The presentation was given at Strategic sourcing conference. The presentation is based on research for my MBA thesis. Focus on transforming the supply chain by using digital solutions. Reducing risk and increasing agility.

1. • Video insert
Digital Transformation of
Procurement
Sanet Shepperson MCIPS
Property and Procurement Executive Cell C

2. • Vidio

3. Procurement =

4. Gross Profit
Operational
Profit
Cash flow
EBITDA
Assets

5. Digital Revolution

6. The digital revolution has affected all aspects of
business, including supply chains.
The Internet of Things (IoT), with its network of
devices embedded with sensors is now starting
to connect everything.

7. Technologies such as RFID and analytics are
combining to help companies to transform
their existing supply chain networks into more
flexible, open, agile, and collaborative digital-
driven models.

8. .
Digital supply chains enable business process
automation, organizational flexibility, and
digital management of corporate assets and
the control of Cost

9. “84% of procurement organizations
believe that digital transformation
will fundamentally change the way
their services are delivered over the
next three to five years. Yet only
32% have developed a strategy for
getting there.”
The Hackett Group

10. Digitization
Is the conversion from analogy
to digital. Atoms become bits
(e.g. digitization of data). You
cannot digitize people.

11. Is the process of using digital
technology, and the impact it
has on business operations
(e.g. digitalization of a process).
Digitalization

12. Digital transformation
Is a digital-first approach encompassing all
aspects of business.
Regardless of whether it concerns a digital
business or not.
It leads to the creation of entirely new markets
and businesses

13. Why do cars have brakes?

14. What happens ?

15. Why do cars have brakes?
Brakes are really important because they deal
with the risks associated with going fast
They Allow you to go faster

16. Current Challenges in Procurement
• Ambiguous requirements
• Supplier due diligence
• Supplier verification
• Limits of Authority
• Ethics and conflict of interest
• Auditability, Corporate Governance
• BEE tracking
• Data accuracy
• Contract negotiation
• Contact management
• TCO/TLC in import products
• Exchange rates
• Visibility
• Aligning Data

17. Less than 25% of the companies surveyed can’t even locate supplier contracts,
let alone monitor and manage contract performance
Most companies have applied a strategic sourcing process to less than half of
their overall spending
Approximately 70% of the companies continue to make purchasing decisions at
the divisional or site levels
Nearly 33% of purchases are off-contract (i.e.) maverick buys
Only a few companies have standardized sourcing or procurement processes
Clear visibility into total enterprise spending is not available
Detailed management reporting and monitoring is difficult or non-existent

18. Theory VS Practical

19. Practical Digital solutions for
Procurement and Supply Chain

20. • Reduction of risk
• Enhanced visibility
• Reduce cost
• Digital Rfx
• Digital contract management
• Digital supply chain
• Digital supplier management
• Ethics and fraud management
• Innovative procurement data utilization
• Digital processes and tools
• Increasing effectiveness and efficiency
• Cold chain management
• IOT
Practical digital solutions for
Procurement and Supply Chain

21. Digitization of : RFx, Contract
management, SRM
• RFx
• Supplier database / Supplier network
• Contract management
• Requisitions
• Purchase orders
• AP

22. • Clear Process
• Clear Procedure
• Clear Specification
• Hierarchy approvals
• Auditable trackable
• Single platform
• Interactive scoring and awarding
• Lead into Contract management

23. Contracts
• Templates
• Hierarchy
• Visibility
• Tracking
• Monitoring
• SLA’s
• Compliance
• Compare

24. Contract Creation and Management
A typical Fortune 1000 Company cannot locate over
10% of its 20,000 – 40,000 active contracts at any given
time.
Contract management gives the ability to:
• Realize negotiated savings
• Minimise value leakage
• Real-time monitoring
• Tracking of contract compliance
• Consistently score suppliers in a centralized way

26. Digitization of
• Due Diligence
• Conflict of interest
• BEE

27. ProcureCheck ensures that your business
complies with all current legislation.
South African
Legislation
• Public Management Finance Act
• Municipal Management Finance Act
• Companies Act
• King III
• Public Administration Act
• Prevention and Combating of Corrupt
Activities Act
• BEE Codes
• National Treasury Regulations and
Guidelines
Global
Legislation
• The Bribery Act affecting the UK and all Commonwealth
countries
• Foreign Corrupt Practices Act enforced by USA

