Current Challenges_Freddie

Current Challenges_Freddie

1. Structure / Configuration

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   • Functional Positioning based on Subject Matter Speciality
     • Autonomy of function
   • Re-organised based on personalities, characters & trust issues rather than functional core execution
   • Misalignment of the Function OD vs Group
   • Fragmented Function
     • Definition & understanding of functional responsibilities
     • Isolated core functions- Fragmented leadership at Group level

2. Capability & People

   • Lack of Capability and functional proficiency Development
     • lack of continuous & practical procurement upskilling
       • Significantly reduced investment on supply chain skills
       • Management commitment in personal mentoring, guidance & skills transfer
     • Lack Clear Career Progression
     • Incorrect matching of skills
   • Loss of specialist skills
     • Centralised Consultant led proposed strategy
     • Loss of strategic sourcing and contract management discipline
     • Exodus of experienced subject matter experts with capability
   • Regression over time of SCM alignment to best practices
     • loss of previous gains obtained through professional partnerships eg. industry round-tables
     • not keeping abreast with global functional trends
   • Despondent & Unproductive employees
     • Morale Degeneration
       • Uncertainty, anxiety, insecurity and fear
       • Lack of trust & empowerment
       • Personnel feeling Marginalised
     • Strained Workforce as result of not filling vacancies

3. Procurement Strategy

   • No well defined Sourcing Approach
     • Adhoc centric sourcing
     • Reactive procurement
     • Abuse of Supplier Development execution
     • Cost effective procurement vs empowerment Agenda
   • None existence of Functional Strategy

4. Regulatory

   • Fast paced & Abrupt NT directives
   • PPM alignment with NT directives
   • Convert to PDF??
   • DPE requirement for the implementation of ESD
     • Lack of ESD implementation and monitoring (Social obligation and SD

5. Process

   • New DOA framework that promotes further functional inefficiencies & loss of functional control
   • 3rd party involvement in core function & sourcing activities
   • Cumbersome end-to-end processes
     • Administrative focused procurement rather than enabling value-add execution
       • Lack of in-depth market research and clear commodity benchmarking
       • Not taking full ownership of the process
       • Inefficient sourcing strategies (relevancy & why)
       • Inadequate of demand planning
         • Inefficient forecasting
         • Lack understanding of the benefits of demand planning
     • Over engineered bidding documents
       • Perceived compliance
       • Irrelevant returnables
       • High influx of non-responsive bids
     • Compromised & conflicting Specifications that are not fit for purpose
       • Lack of Bid specification review
       • Specification research inline with product generation level
       • Inefficiency of drafting specs (Skills to actually draft)
   • Risk exposure of Transnet Intellectual Property to external parties
     • Consultant, multi-tier subcontracting
   • Ineffective consolidated standardised Supplier Development approach
     • Lack of clear sub-contracting processes
     • inefficient monitoring of sub-contracting in line with required threholds
     • Lack of SD classification framework across the value chain (Tier 1-Tier 3 supply)
   • manual intensive process

6. Technology

   • Lack of knowledge management
     • Repository of specifications
     • Lack of centralised & standarised RFx documents
     • ineffective Supply Management critical documentation management & storage (strategies, methodologies, structures, processes...etc)
   • under utilisation of SAP and its configuration
     • unavailability & loss of specialised skills competency for SAP MM support & enablement
     • Not leveraging on internal pockets of excellence
     • insufficient system capability knowledge
   • SAP ECC risk due to SAP AG support being discontinued, this will impact future architectural lanscape
   • Poor continuation of standalone systems and value add questionable

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