Buyers’ social standing
Procurement professionals are often accused of moaning their fellow colleagues don’t understand the “value” they provide to the business.
This report, published this week by the New Economics Foundation, has analysed six positions to see how much “value” each provides to society.
Tax accountants come off the worst, said to destroy £47 of “social value” for every £1 of value they generate. This is because some of them help people and companies avoid paying tax. Recycling workers came top in terms of creating value for society, creating £12 for every £1 spent on their wages.
The authors of the report say the point of their study is to prove there should be a relationship between what people are paid and the value of their work to society. Where do you imagine a procurement professional might come in such a study?
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The study reveals a very important role that procurement professionals must strive to achieve: this is helping the company to be profitable by reducing costs. Company purchases cover 60 to 80 per cent of business cost; surely this grossly under-exploited area can help other professionals recognise the importance of procurement in the profitability of an organisation.
Kangulu Kalaluka
Lusaka, Zambia
A successful buyer helps to lower inflationary pressure in the market as a whole, whatever products or commodities they purchase. Their work has knock-on effects along the supply chain which result in, at worst, pegging back increases, and at best, helping to reduce prices in related markets. This then has a cascade effect across other less-related markets.
Supply Chain Professionals the worldover play a very serous role in the social and economic standing,in various ways.
Firstly,most economic Acts of Parliaments are implemented by Supply Chain functions.The case with Zambai is that,we have Zambia Revenue Authority.This is an arm of the Government.Ther requirement is that all those involved in trading and contracts must be tax compliant.It is a sole responsibility of Supply Chain Function to to award every single business to such obliging business houses.This responsibility in turn helps in broadening the tax base.
Further,construction comapnies are required to register with construction regulatory bodies,and again supply chain functionalies do ensure that they award business to those organisations that subsceribe to the construction regulatory bodies.
Second aspect is that of promototing direct social and economic growth.This is done by way of awrding contracts to deserving business partners,who in turn employ other people,thereby reducing unemployment levels.It is a known fact that every procurement professional is a vendor Manager.To this effect,many suppliers and contractors have graduated from one level to another in business manicipation due to the coaching that is carried by the sulpply chain functionalities.
The few above being said,allow me to strongly state that people from other professions are coming to do supply chain fuctionalities because they heve realised how influencial the functtion is to the social and ecnomic response across the globe.
Daniel Kabamba
Mopani Copper Mines Plc
Zambia