When procurement gets sick: The hidden disease draining organisations

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OPINION

By Dr Jeanpo Olowo

In every organisation, procurement is the lifeblood that keeps operations flowing. It is normally 80% of the total financial budget.

It determines whether projects succeed, supplies arrive on time, and resources are used efficiently. Yet beneath the surface of many institutions—public and private alike—lurks an ailment that quietly drains their strength: a sick procurement department.

When procurement “gets sick,” the symptoms rarely appear overnight. They creep in slowly, hidden behind piles of paperwork, late deliveries, inflated prices, and unexplained supplier preferences. Often, the warning signs are ignored until the damage becomes too visible to hide—when budgets balloon, donor confidence fades, and reputations crumble.

One of the earliest signs of sickness is misalignment. A healthy procurement unit works hand in hand with management to deliver on the organisation’s mission. Every purchase serves a purpose. But when procurement becomes reactive—responding only to emergencies rather than planning ahead—the system shifts into survival mode. Constant “firefighting” replaces strategy, and purchasing becomes a series of rushed transactions instead of deliberate decisions. Another red flag is process paralysis.

Outdated policies, missing guidelines, or unclear approval limits create confusion and room for manipulation. You’ll hear familiar excuses: “We’ve always done it this way,” or “There wasn’t time for competitive bidding.” Such practices open the door to favouritism, waste, and corruption. Meanwhile, documentation disappears, and the same vendors mysteriously keep winning contracts. The financial consequences are severe.

Leakages begin to show through over-invoicing, duplicate payments, or unnecessary purchases. “Emergency” procurements become a routine excuse to bypass procedure. Projects that were once cost-effective now overrun budgets with little to show for it. In truth, a sick procurement department doesn’t just waste money—it erodes trust and efficiency across the entire organisation.

Ethical decay is another symptom. When procurement officers blur the line between professional duty and personal interest, integrity collapses.

Kickbacks, “thank you gifts,” and friendly favours start to influence who gets what contract. Over time, corruption becomes normalised—a quiet cancer that eats away at the organisation’s moral fabric.

The effects ripple outward. Genuine suppliers lose faith in the fairness of tenders. Honest businesses are pushed aside by those with “connections.” Internal departments or stakeholders grow frustrated by delays and poor-quality goods.

Eventually, auditors uncover the truth: missing files, unclear evaluations, and blatant noncompliance with policy. But by then, the damage is often deep and expensive to repair. By contrast, a healthy procurement department is a strategic ally. It operates transparently, embraces technology, and focuses on value for money—not just price.

It nurtures supplier relationships, sets measurable performance goals, and enforces accountability at every step. Most importantly, it serves as a steward of integrity, ensuring that every coin spent delivers genuine benefit.

Healing a sick procurement department requires leadership courage. It means facing uncomfortable truths, updating policies, digitising systems, and rotating staff in sensitive roles. It also means investing in people—through training, ethical reinforcement, and recognition of professional excellence.

Procurement is not merely about buying goods and services. It is about building trust, protecting resources, and enabling progress. Whether in a government agency, nonprofit organisation, or private company, the procurement function stands as the conscience of financial stewardship.

So, the next time deliveries delay, budgets inflate, or suppliers seem suspiciously familiar, don’t dismiss it as ordinary inefficiency. You may be witnessing the early stages of an institutional illness—one that, if ignored, can cripple even the most successful organisation. Because when procurement gets sick, the whole body suffers.

The writer is adviser on finance and business operation

jeanpo.olowo@gmail.com