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



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

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:
* Country:
* Public / Private:


Career opportunites

Demand Planning Manager

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

Global Category Manager: CONTRACTS

  • <500 000 Buyer Commodities Contract Gauteng
Total Cost to Company R1mil - R1.2mil excluding

Project Manager :12-18 MONTH CONTRACT

  • <500 000 Contract Procurement Officer / Specialist Projects / Category Management
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

  • <500 000 Commodities Gauteng Permanent Strategic Sourcing
Description:Ensuring continuity of supply in line with business ...More

Senior Facilities Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R800K - R900K) Description: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
(Total Cost to Company R350K - R550K) SOUTHERN ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
(Total Cost to Company R450k - R550k, dependent ...More

Procurement Specialis

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

Solutions Architect

  • <500 000 Analyst Gauteng Operations, Planning & Inventory Permanent
(Total Cost to Company R1.3Mil - R1.1Mil including ...More

Engineering Manager

  • Gauteng Industrial Engineer Permanent Procurement Management
Total Cost to Company R850k - R950K including ...More

Country Head of Procurement

  • Permanent Procurement Management Procurement Officer / Specialist CBS Procurement,Hub Head of Procurement To lead, ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management!Gauteng/Planning/Demand%20Planner/TP2005490/MSe Category: PlanningPosition Title: Demand PlannerSalary: R600 000 ...More

Head of Procurement

  • <500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist!Gauteng/Procurement/Head%20of%20Procurement/TP2005488/ZBuCategory: ProcurementPosition Title: Head of ProcurementSalary: R1.3 million ...More

Warehouse and Distribution Manager

  • <500 000 Gauteng Logistics & Warehousing Permanent Supply Chain!Gauteng/Logistics/Warehouse%20Distribution%20Manager/TP2005455/TMa Category: Supply ChainPosition Title: Warehouse and Distribution ...More

Supply Chain Manager

  • <500 000 Mpumalanga Permanent Procurement Officer / Specialist Supply Chain!Mpumalanga/Supply%20Chain/Supply%20Chain%20Manager/TP2005448/LMa Category: Supply ChainPosition Title: Supply Chain Manager ...More

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer Operations, Planning & Inventory Permanent!Gauteng/Consulting/Continuous%20Improvement%20Manager/TP2005489/SNh Category: ConsultingPosition Title: Industrial EngineerSalary: R900 000 ...More

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