All posts by Procurious HQ

New role for former Procter and Gamble CPO

Rick Hughes, the former CPO of Procter and Gamble, has accepted a new role at GEP, a procurement software, outsourcing and consultancy firm.

Rick Hughes P&G

After a stellar 31 year career at P&G, one of the world’s most recognisable brands, Hughes will take on an advisory role with GEP that will see him provide advice on procurement transformation, supply chain innovation and global risk management to the organisation’s clients.

Subhash Makhija, CEO and co-founder of GEP, said: “Rick Hughes is one of our industry’s true stand-outs and it’s terrific having him on the GEP team. Rick’s expertise, insight and experience generates tremendous value for clients and that is very exciting for everybody who cares about procurement.”

Speaking on his appointment Hughes said: “The GEP team is well-known and well-respected for the strength and depth of its people, for its passionate commitment to clients, and for delivering results that always move the needle. This is a period of great change and possibility in the industry. I am delighted to be working with GEP, helping our friends and colleagues overcome new challenges and seize new opportunities.”

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The iCar cometh: Is Apple about to diversify its supply chain further?

First the iMac, then the iPod, iPhone, iPad and the smartwatch – is the iCar next?

Will we see driverless cars on the roads of our future?

It might seem a bit far-fetched to think that the company that has revolutionised the way we communicate would expand into the electric car market, but reports in the past week suggest that we might see an Apple car as early as 2020.

Although much of this remains speculation (Apple are refusing to comment on any of the reports), there seems to be strong evidence that the tech giant may be getting ready to enter a completely new field.

Head-hunting

Apple has reportedly brought on board senior executives from both Ford and Mercedes-Benz to head up a new team at its HQ. Moves have also been made to hire employees from Ford and Tesla in the fields of car safety, renewable energy, battery and hybrid technology and car software systems.

As ever, none of this has come without issues. Elon Musk, the owner of Tesla, has been quoted as saying that Apple has been tempting Tesla employees with huge signing bonuses and salary increases, while A123 Systems, a battery technology company, is reportedly suing Apple for ‘aggressively poaching’ its senior engineers.

Busy Market

So, will Apple diversify its supply chain further? With the organisation rumoured to be spending $1.7 billion building a plant with Japan Display to allow it to produce its own OLED displays, is there funding available to bring a car to market inside 5 years?

There are a few big players in the electric car market to contend with. Alongside Musk’s Tesla, arguably the innovation leader, automotive giant Toyota is currently top of the tree with its Prius and Lexus brands. Other notable competitors include Nissan, Porsche and Daimler, with either fully electric or hybrid vehicles.

With traditional manufacturers taking more notice of new entrants, the electric car market is wide open for innovation. Even if it took Elon Musk sharing all his designs to try to prod competitors into action.

User Experience

However, entering into this market with a vehicle is very risky. Sales of electric cars are low and margins are tight, leading people to question why anyone would want to get into the market right now. Instead, Apple may choose to focus on the user experience, something that it already has a strong reputation for.

Procurious has reported on recent developments in driverless, autonomous or technologically enhanced vehicles. As there have been for Google, there would be opportunities for Apple to develop user systems that could be fully integrated into cars. This would mean Apple was using its existing expertise, and therefore lowering its exposure and risk.

This would also open up the possibility of a partnership with one of the established players in the market, sharing innovation and development costs, plus opening up a new market for Apple. Just think how marketable a car would be with a fully integrated Apple operating system.

Even without the ‘iCar’, Apple can certainly play the role of disruptor that it does so well, and maybe bring the rest of the industry along too, to the benefit of the consumers. These are exciting times in the car industry and we wait with interest to see the next move.

Japan Display – http://finance.yahoo.com/news/apple-spend-1-7-billion-163417908.html

Innovation – https://hbr.org/2015/02/what-happens-if-apple-starts-making-cars

Meanwhile in related news:

Qatar inks deal for Doha Metro driverless trains

  • A consortium of five companies has signed an agreement to build and deliver a full-automated driverless metro system in Doha. The group consisting of Mitsubishi Heavy Industries, Mitsubishi Corporation, Hitachi, The Kinki Sharyo Co and Thales said it has received a letter of conditional acceptance from the Qatar Railways Company for the systems package for the metro project which is slated for completion in October 2019.
  • The package calls for turnkey construction of a fully automated driverless metro system. Included are 75 sets of three-car trains, platform screen doors, tracks, a railway yard, and systems for signaling, power distribution, telecommunications and tunnel ventilation.
  • The package is also expected to include maximum 20-year maintenance services for the metro system after its completion.

