Strategic sourcing can alleviate poverty, promote small enterprises and grow economies

| 0 Comments
Africa.jpgStrategic sourcing can create jobs for small enterprises and ultimately achieve economic development, said SmartProcurement Editorial Board member Dr Douglas Boateng.

Strategic sourcing has helped organizations achieve quantifiable savings, often between 4% and 12% on procurement spend, and improve productivity and corporate social responsibility initiatives.

“As a concept it continues to assist governments to industrialise, develop and create long-term jobs in certain deprived localities and rural areas,” said Dr Boateng in a paper delivered at the 2012 CIPS Africa Distinguished Lecture series in Accra.

His paper highlighted the strategic importance of the procurement aspects of supply chain management towards African economic development.

Douglas Boateng.jpgA well-developed strategic sourcing strategy can strengthen economic capacity; increase demand for local suppliers, improve the investment environment; and ensure an increase in productivity, quality and competitiveness of local staff and businesses, noted Dr. Boateng.

Through developing SMEs and creating jobs in the vicinity, strategic sourcing is a route to increasing affordability levels; broadening the local tax base; and improving council services.

Furthermore, it links developed and underdeveloped areas and socio-economically empowers disadvantaged and marginalized communities, facilitating redistribution processes and improving quality of life locally.

“By strengthening the support of local businesses, public sector spending within locally-based companies increases and promotes business start-ups and encourages business to grow,” he said.

He posited that African Governments appoint an independent senior supply chain management and procurement expert in their respective Presidencies to further enlighten the leadership and various Ministers on the long-term economic developmental aspects of strategic sourcing and supply chain management as a whole.

Furthermore, “a new era has dawned for the procurement and supply chain management profession. I foresee within the next 24 months all practitioners being forced to sign a professional code of practice and conduct with the appropriate professional body,” noted Dr. Boateng

Financing projects

Strategic sourcing is not just about buying goods and services. Even the sourcing of finance for various projects must be strategically looked into in the interest of socio-economic development.

“There are major banks on stock exchanges on the continent,” noted Dr. Boateng. “Why should African banks not get a greater share of interest earned from these loans, which could be ploughed back into development financing on the continent?”

In terms of Foreign Direct Investment (FDI), he concluded that the majority of profits earned on relatively small capital amounts raised in Canada and the US for exploration initiatives in minerals and oil and capital intensive projects are owned by American, European and Chinese investors.

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

Operations Manager

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Our client within the FMCG industry with a ...More

Warehouse and Distribution Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
An exciting opportunity awaits for a Warehouse and ...More

Demand Planner

  • <500 000 Permanent
Get an opportunity to be part of one ...More

Procurement Manager

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
An opportunity for a seasoned Procurement Manager, who ...More

Industrial Engineer

  • >500 000 Gauteng Industrial Engineer Permanent Procurement Consultant
An exciting opportunity that offers extensive exposure on ...More

Deputy Director: Procurement

  • >500 000 Contract Procurement Management Procurement Officer / Specialist Western Cape
Department of Economic Development and Tourism:Procurement Specialist, Ref ...More

DEMAND PLANNING MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Projects / Category Management
(Total Cost to Company R750k – R900K) excluding ...More

GLOBAL SUPPLIER PERFORMANCE MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Salary: R 1.3M –R1.5M, dependent on level of ...More

GLOBAL CATEGORY MANAGER

  • >500 000 Contract Gauteng Procurement Consultant Projects / Category Management
Total Cost to Company R1mil – R1.2mil excluding ...More

Project Manager

  • >500 000 Contract Procurement Management Projects / Category Management Western Cape
 Description:A well-known retail organization is looking for an ...More

PROCUREMENT ANALYST

  • >500 000 Analyst Gauteng Permanent Procurement Management
Description:A leading infrastructure development group with strong presence ...More

Commodity Manager: Fuels and Lubes

  • Commodities Gauteng Permanent Projects / Category Management
 Ensuring continuity of supply in line with business ...More

Senior Facilities Manager

  • >500 000 Commodities Gauteng Operations, Planning & Inventory Permanent
(Total Cost to Company R800K – R900K) Johannesburg Our ...More

ENGINEERING STANDARDS MANAGER

  • <500 000 >500 000 Gauteng Industrial Engineer Permanent Procurement Management
(Total Cost to Company R350K – R550K) JOHANNESBURGYou ...More

Supply Chain Analyst

  • <500 000 >500 000 Permanent Procurement Officer / Specialist Supply Chain Western Cape
(Total Cost to Company R350K – R550K)  SOUTHERN ...More

Security Manager

  • <500 000 >500 000 Gauteng Permanent Projects / Category Management Strategic Sourcing
(Total Cost to Company R350K – R550K) JOHANNESBURG This ...More

Demand Planner

  • <500 000 >500 000 Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R450k – R550k, dependent ...More

Procurement Specialist-Randburg

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
(Total Cost to Company R700k – R800k including ...More

Solutions Architect

  • >500 000 Gauteng Industrial Engineer Permanent Projects / Category Management
(Total Cost to Company R1.3Mil – R1.1Mil including ...More

MANUFACTURING MANAGER - OLIFANTSFONTEIN

  • >500 000 Gauteng Permanent Projects / Category Management
(Total Cost to Company R850k – R950K including ...More