28. Know your employees
Compliance
• Bank Verification
Performance
• Credit Checks
• Operation Risk/Fraud
• Credential vet
• PERSAL
• Sanctions
• PEPS
• Negative News
• SAFPS
• Shell Schemes
• Pass through Schemes
• Property Asset Transfer
Know your vendor
Compliance
• Financial Information on listed
company
• SAFPS
• Shell Schemes
• Pass through schemes
• Property Asset Transfer
Performance
• Company Credit Checks
• Liquidation
• Director Sequestration
Reputational
• Vat
• Judgements online
• Business Status
• BEE Compliance
• Bank Verification
• National Treasury Database for restricted
suppliers

29. What does this Digital solution offer?
• Supply Chain Governance
• Procure Check is a solution designed for the South
African market to assist procurement, compliance,
forensic and internal audit departments in their
procurement vetting, Audit processes and supplier
management.

30. Procure Check uses advanced technology and
matrix of databases to highlight the conflicts of
interest that exist in both your human resource
and procurement environments.

32. This BEE focused digital solution offers:
• Central Repository
• Validated B-BBEE data – skilled call centre
• Validates B-BBEE data
• Client has online access to their supplier data
• On-going Compliance Process – more efficient
than a once-off exercise – technology driven
• Economies of Scale
• Audit Trail
• Preferential Procurement Dashboard Reporting

33. This digital tool will assist with B-BBEE Compliance
Obtain the B-BBEE certificate of each of the active
vendors located in your database.
It will then check the validity and expiry date of the
certificate and in the event of the expiry date having
been met,
It will ensure the latest certificate is obtained.
B-BBEE Compliance

34. VALUE PROPOSITION
Supplier
Compliance
Management
Preferential
Procurement
Reporting
Preferential
Procurement
Outcomes
FORWARD THINKING BEE SOLUTIONS © B1SA BEE SOFTWARE
MANAGEMENT SOLUTIONS 2017

