Procurement becoming more complex
Apr 20, 2011
THE role of procurement within global companies has changed dramatically over the years from simply buying of goods and services to overseeing a cohesive set of management functions.
By Brenda Asiimwe
THE role of procurement within global companies has changed dramatically over the years from simply buying of goods and services to overseeing a cohesive set of management functions.
This means practitioners have to be at their feet as they think and try to discover ways in which they can make the procurement of today better than yesterday’s.
Benon Basheka, the chairperson of The Institute of Procurement Professionals of Uganda, says procurement in the future is likely to be more complex and challenging because of the rapid developments which are taking place throughout the world as a result of influential forces of globalisation and the use of the internet.
He argues that in the running of the State, public procurement is crucial, considering the amount of money the Government spends on its procurement requirements.
Basheka cites the National Development Plan that recognises the rampant problems in the procurement sector such as corruption.
Unless this is addressed, the objectives of the rather good plan will only remain on paper, he says. He argues that stakeholders within and outside organisations only look at procurement as a wealth creating function.
Basheka says it’s difficult to talk about the future success of procurement unless radical steps are taken from different fronts.
“Politically, the success of procurement in government will only succeed if there is a clear resolve that there is a problem in this area. It requires commitment from the highest at national and organisational levels to respectfully follow up the procurement rules and regulations without violation and impunity in some cases,†Basheka points out.
He explains that in procurement, knowledge is power. He adds that one needs to know their suppliers’ risks so that they can mitigate them. He emphasises that it’s always good to manage relationships with suppliers to ensure their compliance to agreements and contracts.
On ethics, overestimate the need to show integrity and demonstrate ethical practices all the time, Basheka advises.
He, however, adds that one needs to understand the market from which they are sourcing. “You should know your suppliers’ suppliers.â€
THE role of procurement within global companies has changed dramatically over the years from simply buying of goods and services to overseeing a cohesive set of management functions.
This means practitioners have to be at their feet as they think and try to discover ways in which they can make the procurement of today better than yesterday’s.
Benon Basheka, the chairperson of The Institute of Procurement Professionals of Uganda, says procurement in the future is likely to be more complex and challenging because of the rapid developments which are taking place throughout the world as a result of influential forces of globalisation and the use of the internet.
He argues that in the running of the State, public procurement is crucial, considering the amount of money the Government spends on its procurement requirements.
Basheka cites the National Development Plan that recognises the rampant problems in the procurement sector such as corruption.
Unless this is addressed, the objectives of the rather good plan will only remain on paper, he says. He argues that stakeholders within and outside organisations only look at procurement as a wealth creating function.
Basheka says it’s difficult to talk about the future success of procurement unless radical steps are taken from different fronts.
“Politically, the success of procurement in government will only succeed if there is a clear resolve that there is a problem in this area. It requires commitment from the highest at national and organisational levels to respectfully follow up the procurement rules and regulations without violation and impunity in some cases,†Basheka points out.
He explains that in procurement, knowledge is power. He adds that one needs to know their suppliers’ risks so that they can mitigate them. He emphasises that it’s always good to manage relationships with suppliers to ensure their compliance to agreements and contracts.
On ethics, overestimate the need to show integrity and demonstrate ethical practices all the time, Basheka advises.
He, however, adds that one needs to understand the market from which they are sourcing. “You should know your suppliers’ suppliers.â€