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

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Procurement Consultant
Salary: R500 000 - R500 000 per annum.Location: ...More

Fuel Logistics Manager

  • <500 000 Logistics & Warehousing Operations, Planning & Inventory Permanent Western Cape
Salary: R600 000 - R720 000 per annumLocation: ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Projects / Category Management Supply Chain
R650 000 - R700 000 per annum.Location: Johannesburg.A ...More

SENIOR BUYER

  • <500 000 Buyer Gauteng Permanent Supply Chain
R500 000 - R550 000 per annum,Location: Midrand,A ...More

Supply Chain Analyst

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R600 000 - R700 000 CTC per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Supplier / Business Development Supply Chain
Salary: R600 000 - R700 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Permanent Projects / Category Management
Salary: R450 000 - R550 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R500 000 - R500 000 per annum,Location: ...More

Warehouse and Distribution Manager

  • <500 000 Logistics & Warehousing Permanent Procurement Management
Salary: R650 000.00 - R850 000.00 CTC pa,Location: ...More

National Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Salary: R900 000 - R1 000 000 per ...More

Procurement Specialist

  • <500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
Salary: R380 000 - R420 000 per annum,Location: ...More

Supply Chain Analyst Lead

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R1 000 000 - R1 100 000 ...More

CIPS Tutor and Coordinator

  • Gauteng Permanent Projects / Category Management Supply Chain
Commerce Edge South Africa,Division: Commerce Edge Academy,Location: Johannesburg, ...More

Warehouse Manager

  • <500 000 Gauteng Industrial Engineer Logistics & Warehousing Permanent
Salary: R480 000 - R600 000 per annum.Location: ...More

Senior Buyer

  • <500 000 Buyer Gauteng Permanent Procurement Consultant
Salary: R600 000 - R650 000 per annum.Location: ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Salary: R700 000 - R800 000 CTC per ...More

Warehouse Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
R400 000 - R480 000 CTC per annum.Location: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
R400 000 - R500 000 per annum.Location: Cape ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Consultant
R650 000 - R750 000 per annumLocation: Cape ...More

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R 800 000 - R 900 000 ...More