35. PREFERENTIAL PROCUREMENT
DASHBOARDTARGET
(RANDS)
ACHIEVED
(RANDS)
TARGET
(%)
ACHIEVED
(%)
PROGRESS
(%)
TARGET
(POINTS)
ACHIEVED
(POINTS)
SCORECARD POINTS
REPORT PERIOD Jul 16 to Jun 17 ALL SPEND 12 105 382 085 12 945 730 346 840 348 261 OVER TARGET 80% 86% 107% 5.00 5.00
QSE 2 269 759 141 1 674 239 648 -595 519 492 UNDER TARGET 15% 11% 74% 3.00 2.21
TOTAL SPEND 27 781 494 172 EME 2 269 759 141 1 541 395 155 -728 363 986 UNDER TARGET 15% 10% 68% 4.00 2.72
EXCLUDED SPEND 12 649 766 566 BO 6 052 691 042 4 520 698 554 -1 531 992 488 UNDER TARGET 40% 30% 75% 9.00 6.72
MEASURED SPEND 15 131 727 606 BWO 1 815 807 313 1 578 619 525 -237 187 787 UNDER TARGET 12% 10% 87% 4.00 3.48
VENDOR NAME STATUS SPEND B-BBEE SPEND VENDOR NAME SPEND VENDOR NAME STATUS SPEND
SUPPLIER 6 1 894 576 200 1 207 677 870 SUPPLIER 2 3 513 225 848 SUPPLIER 12 3 482 803 176
SUPPLIER 10 3 802 255 319 882 480 851 SUPPLIER 3 2 241 950 655 SUPPLIER 16 10 397 338 312
SUPPLIER 18 2 367 686 316 459 607 895 SUPPLIER 5 1 136 614 586 SUPPLIER 20 5 333 347 050
SUPPLIER 15 3 403 643 061 444 007 367 SUPPLIER 7 850 733 398 SUPPLIER 24 10 218 334 366
SUPPLIER 17 4 373 385 546 373 385 546 SUPPLIER 8 844 653 328 SUPPLIER 28 10 186 680 641
SUPPLIER 22 3 298 457 190 328 302 909 SUPPLIER 9 818 550 126 SUPPLIER 29 7 173 297 664
SUPPLIER 14 5 404 260 425 323 408 340 SUPPLIER 11 776 118 276 SUPPLIER 33 4 126 742 062
SUPPLIER 23 2 227 216 657 284 020 821 SUPPLIER 13 481 598 020 SUPPLIER 35 10 103 345 491
SUPPLIER 27 2 191 427 951 239 284 938 SUPPLIER 19 335 101 440 SUPPLIER 56 5 68 555 378
SUPPLIER 30 3 167 776 985 184 554 683 SUPPLIER 21 305 534 805 SUPPLIER 76 10 44 074 862
SUPPLIER 32 3 129 615 849 142 577 434 SUPPLIER 26 208 052 871 SUPPLIER 81 9 39 817 166
SUPPLIER 36 2 102 811 926 128 514 907 SUPPLIER 31 134 675 302 SUPPLIER 94 8 32 096 554
SUPPLIER 25 6 211 164 457 126 698 674 SUPPLIER 43 94 074 671 SUPPLIER 101 6 30 208 224
SUPPLIER 38 2 101 080 698 126 350 872 SUPPLIER 48 78 129 985 SUPPLIER 107 10 28 592 540
SUPPLIER 41 2 98 856 962 123 571 202 SUPPLIER 52 70 200 280 SUPPLIER 110 2 28 122 273
SUPPLIER 42 2 98 250 756 122 813 445 SUPPLIER 57 64 354 769 SUPPLIER 111 9 27 855 852
SUPPLIER 34 3 109 568 875 120 525 763 SUPPLIER 66 51 109 697 SUPPLIER 118 5 26 207 205
SUPPLIER 37 3 101 082 533 111 190 787 SUPPLIER 70 49 573 839 SUPPLIER 123 6 25 114 665
SUPPLIER 39 3 100 984 186 111 082 604 SUPPLIER 71 47 600 602 SUPPLIER 152 10 19 219 648
SUPPLIER 45 2 87 527 025 109 408 781 SUPPLIER 78 42 556 349 SUPPLIER 154 9 19 117 920
SUPPLIER 44 3 93 626 362 102 988 999 SUPPLIER 86 36 327 985 SUPPLIER 174 8 16 705 770
SUPPLIER 49 2 75 545 221 94 431 526 SUPPLIER 105 29 233 359 SUPPLIER 182 6 15 871 197
SUPPLIER 47 3 84 412 692 92 853 962 SUPPLIER 106 29 028 332 SUPPLIER 192 10 14 747 757
SUPPLIER 53 2 69 890 513 87 363 142 SUPPLIER 112 27 824 001 SUPPLIER 200 9 13 641 602
SUPPLIER 54 2 69 629 263 87 036 578 SUPPLIER 122 25 650 965 SUPPLIER 203 8 13 295 501
Other 6 620 591 252 6 531 590 451 Other Other 361 270 513357 293 079
TOP CONTRIBUTORY SPEND EXCLUDED SPEND
20.13 81%
OVERALL PROGRESSDIFFERENTIAL (RANDS)
TOP NON-CONTRIBUTORY SPEND
100%
100% 74% 87%75%
ALL SPEND QSE EME BO BWO
68%