Read more at Arabian Supply Chain.com

West Coast port nightmare may start to end

  • More than seven months after the previous contract expired June 20, and after more than three months of alleged work slowdowns by West Coast longshoremen that contributed huge delays in moving containers, a tentative deal between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMI), which represents West Coast ports and terminal, was at last reached over the weekend. “Normal” port operations were said to have started back up Saturday night.

  • The tentative agreement came just three days after US Labor Secretary Thomas Perez arrived in San Francisco to broker a deal with the help of a federal mediator who had joined the talks six weeks earlier. An agreement on the last remaining issue – a rather obscure one relating to use of arbitrators to settle disputes – was successfully resolved, leading to the agreement.
  • The contract, however, will still need to be ratified by rank and file union workers and all the companies and entities represented at the ports and terminals by the PMI. Reports are the union vote may not be held until sometime in April.

Read more at Supply Chain Digest

Companies wasting billions every year by not sharing supplier information

  • Global companies are wasting more than $30 billion (£20 billion) a year because they do not share information about suppliers, according to business information provider Achilles.
  • It says only a third of global firms across the UK, USA, Spain, Brazil and Nordic countries work collaboratively with other similar businesses to manage information about suppliers. This is despite 88 per cent of them saying domestic and international ‘arms’ of their company require the same details from suppliers in terms of health and safety, environment, quality, sustainability and ethics, according to a survey of supply chain professionals from 300 large businesses across the oil and gas, manufacturing, construction and utilities sectors.
  • Achilles chief executive Adrian Chamberlain said: “It is much more efficient when whole industries agree common standards required of all suppliers in terms of health and safety, ethics and compliance, then share the administrative burden of collecting, checking and auditing information,”
  • He added there was no need for firms to be nervous about sharing supplier information, as it was not commercially sensitive.

Read more at Supply Management

Citi and Etihad Airways sign supply chain finance partnership

  • Citi, the leading provider of cash management and trade services in the MENA region and Etihad Airways, the national airline of the United Arab Emirates, today announced the signing of an agreement to provide a Supply Chain Finance (SCF) solution to pay select suppliers.
  • The innovative financing program will enable Etihad Airways to unlock liquidity and pay its suppliers almost immediately through funding provided by Citi. It also offers a highly customised structure that will cater to the airline’s supplier segment across the globe, and will facilitate access to liquidity across businesses of all sizes.
  • James Rigney, Etihad Airways’ Chief Financial Officer, said: “Our suppliers are an essential part of the success of our business and we are happy to provide the tools that offer new credit and liquidity sources and accelerate their access to cash flow.

Read more at eTurboNews

In surprise move, Honda Chief to step down

  • Honda Motor’s chief executive, Takanobu Ito, will step down in late June after six years in the top post and be succeeded by Takahiro Hachigo, a low-profile engineer with global experience, the company said in a surprise announcement on Monday.

  • Honda, Japan’s No. 3 automaker, behind Toyota and Nissan, has hit a rough patch during the past year with quality problems that have led to multiple recalls of its popular Fit hybrid subcompact, which Mr. Ito said this month could have been caused at least in part by an aggressive sales target. Such self-inflicted setbacks were compounded by multimillion-vehicle recalls to replace airbag inflators made by a top supplier, Takata, that have so far been linked to six deaths, all in Hondas.

  • For the past three years, Mr. Ito, 61, a feisty former supercar engineer, has shaken up Honda’s tightly knit supply chain as the automaker has sought to trim costs and find more cutting-edge technology. “I think this move is an attempt by Honda to tread a different course, with someone who upholds harmony,” said Takaki Nakanishi, an auto analyst and chief executive of Nakanishi Research Institute.

Read more at The New York Times

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How to use Filters to find exactly what you’re looking for

Using filters to get tailored search results

Use search filters to find what you're looking for

Nope we’re not talking water filters, Instagram filters, or the type of filters needed for your broadband – let us introduce you to the filters that will turbocharge your search experience on Procurious (and you thought filters were boring…!)

