The average purchase prices for standard desktop and laptop PCs recorded by Purchasing Index in their continuous quarterly PC benchmarking service. The graph shows that the cost of PC technology in RSA has continued to drop far quicker than the Rand has strengthened against the Euro and US Dollar. In addition the specification for the […]
PC Prices drop faster than the rand strengthens Read More »
During the last month the prices of paper and envelopes have echoed the trend since September 2005. As a result prices are almost 15% lower than this time last year. (Based on last year’s prices.) But this is not the whole picture… Since the producer price index gained about 6.5% over the period, the real
Stationery Prices continue downward trend. Is there still scope to negotiate? Read More »
“The information was correct, but the interpretations were not…” I was sincere in everything I said, even just before the fall of Baghdad international airport.” Famous last words from the Iraqi information minister. But how about providing accurate, actionable information from your procurement information systems…. Or as some would say procurement miss-information systems. Organisations know
Data everywhere, information scarcer than honest politicians! Read More »
Department X (names have been changed to protect the innocent 🙂)was very vocal in criticizing the prices a local Shared Services department achieved on a centrally negotiated supplier agreement. This happened recently at a South African financial sector company where Purchasing Index had been providing benchmarking services to the Shared Services department for some years.
Critiscism of procurement performance : Can benchmarking provide answers? Read More »
Purchasing Index operates in South Africa, the United Kingdom and Australia: PISA involved on four levels with its clients: Benchmarking the cost of specific goods within agreed parameters common to participants Aggregating high value/high usage items within specified commodity groups to create commodity indices, reflecting price movement over time Benchmarking the processes by which services
This online calculator helps determine the value that Procurement adds to the organisation. What is the effect of your procurement savings on the company’s operating profit? On earnings per share? What is the return on investment (ROI) on your proposed procurement transformation strategy? This simple online tool will assist you in calculating key ratios that
How to calculate the value that Procurement adds to the organisation Read More »
Your company’s new year’s resolution – on your behalf – will be clear this year. Procurement needs to produce more savings than last year! More people will adopt sophisticated TCO (total cost of ownership) models to analyse, improve and measure costs. And if not now, you will be incentivised on reductions achieved. Being paid for
How an old(er) lady got 10% of the savings! Incentives made easy? Read More »
To all friends and colleagues From me (“the wishor”) to you (“the wishee”) please accept without obligation, implied or implicit, my best wishes for an environmentally conscious, socially responsible, politically correct, low stress, non-addictive, gender neutral, celebration of the summer solstice holiday, practised within the most enjoyable traditions of the religious persuasion of your choice,
A festive season contract: “Well wishes, without the risk!” Read More »
The unfortunate and sometimes “uncomfortable” truth is that the total life costs associated with engaging historically disadvantaged suppliers are often unexpectedly higher than engaging in business as usual. With existing and looming charter obligations, preferential procurement has become a strategic imperative and firms need to focus on reducing these costs. ‘Total Cost of Ownership’ (TCO)
Reducing the Total Cost of Affirmative Procurement Read More »
Whether it’s Green (Environmental) Procurement, developing historically disadvantaged individuals (HDI / BEE) or other forms of socially responsible procurement… powerful market forces guided by special interests play an increasing, and major role in defining procurement success. Will these issues destroy value created by strategic sourcing initiatives or will it raise the profile of the procurement
Preferential Procurement: Destroying or enhancing procurement value….? Read More »
