee of the board of directors, Afric Oil, Borutho Gas Supply, Gulfstream Energy, KZN Oils, Mzumbe Oil, NRW Trading & Logistics, Tlhokaina 21, Women Of Africa Fuels & Oils and Yem Yem Petroleum were contracted to service the parastatal’s fuel requirements over the next half-decade.
Speaking at a media briefing on Thursday, Public Enterprises Minister Malusi Gigaba said ...(Read Full Article)
"I’ve seen few companies that would invest the time and trust in developing such strategic relationships with their suppliers but the ones that do, realise long-term sustainable business benefits.” Given the last statement from Santosh Nair of GEP regarding an organisation’s ability to identify, cultivate and then ultimately sustain the strategic relationship developed between a buying organisation and a supplier, is one for close scrutiny and consideration.
In order to reach its maximum effectiveness and benefits between two companies, innovation must be rooted in agreed executive working principles, shared responsibilities, open transparency, shared risk/reward and finally commitment ...(Read Full Article)
It’s widely accepted that small and medium-sized businesses (SMEs) make up the lion’s share of the South African economy, and that Government has shown a clear commitment to helping them grow, to keep economic benefits of contracts within the country.(Read Full Article)