emerging markets Content

Bangladesh Global Sourcing Blowback

Following the building collapse accident that is now estimated to have claimed over a thousand lives, the Bangladesh government shut down eighteen factories last week. […]

Emerging Market Watch: Procurement Sophistication in Africa (Part 2) [Plus+]

Continuing on, we come to the topic of indirect spend. Although I had the impression that the private sector buyers were direct side, and many were heavily mired in transactional activities, there were a few strong signs of interest in the indirect side. One participant from a Mombasa-based coffee firm (sophisticated enough to run SAP for all their transactions) revealed that their indirect spend is now on the list of priorities. Perhaps we’ll see full-service strategic sourcing firms begin to enter the market to help companies reduce their indirect material costs. At the very least, it seems to be a decent market expansion opportunity for Western firms willing to bet on a truly emerging market with procurement teams that are becoming more sophisticated and aware (but with an internal focus on direct spend, primarily).

Emerging Market Watch: Procurement Sophistication in Africa [Plus+]

In general, African procurement organizations would do well to become more quantitative and analytical in their orientation toward spend and supplier data. As with a lack of more advanced sourcing approaches reliant on increasing sources of data, companies area also somewhat blind when it comes to basic spend visibility. I noticed the absence of a baseline spend understanding during the early parts of the conference, and it was obvious during my own presentation that spend analysis in the general sourcing sense is a fresh subject in the region. It’s like the early 2000s all over again – an opportunity for expat practitioners to perform “miracles” at your Kenyan subsidiaries, as well as for solution providers to deliver great savings. There must be exceptions (nobody was there from Coca-Cola for example) but by and large this felt like a Greenfield opportunity.

Asia and Procurement “Emerged Markets” – Get Here or Go Home (Part 3) [Plus+]

In the first two installments (Part 1 and Part 2) of this series, I provided an overview of recent Asian procurement market observations and trends based on attending the recent ProcureCon Asia event – and my own experience working in and with the region in global sourcing and manufacturing over the past two decades. The series continues with a round-up of country-specific procurement observations and trends.

Asia and Procurement “Emerged Markets” – Get Here or Go Home (Part 1) [Plus+]

Earlier this week, I attended the inaugural ProcureCon Asia event. For a first-time conference (in Asia), it was a success. Over 150 participants from all over Southeast Asia and India converged on Singapore for the conference. There were several impressive speakers and materially insightful content. It was perhaps not as consistently smoothly executed as in the USA (where the company has been running procurement events for over 10 years) but quite good for a first time effort, and all visitors I spoke with enjoyed it as well as the content.