A PROCUREMENT expert has noted with concern the extent to which bad procurement policies, strategies and systems are causing huge losses each year for Zimbabwe’s private sector and government.
Poor procurement strategies have a huge impact on business and the economy as this affects competitiveness. Chartered Institute of Procurement and Supply Zimbabwe branch chairman, Michael Musanzikwa, told delegates at the Institute of Architects of Zimbabwe (IAZ) annual congress held last week in the capital that millions of dollars are lost or wasted or thrown down the drain as the private sector and government undeservedly “pays too much money for the goods and services bought”. Adding that the adoption of the best cost and quality management practices could produce greater benefits for Zimbabwe, Musanzikwa — who is also a Chinhoyi University lecturer and the State Procurement Board member — said companies should have procurement policies which clearly determine how to commit funds.
Strategic sourcing can lead to sustainable competitive advantage for organisations. “Procurement policies must be very clear in determining how companies are going to commit funds. It tells you how you are going to buy. But, many companies in this country continue putting money into the drain because they have adopted wrong procurement policies and strategies. “Many companies don’t give it (procurement) a strategic position in the organisation. For it to be able to save sourcing costs there should be a robust support for procurement function by top management.
This is where most organisations are getting lost,” said Musanzikwa. Some elements of current government and private sector procurement policies and practices are inefficient, adding unnecessary costs of projects, goods and services. Arthitect, Arthur Matondo, who is the president of IAZ, agreed with Musanzikwa saying bad procurement policies and strategies “cost dearly” especially in the construction industry. “One of the business cost drivers in construction industry is the stubbornness of clients and there is also lack of ability of the (architects) professionals to be brutally honest with their clients. Bad (procurement) policies and strategies cost dearly,” Matondo said.