Latest news with #PaulVos
Zawya
6 days ago
- Business
- Zawya
Crisis mode: South Africa's new strategies for supply-chain disruptions
Crisis is no longer the exception — it's the default setting of global trade. From pandemic shocks to port gridlocks, geopolitical ruptures to tariff reversals, the world's supply chains are being stress-tested like never before. For South Africa, the latest upheaval — a US court ruling reigniting tariff uncertainties — is more than a blip on the radar. It's a flashing red warning that the country must stop reacting and start re-engineering how it sources, partners, and prepares. What's at stake isn't just exports. It's economic resilience — and survival. The decision to overturn former President Donald Trump's 'reciprocal' tariffs has triggered confusion among global importers, sending freight rates soaring and igniting fears of renewed congestion across global shipping lanes. According to PwC, over R47bn ($2.5bn) in South African exports to the United States, primarily steel and aluminium, are at risk from the possible reinstatement of Section 232 tariffs. If enforced, these tariffs could shrink South Africa's exports to the US by up to 35% in key sectors, with knock-on effects including supply-chain contraction, job losses, and increased operational costs due to rerouting and compliance burdens. Supply chain strain 'Geopolitical risk is no longer theoretical. It is immediate, material, and embedded in how our supply chains are designed,' says Paul Vos, Regional Managing Director: Chartered Institute of Procurement & Supply (CIPS) Southern Africa. 'South African businesses must ask themselves not just how to respond, but how to build resilience into every layer of their procurement strategy proactively.' The warning signs are already visible. Global freight rates have surged in recent weeks: the Shanghai Containerised Freight Index spiked by 487 points, and Drewry's World Container Index climbed by over 10% to $2,508 per 40-foot container. This has been driven by a rush of US-bound cargo ahead of expected tariff enforcement, which has tightened capacity on major routes and triggered a wave of reinstated services and container delays. Locally, South African ports have been strained by both volume and fragility. In the final week of May alone, over 84,000 containers (TEUs) moved through the country's ports, up 17% from the previous week, despite adverse weather, equipment breakdowns, and staffing shortages. Cross-border trade flows are similarly under pressure, with delays and border queue times costing the transport industry an estimated R168m in a single week, according to the latest Business Unity South Africa (Busa) and South African Association of Freight Forwarders (Saaff) cargo movement update. Procurement leads transformation Vos says that the lessons from past crises, such as Covid-19, the Ukraine war, and Red Sea shipping risks, must no longer be treated as one-offs. 'What these events all underscore is the systemic fragility of global supply networks. For South Africa, resilience must become a national priority, not a boardroom afterthought.' The country has made some strides since the pandemic, particularly in supplier diversification and localisation. Larger corporations have led the way, investing in the development of local suppliers and reshoring elements of their supply chains. But Vos cautions that progress is uneven and not always strategic. 'Much of what we see is compliance-driven localisation, designed to meet procurement thresholds, not create competitive advantage. To truly localise, we need supply-chain ecosystems: infrastructure, access to markets, skills development, and sustained demand.' Vos believes the procurement profession must play a leading role in rethinking how organisations assess and mitigate risk. This starts with visibility, not just into Tier 1 suppliers, but deep into second- and third-tier networks. Digital control towers, scenario planning, AI-driven risk analysis, and real-time geopolitical alert systems are fast becoming standard tools in resilient supply chains. However, he warns that these tools are only as good as the data, governance, and talent behind them. Another critical step is redefining how value is measured. Vos argues that procurement teams need to move beyond focusing on the lowest-cost wins. 'Efficiency and resilience are not opposites. Long-term competitiveness comes from total cost of ownership thinking, factoring in risk, sustainability, supplier health, and ESG performance.' He points to dual sourcing models, inventory buffers for critical inputs, and deeper supplier partnerships as practical measures that pay off in times of disruption. Prepare for disruption The state has a role to play, too. Vos calls for national policy frameworks that support industrial incentives, regulatory coherence, and the renewal of logistics infrastructure. But more importantly, he believes in the importance of public-private collaboration to drive change. 'Sector-wide procurement platforms, shared supplier development programmes, and joint accountability for skills and jobs- these are the mechanisms that build real resilience.' Professionalising the procurement function will also be key to long-term resilience. Qualifications like MCIPS equip practitioners with the ethical frameworks, strategic insight, and risk management tools necessary to lead through complexity. 'Professionalisation is the foundation of ethical, capable supply chains, particularly in the public sector, where procurement must be the first line of defence against waste and corruption,' says Vos. Looking ahead, South African businesses must prepare for future disruptions that are no longer hypothetical. These include the impact of carbon border taxes, cybersecurity threats, political instability, climate-driven shocks, and persistent infrastructure constraints in energy, transport and logistics. Vos argues that future-proofing means not just responding to these risks, but anticipating them, and acting now. That future will belong to those who digitise, decentralise, and decarbonise. 'To thrive through uncertainty - not just survive it - we must embed resilience in how we buy, build, and partner. The next crisis is not a matter of if, but when.'
