Ever-changing legislative environment impacts procurement and supply chain practice in South Africa

Online since 30.05.2016 • Filed under Industry news
Ever-changing legislative environment impacts procurement and supply chain practice in South Africa

At the core of every business is procurement and supply chain practice however in the present decade, companies are faced with extreme supply chain challenges. With emergent of global scarcity issues, climate change, sustainability issues climate and strict legislative issues, these call for new innovative approaches in the practice of supply chain. Current supply chain practice is the most critical business operation and calls for well-crafted strategies targeting at managing both every day and exceptional risks along the supply chain based on continuous risk assessment with the objective of reducing vulnerability and ensuring continuity.

The preponderance of natural disasters and huge economic swings causing extreme challenges across the supply chain, carbon footprint   reduction   measures brings smart commodities to be game changers in the procurement landscape. In this complex practice supply chain needs to be multifaceted and holistic approach and every successful strategy needs to take into account of environmental, legal, political economic and cultural issues.

Modern day practice range from integrated logistics management, cybersecurity, finance and risk management disciplines, the ultimate goal  being  to ensure supply chain  continuity in the event of a scenario which otherwise would have interrupted normal business and thereby profitability. It is worth noting however that there is   no    clear-cut solution to manage present day risks.  

Following the challenges above, the executive discussion forum at the 3rd Annual Africa Enterprise Development and Entrepreneurship Investment Agenda held on the 20-21 April 2016 at the CedarWoods of Sandton in Johannesburg echoed the same sentiments that South Africa is currently facing challenges within the procurement and supply chain space. More than just climate change and other risks the most pressing one is the ever changing legislative environment which is costly to organizations.

It is clear that the legislative environment targets at ensuring that procurement practice work towards economic growth and transformation however the ever changing legal frameworks makes it difficult for it to achieve its goals. Nonetheless the executives commended that the path is laid, however there are a number of issues that needs to be addressed for the goal to be achieved. The executives noted that there was need to come up with collaborative ways to establish a more inclusive strategic method of implementing the programme.

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