Konga, a Nigerian e-commerce company, has harped on the need for companies operating in third world countries to embrace modern procurement dynamics to survive intense competition in today’s corporate world.
This, according to a report by its Research and Strategic Business Development Unit, is critical to their survival in an unfriendly business environment.
Creativity is needed to cut the increasing costs and losses associated with the slow pace of the procurement process in Nigeria, it noted.
“It takes an average of two weeks for a Small and Medium Enterprise to buy a simple toner cartridge for a laser or inkjet printer.
“Likewise, it takes multinationals over four weeks from the time of request to get quotes from vendors through the process of selection, issuance of Local Purchase Order to the time of final supply by the vendor.
“This is even in cases where the SME or multinational is lucky to select a quality vendor.
“Even with these transparent and competing procurement processes, best prices and genuine products are not guaranteed. Therefore, why should you go through these processes and end up losing money?” the report read in part.
In this era of thinning profits, it advised companies to embrace digital procurement strategy.
“Online procurement is the way to survive, as competition in the third world gets more intense.
“Aligned to this is the cost of fund, which continues to go higher, and vendors have no choice but to incorporate these in the final cost to the consumer.
“Today, with an improved digital payment system in Nigeria, SMEs and big firms can open e-wallets through which they can take advantage of multiple stocked warehouses nationwide and take delivery of their products the same day, or on the next at the most,” it added.