Why outsource procurement?
Growth and expansion into Africa can be just as daunting as it is intriguing. Africa is the second most populated continent with around one billion people. It is open to companies who want to establish themselves and lay foundations to take advantage of the massive economic growth that is currently underway within many African countries.
Companies expanding into Africa often outsource their supply chain administration, relying on the country specific logistics knowledge and capacity flexibility that a third party service provider can provide. Entities wanting to move into Africa, or those already in Africa, need to draw upon proven expertise and advice on complex matters such as logistical financing, country or regional-specific knowledge, local networks, setting up a business in a specific country and what regulations and legislations to bear in mind for each sector.
Companies today are increasingly seeing the value of outsourcing the procurement function to specialist providers in order to improve business performance and achieve sustainable long-term savings. The benefit of leveraging procurement outsourcing is measurable: a reduction in cost and greater supplier efficiencies.