New technology could improve supplies sector

THE supply chain management is growing at a fast and steady pace, especially with the coming up of new time-saving electronic procurement (e-procurement) technologies.

By Stella Nassuna

THE supply chain management is growing at a fast and steady pace, especially with the coming up of new time-saving electronic procurement (e-procurement) technologies.

These technologies allow organisations to move away from the traditional systems to the more strategic and flexible ones, enabling companies to control the supply chain from a centralised setting.

Benon Kwizera, the Kisoro district procurement officer, says new technologies reduce professional services and labour expenditure and save time.

He notes that the modern supply chain management technologies ensure transparency, especially in costing, since firms can access information from a range of providers to enable them make an informed decision, resulting in faster and efficient processes.

However, no matter how good these supply chain management technologies are to any business, most countries in Africa, including the Uganda, do not have enabling laws to use them.

E-procurement is part of the amended the Public Procurement and Disposal of Assets Authority (PPDA) Act of 2010, which is currently before Parliament.

When approved by Parliament, it is hoped the new law will contribute greatly to the development of the procurement sector in Uganda.

The lack of law notwithstanding, many Ugandan suppliers have remained hesitant, with a number of them developing technophobia to new technologies. For example, many companies are yet to register with the PPDA’s service providers’ register, which is a step towards e-procurement, besides improving visibility of the local firms.

Only 1,215 providers had registered with the online register by August last year.

Kwizera notes that some suppliers were yet to grasp the benefits of the modern supply chain management system, opting to play the waiting game.

“Many people still think that it is expensive and complex to operate, yet it has a number of benefits.”

Kwizera notes that PPDA should make e-procurement a key strategy to move the sector to the future.

“Ugandans, therefore, should be keen to come on board to help them remain competitive. PPDA should ensure that the new technologies are popularised,” he says.

They should also sensitise stakeholders about the benefits of the new technologies over the orthodox system, he adds.