What are the consequent strategic considerations to supply chain management and the Preferential Procurement outcomes?
Peter Drucker is quoted as saying “You can’t manage what you do not measure”. This is certainly true in terms of Preferential Procurement. Essentially, in the context of B-BBEE, collating, recording and validating each supplier’s B-BBEE certificates, in a supply chain, will ensure that the data presented is credible and reliable for compliance reporting purposes, without exception.
Collation Process
NEVER ..... collate supplier B-BBEE certificates at the end of your measurement period or just in time for your verification audit, which is the general modus operandi of most organisations.
ALWAYS .... be proactive. The implementation
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For example, this may occur when an organisation elects, or is forced by its clients, to perform a verification on a specific division of their organisation, for competitive or comparative purposes.
› There is often no data accuracy or any commitment from the source of information that data is accurate.
› There is often no effective recourse if a certificate is found to be fraudulent. You could report it but it would be difficult to hold anybody accountable, unless there is an audit trail tracking any submission right back to the person who provided the certificate in the first place.
Why is B-BBEE Certificate Validation necessary?
Collating all supplier B-BBEE data is not sufficient. Reasonable validation is necessary to ensure that certificates are:
› Not obviously fraudulent;
› Issued by a legitimately accredited verification agency. All issued certificates must be SANAS accredited;
› Contains the minimum data requirements – see page XXX which highlights non-negotiable elements which must appear on a valid
B-BBEE certificate - and
› as far as possible, verified by the Verification Agency or
B-BBEE Professional who issued it. This can be done via email or telephonically by providing the B-BBEE certificate number to the
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It is critical that an organisation has processes in place to oversee the receiving, validating, verifying and capturing of supplier certificates, as well as periodic reporting on all preferential procurement spend. This will ensure that the management of Preferential Procurement is proactive, resulting in a substantially improved outcome.
In conclusion, the core lesson of Preferential Procurement to Team Transformation is about embracing Preferential Procurement, not as a single autonomous element, but rather as a critical aspect to the ESD component. Taking a holistic view of the ESD element by linking it strategically to an organisation’s Supplier Development and Enterprise Development initiatives, will ensure a more robust and complete approach to supply chain management. Remember, it is about looking deeper into how you procure, not necessarily where you procure.
› Supplier engagement – This involves communicating and educating those within your supply chain, specifically in relation to your transformation expectations, to include the consequences of not improving their B-BBEE status level;
› Spend shift – in terms of larger suppliers, it will be necessary to shift spend to smaller ‘Black’ Owned or ‘Black’ Women-Owned suppliers, in order to improve the outcome of this element;
“A Preferential Procurement
Performance objectives? Strategies? Action Steps for
Proper mixing, blending, and decanting of in-process products per Batch Sheet instructions. Cleaning of processing equipment. Proper packaging of finished goods per Q.A. instructions and Packaging Specifications. Accurate identification of packaged goods prior to removal from the Processing Department – finished goods check. Follows workplace operating, environmental, and health and safety procedures in a positive and professional manner.
He stared at the ceiling as he made himself cum for the third time, today. He had nothing better to do. He’d been fed a steady diet of alcohol, cigarettes, caffeine, and cheap food his whole life. He thought of his next meal: gravy, cut potatoes, and synthetic cheese-substance.
Evaluating validity to examine the effectiveness in and throughout the process. This process involves the factuality of information, project design, data applications, data, model and the results from an event or occurrence. Accountability will include checks and balance, performance evaluations, assessment and customer satisfaction. Measurement tools will then be considered in the light of the industry’s exclusive realities and considerations. Over time, accountability impact and cost must be evaluated.