No matter where you are on the site,  the Procurious search bar is always within easy reach. You can use it to search for people, events, articles, discussion topics, or learning materials (videos).

Give it a go right now – fire something into the bar (‘CIPS’ for example) and see what it returns.

You’ll notice that the results page allows you to filter out your search results by type (all of which we touched on above). This proves invaluable when sorting those Procurious members with CIPS accreditation from CIPS-related articles (like our recent explainer on the CIPS Risk Index for instance).

More interested in growing your network and expanding your influence? If the search box isn’t returning the results you wanted, use the filters present on the ‘Build your network’ page to hone in on Procurious members that more closely align with your interests.

Build your network search filters

Here you can target your search and use filters to break down search results by country, industry, or category.

Whether you want to find people who work in Government, health care, mining (or any one of the 30+ other industries listed), want to list Procurious members by country, or by a particular category (commodities, logistics, utilities etc.) – you can use the filters as you see fit.

Of course you can also combine search filters for very precise hits: want to find members in the defence industry, looking after IT in Afghanistan? Yep, you can do that.

Why not give it a go now, and see what you’ve missing out on?

Latest trends in the procurement outsourcing service provider landscape

Want to know the latest procurement growth and adoption trends in Europe? How about service provider positioning, and solution characteristics of Europe-focused contracts too? You can find all of that in the new report by Everest Group.

The report, titled: “Procurement Outsourcing Service Provider Landscape for Europe with PEAKMatrix Assessment” deep-dives into the following:

  • Overview and adoption trends in the PO market in Europe
  • 2014 PO PEAK Matrix for Europe
  • Service provider delivery capability assessment
  • Solution characteristics of PO in Europe

Rajesh Ranjan, Partner and Head, Business Process Services Research, Everest Group, comments: “Europe is the second largest geography for Procurement Outsourcing, and service providers have had to ‘up their game’ in the wake of intense competition to grab new opportunities.

The multi-process PO market in Europe currently stands at US$610 million, which is nearly one-third of the global PO market, and showed 13 per cent Year over Year (YoY) growth in 2013. United Kingdom is the largest geography within Europe with a 50 per cent share. However, the service provider landscape is in stark contrast – various regional players have a more prominent standing and some of the global BPO players are yet to grab a sizeable share in Europe. In the wake of intense competition, service providers are enhancing their capabilities to grab new opportunities in Europe. This confluence of competing forces is shaping the market in various interesting ways.

A total of 16 PO service providers were analysed using the PEAK Matrix Assessment based on Performance (P), Experience (E), Ability (A) and Knowledge (K). These included: Capgemini, Genpact, GEP, Infosys, Optimum Procurement, Proxima, Wipro, and WNS to name but a few.

In the report  three PO service providers achieved the highest tier “Leader” recognition – they were: Xchanging, Accenture, and IBM. These “Leaders” were classified as having the largest PO market share and were positioned the strongest performers in their ability to deliver services successfully. Leaders outperform other players across nearly all the metrics assessed.

In addition to market success, the classification was also captured through four sub-dimensions: scale, scope, technology, and delivery footprint.

Read more: the report is available to purchase now from this link.

Work-life balance & job satisfaction more important than salary to procurement workers

Work-life balance and job satisfaction trump salary as the most important aspects of working life – according to recruitment specialist REED.

Vasin Lee/Shutterstock.com

Breakdown across the ages reveals changing priorities when it comes to work and play.

With research revealing that workers in procurement roles rate work-life balance and job satisfaction as more important than salary, recruitment specialist REED is urging employers to give consideration to their recruitment and retention strategies.

The poll of over 1,600 workers by YouGov, in association with the launch of the REED 2015 Salary Guides, questioned workers on their attitudes to work, career aspirations and regrets.

What really matters at work

Within the findings, REED identified key trends which indicate how UK workers’ priorities change over the course of their career – which could have a significant effect on the talent management strategies of many UK firms.

With 36 per cent of workers in procurement claiming that good job satisfaction is the single most important aspect of working life, followed by the need for good work-life balance (28 per cent), it’s no longer just about the salary package.

Results revealed – what matters most across the ages

18-24                     Salary and benefits (38%)

25-34                     Job satisfaction (31%)

35-45                     Work-life balance (31%)

45-54                     Salary and benefits (25%)

55+                         Job satisfaction and work-life balance (joint top – 32%)

Career carousel

The poll revealed that one in eight workers (13 per cent) in procurement are unsatisfied in their role, with one in five (20 per cent) planning to look for a new job over the next 12 months.

