To manage and facilitate the purhase of goods, services and capital equipment in an efficient, cost effective manner that meets with both the B.U’s and the Group’s commercial, environmental, social and legislative objectives / obligations.
Develop and effect a strategic procurement vision that will not only deliver a sustainable, globally relevant function but will assist the company in its drive to become the lowest cost producer in South Africa.
NB – The assignment to be accomplished by the job position usually comes within the scope of :
o a general policy o clear and well-defined objectives
o methods and procedures to be conceived o methods ands procedures to be developed
o already established activities and general instructions by hierarchy
A) Policy: Procurement
Establish the procurement mandate for the BU. and direct the allocated resources towards the fulfilment of this mandate including materials management
Draw up a Procurement and Inventory/Warehouse Policy documents that seek to define and regulate how the Group will conduct business relations with its external vendor and internal customer base. These documents will incorporate the ethos and communicate the Group’s procurement objectives and its strategy for achieving the same; review on periodic basis to ensure continued compatibility with changing environment.
Design procurement and warehouse processes and control procedures that ensure good corporate governance i.e. meet with the stipulated standards of Internal Control and/or any other legislative, accounting/auditing requirements that may be effected from time to time.
Ensure that both Procurement Policies and Processes compliment one another at all times.
Structure, resource, empower & monitor the entire procurement function (P2P – sourcing, transacting, warehousing, expediting and receipting) in order to both enable and measure performance, vis a vis its designed mandate, throughout the Cement Business Unit.
Communicate said policies and procedures effectively to the respective stakeholders and enforce consistency of application
A) Operational: Procurement
To source, negotiate and contract all major raw material supplies, manage such contracts and restrict any price changes to within budgeted targets.
Ensure appropriate involvement and influence in all major contracts in order to facilitate the management of business risk and working capital
Determine and identify the purchasing synergies that exist within the group, or within the South African B.U’s and leverage these synergies in order to maximise potential cost benefits.
Set short-term performance targets for the Group Purchasing function in line with Group cost saving targets, PPP submissions, B.E.E objectives etc., monitor, guide and manage.
Design and specify user-friendly reports for measuring and interpreting performance against operational and strategic objectives.
Create awareness and drive within the purchasing activity for the need for good corporate citizenship to be built into the purchasing function & process
Management of all major contracts ensuring both that they adequately protect and enhance the company from both the commercial and legal aspects.
B) Warehouse & Inventory Management
Ensure the compilation and the adequate internal broadcast of Warehousing policies and procedures
Secure the proper mandate for the Warehouse ensuring it has appropriate involvement in decisions regarding stock to be kept on site.
Determine a sustainable vision and relative strategic overview for the efficient, cost-effective management of inventory levels and movement.
Ensure on-site efficiency of material flow / handling (management) from receiving through to end user.
Ensure such strategies are applied and complied with at all sites throughout the B.U.
Conduct periodic customer surveys to assess efficacy of the warehouse operation.
Manage the complete integration of Purchasing and Materials Management throughout the cement B.U
Number of people managed:
Indirects: FTE’s: 15 + 2 part time
Budget or operating account data:
Procurement Department budget circa R5.5 mil.
Longmeadow R2.3 mil
Lichtenberg : R3.2 mil
Estimated EPA of R1.2 bil p.a
Transactional Volume: 48,000 p.a
External: Supplier Base, External Auditors, Government Depts. Consultants;
Internal: Entire company
MRO Inventory Managed
Lichtenburg: R70.0 mil; 10,700 line items
Tswana: R4.6 mil; 500 line items
Randfontein: R14.0 mil; 650 line items
Richards Bay: R1.5 mil; 100 line items
Completeness, appropriateness of policies and procedures once tested.
Degree of purchasing efficiency achieved in meeting Customer requirements.
Amount of savings generated – Group standard 2% of EPA
Appropriate number of suppliers ensuring greater service and product deliverables
Reduced maverick spend, degree of compliance to published procedures
Reported metrics on monthly basis
Periodic price estimates, budgets, generation of various business models to determine directional strategy for make-or buy decisions, sourcing etc.
Micro economic forecasting for goods and services
To offer vision and direction in facilitating world class purchasing performance
Greater level of supply base management, upgrade of supplier profile through performance measurement, coaching and/or de-sourcing
Ensuring good corporate citizenship by engaging purchasing and suppliers in environmental, social and economic efforts that improve sustainability of the Enterprise
Build quality and due diligence into the procure to pay business process to manage risk without adversely affecting business effectiveness
Manage supply base in accordance with SRM methodologies
Contractor Safety Management
To design and effect procurement processes, policies and strategies aimed at structuring and directing group purchasing spend (of approximately R1.2 billion annually) in a way that reflects LSA’s commercial ambitions and facilitates the achievement of such while, at the same time, recognising the Group’s operational, corporate & legislative responsibilities. To manage material efficiently and effectively from point of receipt up until use or disposal in a way that offers maximum benefit to the company. Protect the company’s commercial, legal and environmental interests by regulating interaction with 3rd parties through the negotiation, implementation and managed compliance of well structured contracts.
PROFILE OF NECESSARY COMPÉTENCIES
– Level of training:
Matric + 3 years; preferably a commercially focused degree majoring materials management / business management and with a broad financial emphasis. Post Graduate studies with a distinct bias for procurement or logistics will be an advantage
– Technical competencies:
Self-motivated, lateral thinker with good analytical skills,
Sound understanding of costing principles i.e. able to manage product cost (overhead recovery postulates); determine cash flows, ROI etc.
Good understanding and awareness of software solutions and their applications.
Strong negotiator, with above average communication skills – both verbal and written.
Knowledge of SRM principles.
Excellent user proficiency in Microsoft and associated software.
Comfortable with internet use and other market intelligence sources.
At least 1 yr tertiary study of ‘Mercantile Law’ with extensive experience with the contract of sale for goods, services and Capital (turn-key) projects;
Sound knowledge of manufacturing and service markets
Understanding of forex and S.A exchange regulations
Understanding of intermodal freight theory and strategic use of such
Experience of dynamics present in commodity markets (esp. coal)
– Behavioural competencies:
Confident decision maker,
Assertive, persuasive, with well developed interpersonal and leadership skills. .
Able team player
Well developed interpersonal skills
– Managerial competencies:
Sound knowledge of internal control systems and of ‘good governance, best practices
Intimately connected to value chain principles, segmentation, Total Cost of Ownership etc;
Extensive management experience (minimum 7 years) with sound business acumen