As stated in the case “because foreign sourcing does not support just-in-time deliveries, Bose “had to find a way to blend low inventory with buying from distant sources”, Suppliers should be able blend into technological innovation of Bose and be able to respond to Bose ’s needs in a timely manner to bring new products to market as quickly as possible. If not, it could have a devastating effect on sourcing of materials, inventory management and customer service which are core competencies of Bose. Question 2. What should be the relationship between Bose’s supply management strategy and the development of its performance measurement
Process and tools Target Corporation uses tolls and process for product safety and quality assurance. The company assesses a program for risk –based product safety and quality at every stage in the product life cycle, from development through the life of brand product. Target global team implement a program across 36 countries and 2228 factories producing target product, during the process will require independent third-party testing to validate safety and quality before the guests purchase product. the vendor in the company are expected to employ best practices, including clearly defined and well-documented manufacturing and quality processes including staff training , and record keeping. What does the TC required to do the job?
The method includes breaking the company into five "major" and four "support" activities, and then looked at each one to see if they give a cost advantage and quality advantages. Primary Activities Inbound logistics Nikon has been working with a number of suppliers around the world. They establish a flexible system with other suppliers
Sales record: Every organisation have to produce some product that has to be the sale into the market. The product is made for full filling the need of the customer through that company generate the profit. The product has to be a sale to the customers. Their records of sealing the product provide the data.
As a result of the events of Dremliner, Boeing has improved their supply chain management process by incorporating continuous improvement strategies and implementing ways to encourage open lines of communication amongst their supply base. Boeing 's supply chain management places emphasis on on-time deliveries and streamlining common standard processes across their suppliers. Boeing has developed several tool to not only monitor and audit the best practices and overall performance of the supplier, but aid in collaborative communication amongst their entire supply base.
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Process Drive to achieve functional excellence and integration across all major processes. - Core supply chain processes driving the business. - Best in class approaches to our core processes (manufacturing, integrated demand planning, procurement, cycle-time, compression, dynamic deployment) - Bulk linkages with suppliers and customers. C. Organization Providing the critical success factors of cohesion, harmony and integration across organization entities - Level of cross functional integration is required to manage core processes effectively - Leverage cross-company skills and abilities - Performance measurement and reporting structure help to achieve objectives D. Technology Empowers the Supply Chain to operate on a new level of performance and is creating clear competitive advantages for those companies able to harness it.
In addition to this the above strategies ensure that most of the goods are procured locally, a chain of local suppliers is formed which reduces the overall cost. A survey states that pizza hut procures 95% of its raw material locally hence, enhancing its relationship with various local suppliers, reducing the prices significantly and managing the supply risks and challenges. 2.2 Use Information Technology to create strategies to develop your chosen organization’s relationship with its suppliers. (Criteria 2.2: Use information technology to create strategies to develop an organization’s relationship with its
AC 2.1 – Evaluate the effectiveness of strategies used by IKEA to maintain supplier relationships and evaluate the effectiveness of these strategies. Proficient administration of suppliers is the vital path for assembling organizations can propel their execution. There are numerous huge parts of supplier administration; they join sourcing methodologies, and the way connections are overseen and the data trade arrangements embraced by IKEA. Taking into account the way that when in doubt, top of the line items are fabricated by various diverse suppliers. IKEA had 1,400 worldwide suppliers, 60% its suppliers are from European nations.
This certification ensures so much every technical or dole techniques pair the very best worldwide standards. In 2015, job began concerning integrating the European Foundation over Quality Management (EFQM) case throughout the Company. This method desire stay sustained all through 2016 to assign higher levels about commercial enterprise grace across every
Supply Chain Management (SCM) department encounters a number of different stakeholders. Many different working relationships take place within each individual work on, from colleagues to clients, stakeholders, and suppliers. The internal supply chain that delivers the service is complicated and requires the co-ordination and co-operation of individuals and teams who have different skills and priorities. Hence, understanding stakeholder needs and working effectively with them is critical to the success of the procurement team. Cleland (1995: 151) recognised the need to develop an organisational structure of stakeholders through understanding each stakeholder’s interests, and negotiating both individually and collectively to define the best way