IT is a more than common issue that whenever organisations, particularly in the public sector, fail to meet their targets or face internal scrutiny on performance issues, the blame lies with the procurement department.
In most cases, us the buyers are so used to the blame that we take it on nonetheless and keep moving to avoid the back and forth of squabbles that erupts in the boardrooms over these issues.
However, I have since challenged that most issues that cause bottlenecks in supply chains have nothing to do with procurement itself, but everything to do with inefficiencies within the organisation that management may never want to confront as they reveal much deeper cracks and weaknesses in the system, that require major attention.
The foremost factor that causes delays in the procurement system is the companywide idea that procurement is a clerical function.
At best, most organisations are manned by a very small team inundated with requests, where the company fails to realise the value that procurement can actually bring to the firm.
As a result of this, the procurement function is weakened.
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Stakeholders fail to understand the functions and purpose of procurement procedures, the Act and the department.
As personally experienced, a buyer may actually explain the process to a senior manager who, because of a lack of understanding, views procurement processes as long, arduous and unnecessary, bringing about the blame on delays to the procurement department.
The Public Procurement and Disposal of Public Assets Act has since transformed and mandated public entities to ensure the function reports directly to the accounting officer.
Furthermore, sensitisation on public procurement processes is continuously conducted for senior managers to understand the purpose and procedures involved.
The Procurement Regulatory Authority of Zimbabwe even requires entities to plan their procurement yearly in order to show the importance of planning activities accordingly.
Tied together with a lack of understanding of procurement procedures by internal stakeholders is the fight between them and procurement in failing to reach consensus on specification development.
Initiating a procurement process with a wrong set of specifications is a recipe for disaster.
While this may seem improbable, it’s important to note that specifications need to be clear, concise and aiming to achieve value for money.
Over-specification robs the procuring entity of the gains of SMART specifications, as gold plating usually results in purchasing the most expensive or least accessible service or product, when fitness for purpose should have been the main objective.
This is usually the case with marketing and technical procurement, where the departments claim to have superior knowledge of the product, while also not realising the benefit of neutralised specifications.
The result is a higher spend and longer lead times.
Another factor that influences delays in any supply chain is a mismatch between finance and procurement over payments.
Delayed and non-payment of suppliers has varying results.
These can be a lack of trust by the supplier pool, fewer responses to requests by suppliers higher prices offered by suppliers, and ransoming by suppliers with pending deliveries to make and also pending payments to receive.
The Act has since explicitly argued against initiating procurement processes without a budget for them, another reason there is a requirement to submit yearly plans is to avoid such instances.
Entities sometimes purchase products without the money to pay suppliers a highly unethical but prevalent practice.
This, unfortunately, creates room for corrupt practices, where suppliers are coaxed into underhanded dealings to quicken the payment process, defrauding them of hard-earned money.
Understandably, some issues that cause delays in the procurement processes are a direct result of the department itself, one of which is wrong choice of procurement strategy.
Oftentimes, departments are inundated with requests and are continuously busy, repeating the same processes over and over again, wasting valuable time.
The Act has provided for various procurement methods that predominantly are the request for quotation method and the domestic or international tender method.
However, there are other options provided for in the Act, such as application of direct procurement methods, single source methods, framework agreements, or requests for exemptions and other concessions from the Procurement Regulatory Authority of Zimbabwe.
A failure to apply the appropriate procurement method and strategy results in a loss of time and resources, with the unfortunate consequence of demanding that the procurement process be reinitiated correctly the second time around.
All of the above are avoidable factors that contribute to delays and bottlenecks in supply chains not only in public procurement, but all other sectors.
A deeper understanding of processes and compliance, collaborative effort and improvements in other important organisation areas undoubtedly result in a more efficient supply chain.