While slightly more than one in ten workers (13 per cent) have stayed loyal to the same employer, twice as many (23 per cent) have moved workplaces more than seven times. When asked why they changed employer, procurement and supply chain workers reported better prospects or promotion (43 per cent), better salary (41 per cent) and boredom with their current role (28 per cent) as the top three motivators.

Gert Nzimiro, executive divisional director at Reed Procurement & Supply Chain, said: “In a candidate-led market such as this, employers need to think hard about how they attract and retain procurement staff. What this research shows is that although salary is very important, now we’re out of the recession it’s no longer just about pay – employers need to consider many other factors, such as flexible working and how they can offer the greatest job satisfaction. 

“Our research shows that in the last 12 months, 29 per cent of procurement and supply chain workers received some form of pay rise, and almost a quarter (24 per cent) received a bonus. However, with 22 per cent having received no benefits, the fact that 20 per cent are planning to look for a new role over the next 12 months, is hardly surprising. Employers need to start taking action and think wider than just the salary package.”

The Reed Procurement & Supply Chain 2015 Salary & Market Insight report can be obtained at www.reedglobal.com/salaryguide

State of Flux Technologies introduces SRM technology brand

Reinforcing their focus on supplier management software, State of Flux Technologies launches a new name and brand – Statess.

State of Flux Technologies launches its new name and brand – Statess!

Following a year of increased growth and investment on their supplier management platform, State of Flux Technologies celebrated the launch of its new name and brand Statess (pronounced State-ess) with clients, procurement leaders and industry experts last week.

Preserving the strong relationship and heritage, Statess will continue to work closely with the State of Flux team to deliver market leading supplier relationship management (SRM) solutions.

“Our global SRM research has shown that companies who invest in SRM technology deliver incremental post-contract benefits. Now is the perfect time for Statess to help companies deliver these benefits.” Alan Day, State of Flux Chairman and Founder

Led by CEO Lance Younger, Statess has seen an increase in the number of clients over the past year, including Centrica, IAG, Friends Life and Ladbrokes. They’ve grown the team and continued to innovate, adding great new functionality in supplier innovation management, performance management, risk management and sustainability/corporate social responsibility (CSR). Statess also has an expanded partner ecosystem, including 15 best-in-class providers, from spend analysis to sourcing, P2P, and sustainability/CSR.

“Being presented the Gartner Cool Vendor 2012 award recognised our pioneering supplier management platform, and since then with our clients and team we have continued to move forward solving supplier management challenges and empowering teams across the enterprise. We created the first supplier innovation module in 2013, and 2014 was another fantastic year with more product innovation and great customer experiences. Our new brand and strong partner ecosystem reinforce our passion and focus on supplier management software.” Lance Younger, Statess CEO

In 2014, supplier management continued to surge as a critical approach for companies to deliver differentiation and for procurement to co-create the agenda with the business. In 2015, ambition remains key, and leaders will be defined by execution – intelligently simple execution. Statess is on a mission to make SRM easy for all and they believe they can continue to do this for all their clients.

Check out the Statess website and social media channels to learn more.

Closed for business: US West Coast ports shutdown amid dispute

Supply chains across America are facing up to six months’ disruption after 29 ports on the US West Coast, including the two busiest ports in the country, were partially shutdown over the weekend.

An on-going dispute between the Pacific Maritime Authority (PMA) and the International Longshore and Warehouse Union (ILWU) over contracts and working conditions, has led to major delays in the loading and unloading of cargo.

The disruption reached its peak on Sunday morning, with approximately 34 container ships anchored along the Californian coast waiting for access to the ports of Los Angeles and Long Beach.

Labour Dispute

The PMA and ILWU have been locked in contract negotiations since the end of June last year, when the previous contract ended.

Unfortunately, relations between the two parties have soured, with the PMA accusing the ILWU of a deliberate slow-down of work in recent months, something that the ILWU has attributed to changes in practices by the shipping companies. With neither side willing to back down, negotiations have stalled.

In response to the slow-down, the PMA took the decision to suspend port operations for six weekend and holiday days in February, stating that they were unwilling to pay the high overtime rates for weekends and holidays when productivity was so low.

