Businesses Embrace Digital Procurement
Nigerian companies are speeding up the adoption of digital procurement platforms as they seek greater efficiency and transparency.
Industry leaders say businesses now view procurement as a strategic function rather than a routine administrative task.
The trend emerged during the inaugural Digital Procurement Africa Summit held recently in Lagos.
The event brought together procurement executives, supply chain experts and technology providers from across the continent.
Companies Target Cost Savings and Efficiency
Participants at the summit highlighted the growing need to automate procurement processes.
Many organisations still rely on fragmented manual systems that slow operations and limit visibility.
Experts noted that digital platforms help businesses centralise purchasing activities and streamline supplier management.
As a result, companies can reduce procurement costs, improve compliance and shorten purchasing cycles.
Tail Spend Remains a Major Challenge
Speaking at the summit, Gloopro Chief Executive Officer, Olumide Olusanya, identified “tail spend” as a major concern for many organisations.
He explained that low-value purchases often escape formal procurement controls despite representing a significant share of company spending.
According to him, digital procurement systems can provide better oversight and improve spending governance.
Furthermore, they help organisations eliminate inefficiencies associated with manual procurement processes.
Procurement-as-a-Service Gains Attention
Olusanya also highlighted the benefits of procurement-as-a-service models.
Under this approach, businesses access procurement expertise through specialised platforms instead of maintaining large internal teams.
He said the model offers improved visibility, stronger compliance and lower operating costs.
Consequently, many companies are exploring technology-driven procurement solutions to enhance competitiveness.
Artificial Intelligence Depends on Quality Data
Artificial intelligence featured prominently in discussions throughout the summit.
However, industry leaders stressed that successful AI adoption requires reliable digital data.
Olusanya noted that many African organisations remain in the early stages of digital transformation.
He explained that companies must first digitise procurement records before benefiting fully from predictive analytics and automation.
“AI is based on data,” he said.
Supplier Risk Management Takes Centre Stage
Another major topic was supplier risk management.
Moody’s Director, Raphael Ikonagbon, said many organisations have strong visibility into primary suppliers but limited insight into second- and third-tier vendors.
According to him, these blind spots can expose companies to financial and operational risks.
He added that procurement data remains one of the most underutilised sources of business intelligence.
Better use of such data can reveal supplier performance trends and potential vulnerabilities.
Industry Leaders Share Insights
The summit featured a panel discussion moderated by Africa Centre for Supply Chain National Coordinator, Stephen Adeloro.
Panelists included Berger Paints Nigeria Plc Chief Operating Officer, Kayode Momoh; procurement executive Modupe Oyeneyin; and Flour Mills Nigeria Plc Group Supply Chain Director, Cephas Afebuameh.
The speakers discussed practical strategies for implementing digital procurement systems and strengthening procurement governance.
Growing Interest Signals Market Shift
Organisers said interest in the summit surpassed expectations.
They noted that more African businesses now recognise the role procurement plays in profitability and long-term growth.
As companies pursue digital transformation, procurement technology is becoming a key tool for improving efficiency, managing risks and driving sustainable business performance.
