Contract Management

“Open Book Costing” and “Cost Plus” can hamper Outsourced Logistics contracts.

The commercial agreement between the principal buyer and the service provider of outsourced logistics has far reaching, long term consequences for both parties. Cobus Rossouw of Volition shares some practical insights with Smart Procurement on how to extract the maximum value from your service provider…. “There are some common ideas being put forward as being […]

“Open Book Costing” and “Cost Plus” can hamper Outsourced Logistics contracts. Read More »

Do’s and don’ts when developing Office Automation tenders

“By rights, the issuing of a tender should mean the company is serious about placing orders – after all, respondents approach tenders with a belief that the company has realised a pressing need for the equipment, system and or services in question,” Billy Bell of Bell Output Strategies told Smart Procurement. “However, in many instances

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Service Level Agreements – what should they contain?

Many organisations have introduced Strategic Sourcing techniques to reduce their costs. Normally this is based on a methodology where the ‘A Team’, comprising top procurement, technical and other skills, completes a cost-management project and then hands these new arrangements over to other staff to continue to manage on a day-to-day basis. After the initial successes

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Finding a cure for “BAD” contracts and outsourcing deals?

“It is a well researched fact that the majority of outsourcing deals become unsatisfactory to one of the partners involved, within the first two years of the agreement, Cecil Harris, MD of ODMS tells SmartProcurement. This dissatisfaction could range from poorly delivered services to unhappiness with the pricing. “Invariably all outsourcing deals require a degree

Finding a cure for “BAD” contracts and outsourcing deals? Read More »

Printer, Fax and Photocopier Rentals: What clauses to look out for!

Most organisations finance their office automation equipment due to the associated high capital commitments. The problem here is that if there are issues with the equipment the corporate company cannot hold back payments or force the issue of replacement because the financial instrument still has to be paid to someone else, regardless of performance… By

Printer, Fax and Photocopier Rentals: What clauses to look out for! Read More »

A festive season contract: “Well wishes, without the risk!”

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,

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Avoid, reduce or pass the buck on procurement risk… (Part 1)

Clever suppliers will plan to introduce risks after you’ve entered a into contract or started a project. As part of a “foot in the door” strategy, they might be the lowest bidder initially but with a deliberate plan for increasing costs once the “Balance of Power has shifted”. A good example of this is in

Avoid, reduce or pass the buck on procurement risk… (Part 1) Read More »

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