With conservative estimates placing the cost to the US economy at $2 billion per day, President Obama has sent Labour Secretary, Tom Perez, to get negotiations back on track and a deal in place.

Supply Chain Pressures

However, even if a deal is agreed soon, it could take anywhere between two and six months for port activities to return to normal levels. This would then lead to a far greater impact on supply chains already experiencing severe delays to deliveries of a wide range of goods, including agricultural produce, car parts and clothing.

Exports of fresh produce to Asia have been heavily impacted, with many US suppliers now looking to domestic markets for sales as other customers cancel orders. There are also concerns that many retailers will be unable to stock spring clothing lines, leading to lower incomes over March and April.

In the car industry, both Nissan and Toyota have been forced to airfreight parts for US manufacturing operations due to the disruptions. Honda has also confirmed a slow-down in US production due to shortages of parts normally shipped from Asia to the West Coast.

Lack of contingency

There are concerns that many of the companies affected don’t have the necessary contingency plans in place to mitigate the risks of the disruptions. It is felt that many were unprepared for the dispute to last as long as it has and that it has left companies exposed to the delays.

Although some companies like Nissan and Toyota have been able to take steps to mitigate the disruption by using other transportation methods, others have not been able to act in the same way, compounding the delays in the supply chain.

One high-profile victim of the dispute is McDonalds. As Procurious reported earlier this year, the disruption at the coastal ports lead to shortages in produce exports and rationing of fries in Japan. This was a contributing factor to the company’s first full-year loss in the region in 11 years.

For more on this story, follow these links:

http://www.supplychaindigital.com/supplychainmanagement/3831/What-happens-if-the-US-ports-keep-closing

http://www.usatoday.com/story/money/cars/2015/02/14/asian-automakers-parts-cars-port-strike/23380041/

http://www.ft.com/cms/s/0/2be1ed0a-b23a-11e4-80af-00144feab7de.html#axzz3Ru37cVTq

Read on for the other procurement and supply chain stories making the headlines.

Heathrow Airport procurement director offered exec committee place if he ‘reshaped’ function

  • Ian Ballentine, procurement director at Heathrow Airport, was offered a seat on the executive committee if he could “reshape” the function within a year of joining the firm.
  • Ballentine joined the firm in November 2012, and in late 2013 he joined the committee. He said: “I took the job here because the previous chief exec said: ‘I need someone to come on board and really reshape procurement for what I think it can become in an organisation, and if within a year you can demonstrate you can do that then I will give you a place on the board’.”
  • Ballentine started out in charge of procurement for the operations division of Heathrow, but following his success his role was widened to include the remaining IT and construction divisions in a new merged function. His work revolved around changing perceptions of procurement as being “bureaucratic”, “slowing things down and not adding value” to “really demonstrating the savings off the bottom line”.

Read more at Supply Management 

Food chain is an easy target for criminals, says safety chief Alan Reilly

  • Food fraud is still seen as an easy target for criminals and the authorities are not organised enough to tackle the criminals, the outgoing Food Safety Authority of Ireland(FSAI) chief executive Alan Reilly has said.

  • Prof Reilly said food companies must have a threat assessment procedure in place to identify where the food supply chain could be vulnerable to fraud.

  • “The longer that food chain, the more things that could go wrong and the more opportunities for criminals to get in and do things like food substitution and animal species substitution, to bulk out products, to dilute down high-value products like olive oil and so on,” he said.

  • “The food chain is still seen as an easy target for criminals. There is big money to be made in food fraud and at the present moment I don’t think we are organised enough to tackle some of the criminals out there. It does need co-operation across all the agencies of the State, gardaí, customers and the food regulators have to work together to tackle the problem.”

Read more at The Irish Times

BT’s ‘near-monopoly’ on rollout of rural broadband sparks concerns

  • Plans to put a publicly-funded £45.5million superfast broadband contract on to the open market were abandoned after BT refused to bid and left only two potential bidders, a leading member of the project team has revealed.
  • Commissioning group Connecting Devon and Somerset had said last year it would launch a tender process which would take coverage up to 95 per cent of all properties.
  • A previous £94 million contract with BT only promised that 90 per cent of businesses and residents across the two counties would see data transfer speeds increased by 2016.

