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

Online since 8.06.2016 • 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. The emergent of global scarcity issues, climate change, sustainability issues and strict legislative issues, is a call for new innovative approaches in the practice of supply chain. Current supply chain practice is the most critical business operation and challenges traditional approach to this practice. There is a need of implementing well-crafted strategies targeting at managing both every day and exceptional risks along the supply chain based on continuous risk assessment. The mail objective for this would be to 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 organisations.

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, but there are a number of issues that need to be addressed for the goal to be achieved. They also 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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