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Monitor your procurement process and eliminate corruption
PROCUREMENT HAS CHANGED. SO SHOULD YOUR COMPLIANCE SYSTEM
How to find the right procurement management system?
Many organisations find selecting a procurement management system a daunting task. But this doesn’t have to be the case. To go back to basics, the fundamental function of all procurement systems is to mitigate the risk of a business not complying with legislation, regulations and correct internal policies. Procurement systems must therefore implement rigorous vetting processes and supplier management controls to meet compliance and audit requirements while still being adaptable and user-friendly.
Ideally the system should:
Be flexible and scalable, adapting to changes over time
Be guided by technologies which allow for automated and responsive data analysis
Address key focus areas such as supplier vetting, monitoring of vendors and employees, process and database management, and regular reporting
Offer insight into business risks in order to prevent the financial losses and reputable risks associated with fraud and corruption
Ensure compliance with anti-bribery and anti-corruption legislation
According to PwC’s biennial Global Economic Crime and fraud Survey 2020 South Africa , 77% of South African businesses and organisations have experienced economic crime – a staggering figure. Of the crimes, asset misappropriation has been experienced by 49% of respondents, “fraud committed by the consumer” – a new category, by 44%, and 39% have experienced procurement fraud.
The biggest mistake in procurement management is made by not investing in the best available technologies and tools. Consider the following scenario. After much thorough research into the most appropriate software solution, a powerful, easy to use web-based system solution is implemented which amongst many other features:
The recent instruction by National Treasury to all government departments to halt the emergency procurement of personal protective equipment (PPE) has once again highlighted the need for the urgent review and modernisation of the public procurement system.
The COVID-19 pandemic has resulted in unexpected and emergency procurement of good and services. On a global basis this procurement has stretched public and private sector resources and put procurement under the spotlight.