Read more at Western Morning News

Church charity to research FTSE 100 supply chain slavery links 

  • A church-based charity is to lead research aimed at uncovering potential links between human trafficking and the supply chains of FTSE 100 companies.
  • The study by Us, with the help of Finance Against Trafficking, Ecumenical Council for Corporate Responsibility (ECCR), and Rathbone Greenbank Investments, is motivated by concerns the companies may inadvertently become involved in human trafficking through links with suppliers around the world.
  • Rachel Parry, global relations director for Us, said: “We want to see FTSE 100 companies better informed to help them ensure there is as little risk as possible that their supply chain is somehow touched by the traffickers’ trade.”

Read more at Supply Management 

Supermarkets should encourage small suppliers, not bully them

  • The news that the grocery industry watchdog is investigating Tesco over its alleged mistreatment of suppliers is unlikely to have shocked many. Supermarkets aren’t renowned for treating their suppliers well – particularly those small businesses that don’t have the muscle to put up a fight against unfair contracts and late payments. And as margins shrink in the groceries sector, the supply chain represents an obvious target. The insolvency specialist Begbies Traynor reckons as many as 100 food and drink manufacturers could go bust this year because of the supermarket price war.
  • The irony is that all the evidence suggests consumers are looking for more choice in their supermarket shopping – not ever more brands of washing powder or baked beans, but new products and new product categories. The supermarkets need more innovative smaller suppliers offering artisanal products, not fewer, yet their behaviour is driving firms out of business.
  • Research sponsored by the online grocer Ocado underlines the point. Its poll of shoppers, conducted by YouGov, found that 38 per cent actively seek out small label products when they’re in the supermarket and that 51 per cent rely on their supermarket to introduce them to new products. A third said they were more likely to shop in a supermarket they believe is supportive of smaller businesses.

Read more at The Independent

Kimberly-Clark names SVP global supply chain

  • Kimberly-Clark Corporation has appointed Sandra MacQuillan, 48, to the newly created position of SVP, Global Supply Chain. MacQuillan joins K-C from Mars Inc., where she served as Global Vice President, Supply Chain for Global Petcare. She will be joining K-C in the second quarter.
  • With her appointment, MacQuillan will have global responsibilities for procurement, transportation, continuous improvement, sustainability, and quality, safety and regulatory operations. Labor relations and workforce issues across product supply will also be coordinated at a global level. She will also lead the company’s Global Supply Chain Council, which will be comprised of supply chain leaders from across the globe, and will build the next generation of supply chain capability at the company. She will report to Thomas J. Falk, chairman and CEO, and become a member of K-C’s global senior leadership team.

Read more at Consumer Goods Technology

The CIPS Risk Index Explained

Following on from our review of the Purchasing Managers Index (or PMI) last week, Procurious continues its look into procurement performance indicators. This week we are focusing on the CIPS Risk Index. 

CIPS Risk Index

The CIPS Risk Index is a tool developed by CIPS and powered by Dun and Bradstreet (D&B). It has been designed to give procurement and supply chain professionals a country-by-country understanding of the risks that exist within their supply chain.

The index is generated through a number of unique assessments that are undertaken by D&B’s economics team and provides an individual country-based score for 132 countries. CIPS suggests that these country-based scores can be aggregated to indicate overall supply chain risk.

For procurement professionals that want to understand the details behind the high level risks pointed out by risk index, CIPS provides monthly Country RiskLine reports and more detailed quarterly Country Insight reports. These reports provide a more in-depth look into the political, economic and social risks present in countries and how these impact purchasing activities.

When calculating the index, D&B takes into account the following categories:

  • Short-term economic outlook.
  • Long-term potential
  • Market potential
  • FX risk
  • Transfer risk
  • Business environment quality
  • Business continuity
  • Insecurity/civil disorder risk
  • Expropriation/nationalisation risk.

To find out more about the CIPS Risk Index click here.

What’s procurement like in your part of the world? – South Africa (Elaine Porteous)

Procurious showed you its map of the world last week, marked with where all our members come from, and asked what procurement was like in your part of the world.

Following on from looking at Scotland, Italy and the USA, Elaine Porteous tells us what procurement is like in her home country – South Africa.

Elaine is a freelance consultant, published writer and editor of business articles for various on-line and print media, specialising in Supply Chain, Procurement, Logistics and Career Management.

She has previously shared her knowledge on a number of these topics in guest blogs for Procurious.

Read her full story here.

