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ProcureTech: Is It Finally Time to Disrupt How ERPs Are Used for Procurement in Africa?

December 16, 2024
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ProcureTech: Is It Finally Time to Disrupt How ERPs Are Used for Procurement in Africa?

Techweez by Techweez
December 16, 2024
in Features
Reading Time: 4 mins read
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procure-tech

The global ProcureTech market is experiencing rapid growth as organizations increasingly recognize the transformative power of digital procurement tools. Valued at approximately $5 billion in 2023, the market is projected to grow at a compound annual growth rate (CAGR) of over 10% in the coming years. Innovations such as AI-driven analytics, blockchain for supplier verification, and machine learning-based procurement forecasting are revolutionizing how businesses manage their procurement activities.

In developed markets like North America and Europe, ProcureTech platforms have become indispensable for companies aiming to streamline operations, cut costs and enhance compliance. Real-time data, predictive analytics and supplier diversity initiatives are driving widespread adoption. The COVID-19 pandemic further highlighted the need for resilient, tech-enabled supply chains, prompting even mid-sized companies to invest in procurement technologies.

In Africa, however, digital procurement adoption remains in its early stages, presenting significant opportunities for growth. Many organizations still rely on manual systems, which are inefficient and prone to corruption and non-compliance. But the tide is shifting. Platforms like Scale (www.scale.co.ke) exemplify how African businesses are beginning to embrace digital transformation in procurement.

“What’s exciting about launching this in Africa is the untapped potential,” explains Brian Mung’ei, COO at Scale. “With Scale, we’re not just catching up to global trends—we’re leading the continent into a future where technology makes procurement smarter, more inclusive, and more efficient.”

The continent’s expanding digital economy, improving internet connectivity, and growing awareness of e-procurement benefits are driving the emergence of Africa’s ProcureTech market. Locally tailored solutions – like Scale’s focus on supplier verification and diversity – are critical to unlocking this potential.

Scale’s Vision for Digitizing Procurement

In an exclusive interview with Techweez, the Scale team shared their bold vision of transforming Africa’s procurement landscape. Unlike traditional Enterprise Resource Planning (ERP) systems, Scale is not a bulky, generalized database. Instead this Kenyan-born e-procurement platform is a tool purpose-built as a solution that addresses the region’s unique challenges in procurement.

“We saw how inefficient procurement processes were holding businesses back. Manual systems, high costs and lack of transparency were the norm,” says Brian. “With Scale, we’re bringing efficiency, compliance, and cost-effectiveness to the forefront.”

ERP systems are often overly complex, requiring significant customization to support procurement functions, which are just one part of their wide-ranging capabilities. Scale, by contrast, focuses exclusively on procurement. Its lean, targeted approach simplifies adoption, reduces costs and directly addresses the challenges faced by procurement teams.

At its core, Scale is a cloud-based platform connecting buyers to a robust network of pre-vetted suppliers. The platform automates and digitizes the entire procurement lifecycle, offering key features such as:

  • End-to-End Sourcing: Manage RFIs, RFPs, and RFQs digitally with real-time tracking to ensure transparency and shorten time-to-contract.
  • Supplier Management: Centralize supplier interactions to streamline onboarding, ensure compliance, and foster stronger, long-term relationships.
  • Spend Analytics: Generate actionable insights through dashboards and reports, helping procurement teams identify cost-saving opportunities and optimize spending.

“We’ve designed Scale to solve the everyday pain points of procurement teams, whether it’s juggling multiple supplier relationships or struggling to stay compliant,” adds Brian.

Why Scale Matters for Companies & their Procurement Teams

“Procurement teams are often seen as cost centers, facing immense pressure to balance cost efficiency with compliance and quality,” Brian explains. “With Scale, they can demonstrate their strategic value by delivering measurable savings and driving operational excellence.”

The platform has already attracted an impressive roster of clients across diverse industries. Nation Media Group, one of East Africa’s largest media houses, has successfully implemented Scale to streamline its procurement workflows. Similarly, innovative companies like M-Kopa, Davis & Shirtliff, and SunCulture have turned to the platform to optimize their supply chain management.

Scale’s approach differs significantly from traditional Enterprise Resource Planning (ERP) systems. Rather than offering a complex, one-size-fits-all solution, the platform is designed specifically to address the unique challenges of African procurement. Its cloud-based system automates manual processes, reduces administrative workloads, and provides real-time tracking and reporting.

Strategic partnerships with the Kenya Private Sector Alliance (KEPSA) and the Kenya Institute of Supplies Management (KISM) are proof of Scale’s commitment to driving digital transformation. Through these collaborations, Scale can educate and empower businesses about the benefits of modern procurement technologies.

Automation means everything for companies in the 21st century. Scale claims that its automation process can reduce administrative workloads by up to 80%. For organizations like Amani Organization Italian Cooperation, this means more time and resources can be directed towards core business objectives.

Africa’s economic future depends on the efficiency and transparency of its supply chains. Yet, many organizations across the continent continue to grapple with outdated procurement methods and manual processes. Scale’s platform is set to be a catalyst for change.

“As African businesses grow and expand, they need modern tools to compete globally,” says Brian. “Scale not only reduces costs and inefficiencies but also drives transparency and trust – two critical factors for sustainable growth.”

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Techweez is an award winning Tech blog, top 100 gadgets blog and leading technology news site in East Africa. Follow us for exclusive interviews and authoritative stories on Technology. Talk to us at [email protected]

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