Latest Research: Where does SA procurement face it biggest challenges?

| 0 Comments

 

BiggestChallenges.JPGBEE 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.
 

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

Career opportunites

Marketing Executive

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Geographical Area: Midrand GautengSalary: Market related2 Years Marketing ...More

Head: Supply Chain Management (P6)

  • <500 000 >500 000 Limpopo Permanent Procurement Management Supply Chain
North east of the Tropic of Capricorn, just ...More

Purchasing and Supply Manager

  • <500 000 >500 000 Gauteng Permanent Procurement Management Supply Chain
Purchasing and Supply ManagerThe CSIR has a vacancy ...More

Senior Manager Public Sector

  • >500 000 Gauteng Permanent Procurement Management Projects / Category Management
 Senior Manager Public SectorTotal Cost to Company: R1.1mil ...More

Senior Manager: Mining

  • >500 000 Gauteng Industrial Engineer Permanent Projects / Category Management
Senior Manager: MiningTotal Cost to Company: R900k – ...More

SUPPLY CHAIN MANAGER

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
SUPPLY CHAIN MANAGER(Total Cost to Company R750k – ...More

Master Data Management Advisor

  • >500 000 Gauteng Permanent Procurement Management Projects / Category Management
 MASTER DATA MANAGEMENT ADVISOR(Total Cost to Company R750k ...More

PRO - Performance Reporting

  • >500 000 Permanent Procurement Consultant Procurement Management Projects / Category Management
PRO - Performance ReportingTotal Cost to Company: R800k ...More

PRO - Risk & Governance

  • >500 000 Gauteng Permanent Procurement Management Projects / Category Management
PRO - Risk & GovernanceTotal Cost to Company: ...More

Supply Chain Site Manager

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
Supply Chain Site ManagerTotal Cost to Company R1mil ...More

Chief Financial Officer

  • >500 000 Gauteng Permanent Procurement Officer / Specialist
Chief Financial OfficerTotal Cost to Company R1.5mil – ...More

Process Engineer- WMS

  • <500 000 >500 000 Industrial Engineer Permanent Projects / Category Management Western Cape
Process Engineer- WMS(Total Cost to Company R350K – ...More

Forecast Analyst

  • <500 000 Analyst Permanent Procurement Management Western Cape
Forecast Analyst(Total Cost to Company R350K – R500K) Location: ...More

Group Category Manager: Indirects

  • >500 000 Permanent Procurement Management Projects / Category Management Western Cape
Group Category Manager: Indirects(Total Cost to Company R700K ...More

Group Category Specialist: Chemical

  • >500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Group Category Specialist: Chemical(Total Cost to Company R700K ...More

Sourcing Specialist - 3rd party

  • >500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Sourcing Specialist - 3rd partyTotal Cost to Company ...More

Global Procurement Lead (Processing)

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
 Global Procurement Lead (Processing)Location: JohannesburgTotal Cost to Company ...More

Global Supplier Performance Manager

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
Global Supplier Performance Manager Location: Johannesburg  Cost to ...More

Group Customer Service Lead

  • <500 000 >500 000 Analyst Gauteng Permanent Procurement Officer / Specialist
Group Customer Service Lead  Location: Johannesburg As the ...More

Business Intelligence Manager

  • <500 000 >500 000 Gauteng Permanent Procurement Management Supplier / Business Development
Business Intelligence Manager Location: JohannesburgLead the development, implementation, optimization ...More