Supplier Management

Procurement transformation: more than squeezing suppliers’ margins

Transferring pressure onto your suppliers’ margins is not sustainable in the long-term. In fact, it is the shortest route to supply disruption as you will risk supplier failure, Duncan Jones, Principal Analyst for Forrester Research, told supply chain leaders at SAP and SmartProcurement’s CPO Forum early in March. He noted that successfully implementing a new […]

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Cabinet to align treasury procurement regulations with BEE Act.

Cabinet announced in March that it will approve the alignment of the Preferential Procurement Policy Framework Act (PPPFA) and the Broad-Based Black Economic empowerment Act (BEE Act). Public entities follow the regulations of PPPFA to procure goods and services. Alignment of these two Acts will ensure that government departments and municipalities include BEE when awarding

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Consumer Protection Act: implications for suppliers

As of April 1, 2011 suppliers in South Africa must comply with the Consumer Protection Act (CPA). Braam Botha of management training and consulting firm Arbinger Institute of South Africa tells SmartProcurement about some practical and legal implications of compliance. This article in made available only for information purposes, and is not legal opinion or

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Lowering costs – SCM’s business strategy

Lowering procurement cost through targeting inventory more efficiently is high on the procurement agenda for 2011, reports the 2011 Supply Chain Foresight Survey (SCF Survey). “Cost reduction is never far away,” Cathrin Heath, MD of procurement information solutions provider Ezee-Dex told SmartProcurement, “it compliments organisations’ core efforts to align their supply chains with business strategy.” Ezee-Dex

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Volume leveraging can lessen anticipated Gauteng highway toll food price increases

Despite government’s suspension of gazetted tolls for Gauteng’s highways, their implementation on June 23 will have an inflationary effect on food in Gauteng, Gordon Henry, General Manager of the Catervest Buying Group tells SmartProcurement.

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Red flags that your suppliers may be facing difficult times

The recession has made it clear that organisations of all sizes in all geographies face the possibility of going out of business, which would have a ripple effect both upstream and downstream. In a perfect world, relationships with suppliers would be truly collaborative, with the supplier communicating well in advance of failure or disruption. But

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Preferential Procurement Struggle: Promoting and assisting small business

"We struggle to get large corporates to assist the many small businesses we mentor on the long and hard road to success," Bella Cebekhula of Shanduka Black Umbrellas told SmartProcurement. “Procurement in South Africa is built around big companies and has very little to do with small business. We feel that government policy is not

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Absa’s proactive supplier management practices – Risk management in procurement

A 2010 McKinsey case study on purchasing organisations found that Absa Group Sourcing (AGS) leads the industry average (3.1 vs. 2.5), while excelling in category purchasing processes, where it achieved a higher rank than 80% of the organisations in its industry and well beyond the banking industry average. AGS has delivered sustainable, annualised savings equal

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Managing production costs could mean a 15% higher price/earnings ratio

Organisations that reduce costs by managing the production cost of goods sold and not by cutting overheads had a price/earnings ratio 15% higher than their peers, reports performance advisory company Corporate Executive Board (CEB). “Organisations therefore need commitment from their suppliers for sustainable and rewarding cost savings,” Douglas MacGregor, MD of supplier service benchmarking company

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