Daily Maverick
27-05-2025
- Business
- Daily Maverick
South Africa's Supply Chain Digital Revolution: Who's Leading the Charge?
AI, cybersecurity, and advanced analytics are no longer optional extras—they are reshaping the very fabric of global supply chains. As digital transformation accelerates worldwide, South African businesses are increasingly stepping up to lead this shift. Johannesburg, 21 May 2025 – According to KPMG's 2024 Global Supply Chain Trends report, 71% of organisations are prioritising digital transformation to drive agility and resilience, with AI, advanced analytics, and cloud technologies topping the investment agenda. The report highlights a clear shift from reactive supply chain strategies to predictive and proactive models, powered by real-time data and machine learning. PwC's Digital Supply Chain Survey reinforces this, revealing that digitally mature supply chains are six times more likely to experience revenue growth and profitability than their less advanced counterparts. These leaders are using AI to refine forecasting accuracy, cloud-based platforms to enhance end-to-end visibility, and smart systems to track sustainability metrics across procurement. Meanwhile, SecurityBrief Asia's 2025 trends forecast points to a sharp rise in supply chain cyberattacks, prompting a surge in investment toward cybersecurity, encrypted data exchange, and secure-by-design infrastructure. Without strong cyber defences, the promise of digital procurement can be swiftly undermined—making resilience just as important as innovation. In South Africa, the digital momentum is gaining pace. 'We're in a period of accelerated digital exploration,' says Paul Vos, Regional Managing Director of the Chartered Institute of Procurement & Supply (CIPS) Southern Africa—the world's largest professional body serving procurement and supply professionals. 'Many organisations are moving from tactical automation to more strategic, integrated procurement practices. While not every sector is moving at the same speed, the pressure to modernise is mounting—driven by rising customer expectations, global competitiveness, and the need for supply chain transparency and resilience.' Retail giants like Woolworths, Checkers, and Massmart are at the forefront, deploying AI for omnichannel stock management, RFID-enabled inventory tracking, and predictive replenishment systems. In the financial and telecoms sectors, organisations such as FirstRand and MTN are embracing advanced sourcing models and AI-driven data platforms to enhance procurement performance and broader business value. Even in more traditional sectors, procurement teams are experimenting with chatbots, warehouse automation, and digital contract management—evidence that a quiet but determined transformation is underway. Yet, despite growing enthusiasm, the path to digital maturity isn't without obstacles. Vos identifies three key challenges facing procurement teams: Legacy Systems – Outdated technologies often don't integrate easily with new platforms, slowing adoption and innovation. Skills Gaps – Procurement teams sometimes lack the digital literacy and change management expertise needed to lead transformation. Cultural Resistance – In many organisations, procurement is still viewed as a transactional back-office function rather than a driver of strategic value. 'Budgetary constraints and uncertainty around return on investment are also major concerns,' says Vos. 'But once organisations see results from a successful project, confidence tends to grow rapidly.' To support this transition, CIPS is playing a pivotal role. Through globally benchmarked qualifications, upskilling programmes, executive briefings, and thought leadership, CIPS is helping procurement professionals and teams acquire digital fluency. 'We're not just digitising procurement—we're reimagining it,' Vos adds. 'We want professionals to lead transformation, not just survive it.' Another pressing concern is talent. Is the current pipeline of professionals equipped to meet the demands of a digital procurement future? 'The short answer is: not yet,' says Vos. 'We're seeing growing awareness, and professionals are starting to upskill—but the pace of technological change is relentless.' CIPS is addressing this by embedding digital capabilities such as data interpretation, AI literacy, and strategic sourcing into its qualifications. 'It's going to take a collaborative effort—from academia, professional bodies, and industry—to close the gap and ensure a resilient, future-ready workforce,' he notes. Looking forward, procurement in South Africa is set to become more data-driven, ethical, and interconnected. Several trends are converging to define the future: Predictive and Prescriptive Analytics – To anticipate supply disruptions and drive smarter decision-making. Sustainable and Ethical Procurement – ESG considerations are becoming non-negotiable, and digital tools are crucial for compliance. Integrated Digital Ecosystems – Fragmented systems are giving way to unified platforms with end-to-end visibility. But the most profound shift may be in the role of the procurement professional. 'Tomorrow's procurement leader will be tech-savvy, strategic, and deeply embedded in cross-functional value creation,' says Vos. 'We're witnessing the rise of a new procurement paradigm—one that sees technology not as a threat, but as a transformative ally.' As global and local trends converge, South Africa has both the ambition and the capability to lead the continent's supply chain revolution. DM
Zawya
09-05-2025
- Business
- Zawya
Relationship building in African procurement is key to economic growth and resilience
