A new Era in Uganda’s and East Africa's Supply Chain Industry

Long before suppliers have not been given the attention they deserve along the Supply chain. For instance buyers have focused supplier relations on tactical elements, such as price, delivery, and service, which often have led to operational complacency on both sides. At a time when procurement organizations are being transformed into strategic sourcing teams, the role of their suppliers must be transformed as well. Buyers should therefore realize that Buyer-Supplier relations go beyond the tactical elements. 

One of the greatest challenges faced by suppliers is “the Supplier Knowledge Gap” between a supplier and a buyer. This lack of comprehensive knowledge by supplier’s senior management of how the relationship with the buyer is evolving is largely attributed to fear and time. Senior executives are literally in the dark as the real standings of their firm with customer organizations. There is need for the parties involved especial the (Procuring organizations) to reduce the knowledge gaps which will go a long way in enhancing operational effectiveness of both parties involved.  

“EVERY ONE IN THE SUPPLY CHAIN IS PRONE. YOUR SURVIVAL WILL GREATLY DEPEND ON HOW YOU INTERACT WITH ALL THE PARTIES IN THE CHAIN.

We should start realizing that Buyers without suppliers (providers & contractors) can as well collapse. For instance a supplier of stationeries to a large organization who views paper as an item of strategic importance should embrace their suppliers as strategic stakeholders or else such operations can be curtailed even in the presence of multiple suppliers.” 

It’s therefore high time private, public and NGO buying entities realized the importance of all stakeholders in the supply chain. This will play a very important role as it will go beyond just providing a service to maintain and strengthening relationships along the supply chain to enhance long term strategies that benefit all the parties involved. This calls for reduction in the knowledge gap, strategic supplier councils, on-site supplier support and the participation in the strategic planning process of purchasing organizations. Not forgetting that the need for regular and informative interactions where issues to do with long-term needs, onsite performance expectations and sustainability issues to mention but a few can be addressed. 

 
Such conversations, correspondences and meetings could result into heated debates which will fuel innovation on both the buyer and supplier organizations. There are a number of issues that suppliers need clarification about but because they cannot all be reached at the same time they are bound to make such mistakes over and over again whenever they are involved in any sort of tendering and service provision. 

Therefore in my perspective realizing benefits, cost minimization and achievement of organization goals calls for the change in the game along the supply chain for all the parties involved to enhance efficiency, transparency and innovation. The new era has began where suppliers want buyers to look past pricing as a critical means for evaluating new business to making them strategic stakeholders in the overall performance of the buyer’s company.  

The writer of this article is a Business Development Consultant at Strategic Insights Consult and can be reached on sinsightsconsult@gmail.com or call +256782309452