1. Smart Procurement World
Future Proofing the organisation through World Class Procurement Practices
Smart Procurement World
Speaker details:
Meshern Govender
Chief Procurement Officer
Standard Bank South Africa

2. Presentation Outline The Evolution of the SBSA Procurement Purpose
The Capability Landscape
People
Process
Technology
The Measures of Success

3. The Evolution of the SBSA Procurement Purpose
Present State
Risk
Mgt
Legislative Compliance
Continuous Improvement
(Quality of Service)
Cost Management
(Reduction in Total Cost of Ownership)
A quantum leap forward!
Past View
Back Office, transactional focused - buying/ fulfilment function
Elevated status of Procurement – considered a value enabler for Business units across the Organisation

4. The Capability Landscape
BUSINESS PARTNER
Relationship Management
SUPPLIERS
Inward Mgt Focus:
Demand mgt
Compliance
Service delivery
Outward Mgt Focus:
Performance reviews
Compliance
Supplier development
Strategic Sourcing
Contract Management
Order Fulfilment – Procure to Pay
Analytics/ Business Intelligence
Logistics Management Services
People
Process
Technology
Delight Index/Feedback

5. Investment in People (The Prosperity Partnership)
Alignment
Development
Progression
Time
People Development Continuum
Career Pathing
The path of progression:
Maturity curve per capability;
Cross-skilling and up–skilling through job rotation;
Personal development plans
Culture of Continuous Improvement
Help your people get things right:
Competency based training – CIPS, SLA’s, Essentials of a Contract, Financial Management;
On the job training – classroom based learning, e – learning, training manuals, proficiency assessments
Competency
Set the minimum standards:
Document the Framework – map the career progression path;
Define the competency levels – minimum standards;
People Assessment
Basics:
Get the basics right:
Job descriptions;
Performance contracts;
Personal Development
Induction pack
Creation of a talent nursery through a defined procurement competency framework. The framework underpins the career progression path of our people.

6. Business Premise: Scalable and Transportable Blue Print
Process Framework
Process Framework
Process Blue Prints
Level 5 - Conceptualisation
Level 6 – Activity/Execution
Process Proficiency
Minimum standards for proficiency – both basic and advanced;
Training – Classroom Based, E – learning;
User Manuals and knowledge repository;
On the job coaching;
Process adherence audits
The Value
Coherency in service delivery – greater advocacy;
Defined metrics – alignment to KRA’s
Risk mitigation and value creation – minimum standards;
Lean principles in operation – removal of wastage/reduction of transaction costs;
Continuity of operations – documented ways of working;
Supplier segmentation
Business Premise: Scalable and Transportable Blue Print

7. Information Technology
Integrated
System Integration
Master Data clean up – get the foundation right
Procure to Pay Hub
Optimised
Contract Life cycle management;
Vendor managed master data
E-sourcing;
Reverse Auctions
The Value
Spend visibility;
Standardised Metrics;
Reduced transaction cost of service;
Improved procurement turnaround times – greater advocacy;
Reduction in wasteful expenses

8. Measures of Success Defined Hard metrics:
Legislative Compliance (BBBEE):
Purchase Order Spend (PO):
Creates spend visibility;
Guards against payment hijacking;
Promotes good procurement governance.
Total Cost of Ownership Savings:
Aims to unlock sustainable value in the organisation;

9. The Measures of Success
Voice of the Customer
Voice of the Supplier
Formal measures in place to track Business Partner satisfaction.
Mutually Beneficial
SBSA Service Delight
Supplier
Service Delight
Supplier Satisfaction Score

10. The Measures of Success
Industry Recognition
Best Process Improvement Award (CIPS 2010)
Best Green Organisation Award (CIPS 2010)
Logistics Enviro Award (22nd Logistics Achiever Awards)
Voice of the Industry