Overview:
Discover how businesses are abandoning traditional procurement methods in favour of more efficient and effective approaches, and what this means for the future of procurement.
KAMPALA – A quiet revolution is taking place in the world of procurement, with companies increasingly recognizing the strategic value of this once-overlooked function. At the forefront of this shift is Kenneth Kawuki, Head of Procurement and Administration at PostBank Uganda.
Mr. Kawuki has overseen a transformation of the procurement function at the bank, aligning it with the company’s purpose of fostering prosperity for Ugandans. The bank’s procurement team now works closely with suppliers to deliver customized solutions that meet specific business needs.
For instance, when the bank needed to upgrade its core banking system, the procurement team didn’t just issue a tender for the lowest bidder. Instead, they worked with the bank’s IT team to develop a detailed specification of the required system, and then engaged with potential suppliers to determine which one could deliver the best solution.
“This approach not only ensured that we got the right system for our needs, but also helped us build a stronger relationship with our supplier,” Mr. Kawuki explained.
The bank’s experience is not unique. Across the globe, companies are waking up to the strategic importance of procurement. By adopting a more collaborative and value-based approach, businesses can unlock significant value and drive growth.
According to a recent study, companies that adopt a strategic approach to procurement can achieve cost savings of up to 25%, as well as improvements in quality, delivery, and innovation.
However, making this shift requires a fundamental change in mindset. Procurement teams need to move away from a focus on transactional processes and towards a more strategic approach that prioritizes collaboration, innovation, and value creation.
“It’s not just about buying goods and services,” Mr. Kawuki said. “It’s about driving business outcomes and creating value for our customers and stakeholders.”
As the business landscape continues to evolve, it’s clear that procurement will play an increasingly important role. For companies looking to stay ahead of the curve, adopting a strategic approach to procurement is no longer a nice-to-have, but a must-have.