Page 16 - Logistics News - August 2021

P R O CUR E ME N T

Procurement in South African logistics

Courtesy www.bizcommunity.com

Procurement is becoming ever more powerful in South African logistics. Here’s why it matters.

rocurement teams responsible for securing suppliers unclear specifications and requirements; not undertaking
are actively putting their companies in a more supplier assessments; and not fully understanding supplier
P competitive position to make them sustainable both capabilities.
in the short and long term. In many respects, procurement is
viewed as the quintessential facilitator of business strategy. Both Bekker and Borstlap believe operations teams or
In South Africa, the need for effective procurement has never those doing the work on a day-to-day basis are best placed
been greater. to brief a company on procurements. Among their tips for
briefing procurement teams effectively are:
• Communicate full scope of work in person by means of an
initial workshop of the brainstorming session.
• Do not rush procurement processes due to tight deadlines –
it can end up costing you dearly.
• Gain buy-in and explain the purpose, aim and goal that the
business is looking for long-term improvement and gains,
not a short-term win.
• Involve all internal parties from the onset.
• Ensure full alignment in the company’s overall business goals
and how the supplier fits into the process of achieving these
goals.
• Ensure full alignment on the expected output/deliverables of
the process.

South Africa is emerging from more than a decade of For Rhett Oertel, BIL’s Head of Sales, it is critical that the
destructive graft, and while President Cyril Ramaphosa has a tenderer understands what the objectives of the tenderee are
lot of work to do in terms of regaining public trust, there are by asking questions related to the purpose in going out to
strong indications that government hopes to work with the tender, to understand whether the tenderee is motivated by
private sector to rebuild state enterprises for the good of the price, service or product offering.
country. Government’s new, more trade-focused approach
presents a golden opportunity for businesses to work more When responding to a tender, Oertel suggests that the
closely with the state while enhancing their own operations operational aspects of a tender be drawn up by the operations
and reputations in the process. or logistics team. “These will then need to be mapped against
the current business processes to ensure that all aspects are
Willem Bekker, Bidvest International Logistics (BIL) covered. Once this is done, include the procurement and
Supply Chain Solutions Manager, says from the outset, it is finance teams to ensure that their interests are covered and to
important to relay operational or business requirements to ensure that the tender is thorough and complete.”
a procurement team in a way that allows it to translate these
In terms of finding the best possible supplier, BIL Supply
requirements into a request for tender. “Finding a supplier Chain Solutions Engineer Ishan Hutheram says businesses
L O GI S T I CS NEWS them reach their strategic goals is essential,” says Bekker. should always look for those that stand out for their
that fits with the division or department’s vision and helps
innovation and willingness to go the extra mile, for example
BIL’s National Commercial Manager, Lodi Borstlap,
measure the performance of the supplier on value, not just
says there are four distinct challenges that need to be met:
cost, and look for vendor or supplier availability, flexibility and
allowing poor quality for lower costs; the provision of

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