In recent findings, Standard Bank notes that companies are spending more of their revenue on products and services than they were thirty years ago. Looking back over the years, it’s evident that the needs of both corporations and consumers have shifted with the likes of globalization and a complex business market at the fore. It’s for this reason that efficient procurement standards are more valuable to a company’s success than ever before. With a well-managed procurement process, it can contribute to an efficient and cost-effective business operation that ultimately results in a competitive edge within the market.
THE OMX BLOG
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OMX is the world's most powerful procurement database and platform. We connect buyers and sellers in global supply chains and ensure that you have access to the best and most relevant opportunities.
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Corporate supply chains are growing in complexity with the increasing need for goods and services that uphold customer values as well as the ever-advancing technological progressions. With some businesses spending over 70% of their total spend in the supply chain, it is clear this is where the real impact can be made. Sourcing materials, managing suppliers, and navigating the way through emerging economies are common practices in the global business market. With this in mind, supply chain issues are bound to arise especially in the case of upholding important ESG (environmental, social, and governance) criteria, now of critical importance to consumers and investors.
When we talk about procurement today, it should be viewed as much more than a simple financial transaction. In fact, when considered strategically and applied correctly, social procurement can help local communities achieve their government’s economic, environmental and social objectives while underpinning a productive supply chain. With the right implementation, social procurement can easily become a critical tool for achieving a stronger triple bottom line for corporations, helping them meet investor and customer objectives and reduce their risk over the long run.
In today’s global market, political and economic instability can catalyze market turbulence all too often. On top of this, changing trade laws and disruptive policy developments are beginning to perpetuate the business world. As a result of these unstable times, businesses are encouraged to enforce well-defined procurement processes in order to better manage their supply chain and any associated risks.
Partnering Up with SMBs and Building Your Business' Success
In the case of a strategic business partnership, bigger isn’t always better. In fact, opting to support small-medium-businesses (SMBs) could lead to the success of both your company and your new partnership. The reasoning behind this has been succinctly described by Business Tech Africa as when an entity grows beyond a particular size, it runs the risk of becoming slower in adapting to change.