Page 36 - Logistics News - Issue 01 - 2024.indd

P R O CUR E ME N T

The ongoing evolution

of procurement

By Debbie Tagg, Chief Operating Officer at Smart Procurement

Procurement has evolved from a dog-eat-dog world to empowering underdogs,
collaborating with suppliers and caring for the environment and communities.

he ongoing evolution of procurement has seen the rising and with the right support, they can make an even greater
profession develop from a back-office function to a driver impact on the country’s economy and employment rate.
T of business strategy. It has also shifted from a competitive
dog-eat-dog arena – where the lowest price was the top prize – to Procurement leaders are increasingly recognising
one in which underdogs are developed, suppliers are partners and the competitive advantages that small suppliers can
care for the environment and communities is non-negotiable. bring to big businesses – with their drive, innovation and
entrepreneurial flair. Localisation and supplier diversification
This is an exciting and inspiring time to be in procurement strategies also form part of most organisations’ plans to
and we can expect even more in 2024 as procurement continues manage risk and ensure resilience in today’s constantly
to evolve, as we keep challenging procurement traditions and volatile environment.
as more stakeholders recognise procurement’s power to do
so much more than just get goods and services at the best Today’s astute procurement professionals collaborate
price. Procurement has the power not just to add value for with and even upskill their suppliers to ensure that
organisations, customers and suppliers, but to grow economies, everyone wins. They understand the critical importance
protect the environment, uplift communities and drive real change of collaboration and transparent communication with
in the world. suppliers. Forging strong, long-term partnerships,
understanding suppliers’ challenges and sharing
From a historic dog-eat-dog approach to get the lowest price information is in everyone’s best interests. They consider
at any cost, procurement today strives to uplift and empower diversity, equity, inclusion and sustainability in procurement
underdogs like small businesses. Small businesses are the practices and policies because, today, procurement can be
backbone of South Africa’s economy, employing around 60 a force for good. Procurement functions are now geared to
percent of the workforce and making a substantial contribution lead their organisations. They are at the heart of insightful
to the GDP. The number of small businesses in South Africa is data, demand influencing and sustainability.

34 I S S UE 01 – 2024 www .l o g ist i csn e w s .c o .z a