The 2010 CIPS Southern Africa Procurement Awards celebrate the achievements of some of the region’s top performers. SM sees how four of the winners won the judges’ admiration – and hearts.

Best process improvement initiative: Standard Bank

When Standard Bank realised its purchasing department was not viewed as strategic by those it served, it launched an internal investigation. This research confirmed those views and revealed opportunities for improvement. “Project Prologue” was launched to overhaul procurement and make sure it was more relevant to its business partners. The work was overseen by a project board with representation from all relevant departments.

Key business objectives and the means to achieve them were identified and a carefully structured, highly consultative approach to delivery was agreed. To date all deliverables have been met.

The firm says the project’s major success has been the introduction of a “value-based procurement approach”. This means the procurement strategy is designed around business needs. Savings delivered in 2009 exceeded the target, and were more than double the savings of the previous year.

With the foundations laid by the first phase of Project Prologue, the next steps include applying Six Sigma techniques to improve processes, training for buyers, and additional modules in the company’s SAP supplier relationship management system.

Judges said: “The winner demonstrated a holistic approach to the transformation of the supply chain, bringing around significant cost savings and value for money.

“The [procurement team] included all of the supply chain in consultation and ideas for improvement and engaged them where necessary. They aimed to create end-to-end transformation and engagement and were successful in achieving it.”

☛ Standard Bank also got the gong for best green procurement organisation

Best people development initiative: Transnet

At a recent supply chain event in South Africa, it was argued that the government should be taking the lead on standardising skills and terminology for procurement and supply chain professionals.

“I pointed out that Transnet, and now also Eskom, are working with CIPS and the Department of Public Enterprises (DPE) already,” Patricia Gradidge, head of strategic: logistics, strategic supply management, for Transnet, tells SM. Transnet is behind South Africa’s national transport businesses. And it was this work that won Transnet recognition in the “best people development initiative” category.

The DPE, working with its two targeted state-owned enterprises (SOEs), Transnet and Eskom, developed the Integrated Capability and Capacity Procurement Programme for SOEs in the Southern African Development Community region. The aim was to institute better training and practices and improved procurement and supply chain capacity across a number of SOEs.

Transnet wished to introduce internationally recognised purchasing and supply management qualifications (Introductory Certificate, Certificate, Foundation Diploma, Advanced Diploma and Graduate Diploma) from CIPS. So it set up the Transnet Procurement Academy in February 2008.

There are 271 students on the programme now, and champions are appointed to ensure they are on track and encourage take-up.

The company has also added courses that focus on logistics, particularly inventory management, because it realised improvements in this area could help it become more competitive, and to train supply chain professionals in an integrated approach and strategy.

Judges said: “They developed a strong, well-structured career development programme that enables individuals who have successfully completed qualifications to move up the ladder within the organisation and realise their potential. The organisation is moving towards developing new competence, which is leading to continuous improvement.”

INDIVIDUAL AWARDS

The awards team said those who won the individual accolades have made a contribution to their organisation in innovation, leadership and knowledge sharing. Their initiatives have had a considerable impact on the bottom line. The winners demonstrated a commitment to the profession and to promoting good procurement.

Best Procurement Professional of the Year, female: Sashnee Mungroo, working for Aveng
Sashnee Mungroo began her procurement career in 1994 at state-owned energy company Eskom, before joining Grinaker-LTA, a construction group which is a division of Aveng, in 2008.
The newly appointed managing director of Earthworks (within Aveng) wanted the business, which was losing money, to become more competitive and identified procurement as an area key to turning things around. The procurement manager post was created and Mungroo was appointed to the role. She is now transforming the department from a buying to a strategic supply chain function.
Judges said: “This person has brought around a real change in how the organisation works and has taken the lead on developing new approaches to procurement that have proved to be a real value-add. She has moved the organisation from 10 per cent to 85 per cent controllable spend and included internal and external stakeholders in the process.”

Best Procurement Professional of the Year, male: George Brakoh, Newmont Ghana Gold
George Brakoh joined Newmont Ghana Gold in September 2004. In his current role as local supplier and contractor development manager – Africa, Brakoh is responsible for developing a sustainable policy for local suppliers and contractors for the Ahafo and Akyem mines in Ghana. He works with the International Finance Corporation on the Ahafo Linkages Program, a three-year development initiative for local businesses near the Ahafo mine.
The programme aims to increase the income level and generate employment by improving the competitiveness of the local enterprises involved in mining.
Judges said: “This person has demonstrated an unusual commitment to procurement. His dedication to his work and that of his organisation has been outstanding. The judges were quite moved by the achievements of this person, and the success not just for him but for the local economy.”

☛ Newmont Ghana Gold also picked up awards for best procurement community and best supplier diversity project

ALL WINNERS

 Best procurement project: ABSA Bank
 Best people development initiative: Transnet
 Best procurement community: Newmont Ghana Gold
 Best procurement professional of the year, female: Sashnee Mungroo
 Best procurement professional of the year, male: George Brakoh
 Best process improvement initiative: Standard Bank
 Best supplier diversity project: Nemont Ghana Gold
 Best green procurement organisation: Standard Bank