As Africa's economies evolve, procurement is quietly taking centre stage as one of the continent's most powerful drivers of growth and development. Public procurement alone accounts for an average of 17% of GDP across African countries, underpinning infrastructure projects, public services, and national progress, according to the World Bank (2023). While the sector's economic influence is undeniable, it's also undergoing significant transformation in both value and capability. In 2022, the procurement analytics market across the Middle East and Africa generated $178m (approximately R3.36bn), with forecasts predicting a compound annual growth rate (CAGR) of 25.2% through 2030 (Grand View Research). The region's retail sourcing and procurement market is also set to surpass R510m (around R9.64bn) by 2030, spurred by the demand for fast, tech-driven procurement strategies. But beyond the numbers and digital shifts, a quieter and equally important movement is gaining momentum — one centred on the strength of human connection and relationships that continue to shape procurement's future on the continent. The power of human connection 'Procurement is no longer just about transactions,' says Paul Vos, CIPS Southern Africa general manager. 'It's about creating value through partnerships. In today's complex environment, the strength of your supplier and stakeholder relationships can determine your entire supply chain's success—or failure.' This is especially true in a world where geopolitical tensions, trade disruptions, and supply chain uncertainties are becoming more frequent and more complex. From energy and commodity markets to logistics networks, procurement professionals are under mounting pressure to maintain continuity and performance in an unpredictable environment. "Strong supplier relationships become a form of strategic insurance," Vos adds. "In a volatile global landscape, it's those relationships that provide the flexibility and foresight needed to navigate disruption and still deliver results." Collaboration as competitive edge Across Africa, procurement leaders increasingly embrace collaboration, transparency, and long-term engagement as not just ethical ideals but strategic differentiators. Relationship-building is no longer a soft skill but a core driver of risk mitigation, supplier innovation, and sustainable growth. Research published in the African Journal of Procurement, Logistics and Supply Chain Management highlights a strong link between supplier relationship management (SRM) and improved organisational performance, especially in public procurement, where accountability, continuity, and trust are critical (AJOL, 2024). Similar findings on the role of SRM in boosting operational resilience are echoed in recent academic work published on ResearchGate. Vos says this relationship-led approach is already changing procurement outcomes on the continent. "In healthcare, for instance, closer cooperation between public agencies and private suppliers has helped improve the distribution of essential medicines. Long-term supplier partnerships in the energy and mining sectors enable companies to navigate fluctuating markets and logistical pressures with greater stability and confidence." Trust as a competitive advantage He adds that trust must be cultivated intentionally. "Trust doesn't appear overnight—it's earned through transparency, consistency, and mutual respect. Procurement professionals who build that trust gain a clear advantage when disruption hits." Recent global crises—notably the Covid-19 pandemic and widespread port congestion in West and Southern Africa—offered clear evidence. Organisations with stronger supplier relationships were able to activate local networks, diversify sourcing quickly, and maintain operations under pressure, while those relying on rigid or siloed contracts struggled to adapt. Technology is enhancing these dynamics rather than replacing them. AI-powered supplier scorecards, blockchain-enabled procurement systems, and cloud-based collaboration platforms are making it easier to track performance, share information, and deepen supplier engagement. "Digital transformation is a critical enabler," says Vos. "But it works best when it supports a strong foundation of human relationships. Data can tell you what's happening in your supply chain, but only trust and collaboration can drive the strategic responses needed to stay competitive." One major benefit of strong relationships is accelerated innovation. In sectors such as telecommunications and agriculture, organisations that engage suppliers in early-stage planning and design improve time-to-market, efficiency, and cost-effectiveness. "When you treat suppliers as true partners, they're more willing to bring new ideas to the table," Vos explains. "That's how you unlock innovation—not through pressure, but collaboration." Diversity also shapes how procurement teams build and maintain these partnerships. The increasing presence of women in procurement leadership strengthens relationship-driven approaches and contributes to a more values-based culture. Recognising this, CIPS Africa will launch the new She Inspires Award at the upcoming CIPS Africa Conference & Awards 2025 to celebrate women driving excellence across the profession. "Women-led procurement teams are often at the forefront of sustainability, social procurement, and ethical sourcing," says Vos. "We want to celebrate that impact and create platforms where more women can lead, influence and inspire across the profession." These ideas will form the core of the discussion at the CIPS Africa Conference & Awards 2025, set for 6–7 August at The Houghton Hotel in Johannesburg. Under the theme "Connect & Engage", the event will explore how stronger connections between buyers and suppliers, public and private sectors, and professionals across borders can unlock new levels of procurement excellence. 'This year's conference is not just about learning—it's about connecting,' Vos says. 'It's a space for procurement professionals to share, collaborate, and build the kind of relationships that will define the future of our industry.' All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