How do you think procurement differs in South Africa, as opposed to elsewhere in the world?

I think we have a unique situation and a lot of challenges. Firstly, we have an historical situation that is being addressed partly through Broad Based Black Economic Empowerment (BBBEE). The aim is to redress some of the imbalances of the past and broaden the base of suppliers through preferential procurement and sourcing locally for defined commodities.

Skills are scarce, particularly in the public sector where there is a lack of capacity and inadequate planning and budgeting. We are struggling with managing conflict of interest, limiting fraud and tackling corruption. The good news is that there are government initiatives afoot to improve risk management and make substantial improvements to their processes. Our Government CPO is implementing an e-tender portal shortly to tighten up tender processes.

Procurement in the private sector is alive and well; there are many organisations that are developing their staff and applying best practice, not only in the multi-nationals.

Do you know how many other procurement professionals are in South Africa?

I would estimate more than 10,000. CIPS has 2295 members in South Africa and more than 16,000 members across Sub-Saharan Africa.

How did you get started in procurement?

Like most people, by accident! I was cruising along as an HR business partner in a big multinational when the HR Director was tasked with launching a procurement function.  He nominated me to come along for the ride and the rest is history.

What do you see in procurement’s future in South Africa and how can social media play a role?

The procurement function is growing in stature and slowly getting more traction and visibility in organisations.

There is a very active community of procurement people, from both the public and private sectors, who engage extensively on LinkedIn.  Also, there is a small band of enthusiastic specialist recruiters that ply their trade there and on Twitter.

We have an on-line marketplace that is hosting a Procurement Africa e-Conference, in association with CIPS, shortly.  This may be a first for Africa. Many procurement professionals are avid networkers and attend the various conferences and events in the procurement field.

Why did you join Procurious?

It was refreshing to find a platform for us to interact on a wide range of subjects without having to belong to a formal organisation or have to put up with lots of advertising and sales pitches.

What are you hoping to get out of the network?

I like to keep up with global trends in supply chain and to hear other’s opinions on the topics of the day in the procurement field.

I’m really interested in helping young procurement people advance their careers and advising them on what the options are and importantly, how to get there.

How are you going to get your peers involved?

I see Procurious going from strength to strength.  I will use my networks to introduce others to this great resource.

More on the South African CPO Tender portal here.

Read more of Elaine’s writing for Procurious by following these links:

https://www.procurious.com/blog/life-style/your-job-role-might-be-obsolete-by-2020-will-you-be-sustainable

https://www.procurious.com/blog/life-style/influencing-skills-can-be-learnt-start-now

https://www.procurious.com/blog/life-style/should-you-ever-rehire-an-ex-employee

5 factors to consider when deciding on a supplier

What are the top 5 factors you consider when deciding to partner with a supplier?

Hi there! For an up-to-date article on this topic, please go to: https://www.procurious.com/procurement-news/critical-factors-when-selecting-your-suppliers


The second part of the discussion wrap this month looks at the factors that are considered when deciding on supplier partnerships. The top five factors were (in no particular order):

  • Cultural Fit – including values
  • Cost – covering price, Total Cost of Opportunity (TCO)
  • Value – value for money and value generation opportunities
  • Experience in the market and current references
  • Flexibility
  • Response to change – in orders and products
  • Quality – covering product and service quality and quality history

Okay, we know that’s seven but it was hard to split a couple of the more popular ones!

Other factors suggested by the community included trust and professionalism, strategic and process alignment and technical ability.

The final factors are worth investigating in more detail. It’s critical to have executive level buy-in from both sides otherwise it can cause the relationship to stall. Supplier innovation should also be considered, particularly in line with any cost-cutting or process streamlining efforts by the supplier, as this may in turn lead to value creation for the purchasing organisation.

Finally, it was recommended that buyers should be aware of the breakdown in business percentage on both sides. You neither want to represent a high percentage of the supplier’s business, nor do you want to rely on the supplier too heavily.

For more on this theme, check out the following articles:

The Importance of SRM – https://www.procurious.com/blog/in-the-press/three-key-insights-on-the-importance-of-srm

Take a ‘joined-up’ approach to logistics – https://www.procurious.com/blog/in-the-press/in-logistics-take-the-joined-up-approach

Considering the Right Outsource Partner – http://www.fronetics.com/7-things-consider-choosing-right-outsource-partner/