Procurement and supply chain experts have identified poor data visibility and outdated procurement systems as major barriers limiting the adoption of Artificial Intelligence across many African organisations.
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The experts disclosed this during the Digital Procurement Africa Summit held in Lagos and powered by Gloopro.
The summit, themed “Accelerating Procurement Transformation for Large Enterprise in the Digital Era,” brought together procurement professionals, supply chain managers, and business leaders to discuss digital transformation within procurement operations.
What they are saying
Speaking at the event, Olumide Olusanya, Chief Executive Officer of Gloopro, said many African organisations still struggle with procurement digitisation despite growing global interest in AI-driven procurement systems.
According to him, organisations must first establish structured, accessible, and reliable procurement data systems before deploying artificial intelligence solutions effectively.
- “AI depends on data. Organisations must first digitise procurement activities before artificial intelligence can deliver meaningful value within procurement operations,” Olusanya said.
He explained that many procurement activities still occur outside digital platforms, making artificial intelligence deployment difficult, ineffective, and potentially risky for governance systems.
Olusanya noted that fragmented procurement records and poor data accessibility often prevent organisations from fully benefiting from automation, predictive analytics, and compliance monitoring systems.
He added that organisations across Africa must prioritise procurement digitisation to improve transparency, operational efficiency, and accountability within procurement and supplier management processes.
More insights
On procurement-as-a-service, Olusanya described the model as a digital outsourcing approach that enables organisations to manage procurement operations through external technology-driven platforms.
According to him, the model helps organisations reduce operational costs while improving procurement turnaround time, supplier coordination, and transaction visibility across departments.
Olusanya stated that digital procurement systems were already reducing procurement turnaround time by about 67% in organisations embracing technology-driven procurement operations.
He added that digital systems also strengthen compliance oversight by improving monitoring mechanisms, approval processes, and transparency across procurement transactions and supplier engagements.
Also speaking, Adenrele Thompson, Indirect Procurement Manager, Supplier Chain, at The Coca-Cola Company, said digital procurement systems were becoming increasingly essential for sustainable business operations.
- “If you are not digital, it is only a matter of time. The consequences are inevitable,” Thompson said.
He warned that organisations resisting procurement digitisation would eventually face operational difficulties and governance challenges within increasingly technology-driven business environments.
- According to Thompson, repeated bypassing of approved procurement systems gradually weakens compliance culture and creates governance gaps across organisations.
- He explained that tail spend often involves frequent low-value transactions receiving minimal scrutiny because individual purchases appear financially insignificant.
- Thompson warned that such practices could gradually normalise weak procurement behaviour and undermine institutional accountability, transparency, and operational discipline.
Also speaking at the summit, Chukwuma Nkwodinmah, Supply Chain Leader at Aradel Holdings, warned that unmanaged procurement transactions expose organisations to financial, regulatory, and reputational risks.
Nkwodinmah explained that repeated emergency purchases outside approved procurement systems often create parallel procurement structures lacking transparency and effective accountability mechanisms.
According to him, weak oversight within unmanaged procurement systems could increase exposure to fraud risks, compliance breaches, and operational inefficiencies across organisations.
- “Once executives begin to see procurement leakage as governance failure rather than operational inefficiency, organisations will pay greater attention to controlling unmanaged spending,” he said.
He urged organisations to strengthen procurement governance structures and improve digital visibility across procurement operations to reduce long-term compliance and operational risks.
What you should know
The calls for digitization of procurement processes comes as organisations and governments move to block loopholes across the procurement value chain.
Earlier this year, the Director-General of the Bureau of Public Procurement (BPP), Mr. Adebowale Adedokun, said the ongoing procurement reforms in the country helped the Federal Government save more than N1.1 trillion between January and December 2025.
In addition to the cost savings, the bureau reported shorter contract approval timelines and stricter sanctions against erring contractors and non-compliant government officials.
