BEE procurement, specifically implementing the New Codes, is considered the biggest challenge that South African procurement professionals currently face, said 481 respondents to a SmartProcurement survey.
The concern around The Codes is unsurprising, considering many organisations believe they stand to lose a BEE level or two. Concerns around the BEE Codes will be extensively debated at Smart Procurement World 2014.
Asked to choose their top-three challenges, 42% (202) of the 481 respondents said the BEE Codes keep them awake at night, with ‘contract management’ and ‘compliance’ sharing second place with 27%.
The concern around contract management speaks to a growing awareness in the country that up to 95% of spend under contract occurs after contract signature, during the contract management period, and consequently is a time that requires strict monitoring, but currently receives inadequate attention from business or government, which has led to numerous contracts that fail to deliver and consequent service delivery protests.
Noteworthy is that ‘enterprise/supplier development’ came in third (26%), above ‘skills transfer/capacity development’ (23%) and ‘organisational efficiency and strategic alignment’ (22%). It is possible that ED is among the top-3 challenges because of the greater weighting placed on it in the revised Codes and the strong role it plays in South Africa’s economic development.
It is interesting that ‘board-level buy-in’ shares last place, as less of a concern. Are South African procurement professionals brilliant communicators who enjoy a lot of board support? Or does the ranking suggest that ‘board-level buy-in’ appears on the agenda because it is a global concern, rather than a pertinent South African concern?
An additional challenge provided by one of the survey respondents is worth mentioning: “Matching treasury regulations to business-related outcomes”. We would like to hear your comments in this regard – are they chalk and cheese?
Finally, in a country where allegations of fraud and corruption are common place it is re-assuring that ‘transparent procurement and fraud reduction is among the top-7.
Overall the top challenges for procurement and supply chain are:
1. BBBEE procurement – New codes
2. Contract management
3. Compliance
4. Enterprise / Supplier development
5. Skills transfer and capacity development
6. Organisational efficiency and strategic alignment
7. Transparent procurement / Fraud reduction
For extensive discussions around the challenges identified in the survey, join us at the 2014 Smart Procurement World Conference: enjoy 7 conference streams and 2 exhibitions under one roof, including the Absa Enterprise Development Expo.
Latest Research: Where does SA procurement face it biggest challenges?
BEE procurement, specifically implementing the New Codes, is considered the biggest challenge that South African procurement professionals currently face, said 481 respondents to a SmartProcurement survey.
The concern around The Codes is unsurprising, considering many organisations believe they stand to lose a BEE level or two. Concerns around the BEE Codes will be extensively debated at Smart Procurement World 2014.
Asked to choose their top-three challenges, 42% (202) of the 481 respondents said the BEE Codes keep them awake at night, with ‘contract management’ and ‘compliance’ sharing second place with 27%.
The concern around contract management speaks to a growing awareness in the country that up to 95% of spend under contract occurs after contract signature, during the contract management period, and consequently is a time that requires strict monitoring, but currently receives inadequate attention from business or government, which has led to numerous contracts that fail to deliver and consequent service delivery protests.
Noteworthy is that ‘enterprise/supplier development’ came in third (26%), above ‘skills transfer/capacity development’ (23%) and ‘organisational efficiency and strategic alignment’ (22%). It is possible that ED is among the top-3 challenges because of the greater weighting placed on it in the revised Codes and the strong role it plays in South Africa’s economic development.
It is interesting that ‘board-level buy-in’ shares last place, as less of a concern. Are South African procurement professionals brilliant communicators who enjoy a lot of board support? Or does the ranking suggest that ‘board-level buy-in’ appears on the agenda because it is a global concern, rather than a pertinent South African concern?
An additional challenge provided by one of the survey respondents is worth mentioning: “Matching treasury regulations to business-related outcomes”. We would like to hear your comments in this regard – are they chalk and cheese?
Finally, in a country where allegations of fraud and corruption are common place it is re-assuring that ‘transparent procurement and fraud reduction is among the top-7.
Overall the top challenges for procurement and supply chain are:
1. BBBEE procurement – New codes
2. Contract management
3. Compliance
4. Enterprise / Supplier development
5. Skills transfer and capacity development
6. Organisational efficiency and strategic alignment
7. Transparent procurement / Fraud reduction
For extensive discussions around the challenges identified in the survey, join us at the 2014 Smart Procurement World Conference: enjoy 7 conference streams and 2 exhibitions under one roof, including the Absa Enterprise Development Expo.
Related Posts
The Transformative Power of AI in Corporate Travel Procurement
Interrupted Supply Chain Infrastructure: Global Supply Risk or Opportunity?
Navigating Port Challenges: The Path Forward for South Africa’s Port Infrastructure
A Comprehensive Guide to Overcoming Supply Chain Risks in 2024
Latest Jobs
Management Consultant
R 1.2 Mil – R 1 Mil
Senior Accountant
Confidential
Tax Practitioner
R 360 K – R 300 K
Technical Head – Infrastructure & Services
R 2.1 Mil – R 1.6 Mil
Supply Chain Manager
R 1.7 Mil – R 1.4 Mil
Regional Order Fulfilment Manager
R 1.5 Mil – R 1.3 Mil
Leaders Profile
The Incredible Power of Networking & Collaboration For Business Growth
Talking to Jothi David
Leadership Profile: Riccardo Benedetti
Procurement Leader: Colette Yende
Procurement Leader: Kamalasen Chetty, Visa
Movers and Shakers in Procurement
Sean Slabbert
Deon Mocke
Zunaid Rasdien MCIPS
Dr Khomotso Mhelembe
Sanet Shepperson MBA (CIPS), FCIPS, MCIPS
Upcoming Courses
Fundamentals of Stores and Stock Control Training Course
Procurement Contract Management and SLA Training Course
Ethics in Procurement and Supply Chain Management
Supervisory Skills for Procurement Managers
Preferential Procurement – B-BBEE (1 Day)
Introduction to Supplier Relationship Management
What you might have missed
Transforming Procurement and Business through Storytelling
An Analysis of Key Procurement Best Practices
A Strategic Guide to Navigating Legal Services Procurement
Difference Between Strategic Sourcing and Category Management
Navigating The Red Sea Crisis: What You Should Be Doing