Buyers urged to 'do things differently'

27 May 2009

28 May 2009 | Jake Kanter in Johannesburg

All buyers can target savings of 40 per cent for their organisations by applying the right "tools and methods", according to the president of CIPS.

Addressing delegates at the annual IPSA/CIPS Pan Africa conference this week, Bola Afolabi (pictured) said purchasers must share knowledge and try new things to add value to their business during difficult economic times.

Afolabi, the general manager SAP at the Nigerian National Petroleum company, called on buyers to threaten suppliers with having to rebid for contracts and investigate using e-auctions in an effort to reduce costs.

He added that contracting with new vendors could yield savings of as much as 20 per cent. But Afolabi warned procurement was not just about reducing costs. He urged delegates at the conference to help boost the reputation of their businesses and invest in smaller suppliers by helping fund training and new equipment.

"Everything we do is not for financial profit, we have a corporate social responsibility to develop local companies - as a great supply chain professional you are not assessed only on the amount of synergies you make," he said.

"It's your time now to make a difference in the organisation you work for. Think very carefully of what is around you and try hard to do things in a different way. If we do that, we will get recognition."

SMmay2009

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