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FOREWORD
The Eskom Power Series is a comprehensive series of technical reference books
used primarily by power utilities around the world. Based on the success of this
series and the Institute of People Management’s acknowledgement that there is
a global trend towards professionalism, the Professional Development Series was
conceived. This series is aimed at developing the various professions within South
Africa so that large state owned enterprises and the private sector can grow and
thus facilitate job creation in the country. Unlike the Power Series, this new series
will have a much broader readership including executives, professionals, technical
staff, non-technical staff, managers and academics residing in the private sector,
government State Owned Companies (SOCs) and academic institutions. There was
a fair amount of debate as to which should be the first book within the series. The
question posed was which area could add the most benefit to businesses and the
general consensus was that a book on procurement would add significant value.
Most practical books currently available focus on supply chain management with
little insight into the procurement challenges faced by organisations.
Boston Consulting Group (BCG), in partnership with Wharton University in USA,
performed a roundtable with about 30 European Chief Procurement Officers (CPOs).
This survey discussed the most challenging topics facing procurement. People
training and development was identified as the key challenge for procurement.
Based on this study and work done within the Eskom procurement department, this
book will be a valuable resource for the training and development of procurement
professionals and other staff. Being Volume 1 of the Professional Development
Series, the procurement book will provide guidance to leaders, managers,
professionals, staff, academics and students. It does not represent present practice
within Eskom or any other organisation but rather aims to develop the international
best practice for procurement that companies should adopt. Contributors have
been sourced locally and internationally to give the book a good balance between
international best practice and local challenges. They are academic thought leaders
in procurement with extensive experience. The chapters have been written in a
practical yet academically rigorous way.
Companies should move away from transactions to lifelong ongoing Supplier
Relationship Management (SRM) philosophies. This concept is introduced in
Chapter 5 where it is confirmed that suppliers can contribute to the competitive
advantage of an organisation. This creates a win-win situation for the organisation
and the supplier. Nobel Prize winner Nelson Mandela stated: “If you want to make
peace with your enemy, you have to work with your enemy. Then he becomes
your partner.” He used this philosophy to work with the former government to
develop South Africa’s first democracy. Companies can learn from his approach
by creating trust relationships with suppliers. Employees within companies can
use it to develop trust relationships between the various departments, thus forming
the basis for Employee Relationship Management (ERM), which can significantly
improve delivery on procurement projects. During a mentorship programme
presented in the project procurement department in Eskom it was apparent that