Procurement myopia can be a death sentence for an organisation.
This has never been more true than in today’s fragile, post-pandemic and disruption fraught business environment, where economies are still reeling, and business resilience and innovation are more important than ever.
“Glocalisation” is a remedy for procurement myopia, according to Dr Jones Mathew, a professor at the Great Lakes Institute of Management in Gurgaon, India. He was one of the 100 African and international experts who shared their experience and insights with the more than 500 delegates who attended the recent Smart Procurement World Indaba. Now in its 16th year, this event is South Africa’s largest, longest-standing conference and expo for procurement and inbound supply chain professionals. This year’s theme was “Glocalised Procurement – Think Global, Act Local”.
Mathew explained that “glocal” procurement entails protecting localisation while at the same time integrating into global businesses. While an organisation suffering from procurement myopia would focus only on cost cutting rather than business value creation in its procurement strategy, and may be dangerously dependent on select suppliers, a glocalised organisation would successfully combine global channels with local strengths, he said.
“Risk assessment is an integral part of a glocalisation strategy, along with the identification and activation of alternate local resources,” he told Smart Procurement World Indaba attendees.
“Given the current world supply chain scenario, there would be great benefits in shoring up one’s internal or domestic supply chain capabilities with local opportunities. At stake may be more than just millions of dollars in sales losses or gains. If a glocalisation thrust is not a part of procurement strategy, it could even undermine the very survival of the firm,” Mathew warned.
The 2022 Smart Procurement World Indaba offered the inbound supply chain and procurement profession a critical opportunity to meet in person to learn and network for the first time since the start of the pandemic. Organiser Smart Procurement World has reported that the event was a huge success, with delegates commending the excellent programme and informative topics.
The 11th annual Absa Enterprise and Supplier Development Event ran alongside the 2022 Smart Procurement World Indaba. South Africa’s largest gathering of buyers and suppliers, this event enabled buyers to engage with local suppliers, offering critical market linkage opportunities to small businesses.
In his opening address at the Indaba, Vusi Fele, Absa group chief procurement officer, stressed the importance of innovation and collaboration, which he said are crucial to successful and sustainable entrepreneurship development.
“Businesses that do not constantly innovate to respond to the changing needs of their customers are destined to lose customers and run out of business, entrepreneurship and innovation. The importance of sustainable entrepreneurship development, particularly in the current socio-economic environment that we found ourselves in, cannot be underestimated. Opening up opportunities for small and medium enterprises (SMEs) to access corporate supply and delivery chains is one of the most efficient and consistent ways in which established corporates can contribute to sustainable entrepreneurship development,” he said.
The annual APMP SA Conference also ran alongside the 2022 Smart Procurement World Indaba and focused on upskilling attendees on tender proposals and the bidding process.