36. Digitalization of TCO and LCM –Trade
Cloud

37. Managing the import supply chain requires specialised capabilities and system integrations
Global Supplier
Management
Purchase Order
Management
Global Logistics
Management
Global Trade
Management
Foreign Exchange
Management
Financial
Management
Pipeline
Management
• Find suppliers
• On-board
suppliers
• Manage
relationships
• Manage quality
• Consumer
Protection Act
complexities
• Placing,
accurately
costing and
managing global
orders
• In-land transport
(foreign and
local)
• Freight
consolidation
• Carrier
allocation
• Shipping
• Ports
management
• Demurrage
• Tariff/HS coding
• Duties
• Clearance
• Trade
agreements
• Quotas
• Treasury
• Letters of credit
• Acquisition of
forex
• Payment of
foreign suppliers
(product and
services)
• Landed cost
calculation for
decision-making
and stock
valuation
• General ledger
• Visibility of
product in
pipeline for
decision-making
Capability sources:
• PLM
• Quality Houses
• Agents
• TRADECLOUD
AND:
• ERP
• TRADECLOUD
AND:
• Internal shipping
• LSP Agents
• TRADECLOUD
AND
• Niche service
providers
• TRADECLOUD
AND
• Internal Treasury
• Banks & Service
Providers
• TRADECLOUD
AND:
• ERP
• TRADECLOUD
Digitizing and Managing the Import Supply Chain

38. Integrated Tradecloud System with Services
Clients
Treasury
Management
Module
Logistics
Integrations
TRADECLOUD SYSTEM & SUPPORT SERVICES OVER WEB
Pre Order
Shipment
per Unit
Costing
Real Time
Costing
Functionality
Track &
Trace
Updates
Financial
Impacts on
Cost per
Unit
FX Exposures
FX
Cover
Cash Flow Exposures
Provides
Clients
• Reports &
Triggers
• Cost per
unit
Updates
Post Order
Shipment
per Unit
Costing
Supplier
Data
Product
Data
Logistics
Rates
Live FX Treasury
Rates Feed
Trade Finance
Live Tariff Feed
from SARS
Customs

40. • Insert Video (IOT)

41. “The Internet of Things (IoT) is a
network of physical objects
embedded with electronics,
software, sensors and network
connectivity. These objects collect
and exchange data without the need
for human interaction. Each of these
technologies relies on the IoT in a
different way, providing a
competitive advantage or
differentiator.”

46. What We Monitor

47. More efficient use of resources and
utilities, avoiding surplus material pile
up and smarter production rates based
on demand.
Real-time asset management shows the health
and status of various machinery, allowing for
pre-emptive maintenance.
Lower cost of ownership, smarter spending and
workforce optimisation.

48. Create a complete overview
of your entire operation,
digitise it, and optimise it.
Predictive Maintenance
Energy and water efficiency
Time Saving
Improved Safety
Process
Automation
Integrates the entire mining ecosystem into a single
overview of all processes
Predictive and incident analysis.

50. Procurement Faces a Perfect Storm
Procurement professionals face a
perfect storm because the procurement team must:
Support the rest of the organization in its digital
transformation
Manage the impact of digital technologies on the
supply market
Become a digital master itself, so as to continuously
increase its value proposition.

51. Continual connectivity
Organizational speed.
The companies that recognize
market change and opportunities
Will profit the most from digital
transformation
Deluge of information.
Information is being collected by
companies from multiple
channels, devices, and forms at
tremendous speeds with minimal
latency

53. Risk in Transforming digitally
• Cybercrime and Hacking of systems
• Cyber criminals are indiscriminate. Where there is a
weakness, they will try to exploit them.
• Increasing the number of interfaces and the
intertwining of welfare and commercial use, create
a wealth of new opportunities for any attacker.
• An organization must understand the cyber threats
it faces, and then adopt a cyber security strategy
that is proportional to the risks faced – based upon
the outcomes of a risk assessment

54. Transitioning to the digital supply chain requires a complete
assessment of current processes, leading to a detailed road
map to move from current state to future state.
Going forward
The focus must be on investment in training people to
improve their analytical skills.
Changing corporate behaviours to sense demand,
understand the signals that matter, and act on the insights.
As a result, the birth of digital forecasting will emerge that
will be more anticipatory, rather than prescriptive

55. The gradual replacement of human
judgment across the supply chain.
This will require companies to evolve in order to
best support areas such as automated data
gathering, tactical demand planning, procurement,
and execution.
Digital transformation will cross many facets of a company's
business, requiring collaboration platforms, collaborative
economy services, and e-commerce
Companies will need to recognize and embrace the
emergence of cloud, mobile, social, big data, and-most of all-
predictive analytics.