The rapid digital transformation of industries globally is driving a major shift in how businesses approach supply chain and procurement management. In Nigeria, the integration of new technologies, particularly e-sourcing tools like Ariba and SAP, is revolutionizing procurement processes and creating new opportunities for efficiency, transparency, and cost savings. However, the adoption and successful implementation of these tools require more than just technology; they need a strong foundation of awareness, education, and collaboration among all stakeholders. Mojisola Adeyinka, Head of Procurement at TotalEnergies Nigeria, is at the forefront of championing this digital revolution in procurement, emphasizing the crucial role of awareness and education in ensuring the successful inclusion of these tools in Nigeria’s supply chain ecosystem.
The Need for Awareness and Education
Mojisola Adeyinka emphasizes that one of the key barriers to the widespread adoption of e-sourcing tools in Nigeria’s supply chain sector is a lack of awareness and education on the part of procurement professionals and businesses alike. While these tools offer significant potential to optimize procurement processes, reduce costs, and improve transparency, many companies and professionals are still unaware of their benefits and how to leverage them effectively.
“Awareness and education are fundamental in the adoption of new technologies in the supply chain and procurement sectors. Many businesses and professionals are still operating in traditional ways because they simply aren’t aware of the advantages that digital tools like e-sourcing platforms bring,” Adeyinka explains. “We need to bridge this knowledge gap through comprehensive education and hands-on training programs to ensure that stakeholders fully understand the potential of these tools.”
For Adeyinka, awareness starts with identifying the needs and challenges of businesses and tailoring educational content that speaks to these issues. She believes that the conversation around the integration of e-sourcing tools in Nigeria’s supply chain must go beyond the technology itself, focusing also on how it addresses specific business challenges, such as procurement inefficiencies, lack of transparency, and rising operational costs.
The Role of E-Sourcing Tools in Procurement Efficiency
The inclusion of e-sourcing tools like Ariba and SAP in procurement has brought about a revolution in how businesses manage their purchasing activities. These platforms allow organizations to automate and streamline procurement processes, from sourcing suppliers to managing contracts and purchase orders. They provide real-time data, enhance transparency, and allow for more effective supplier management, which ultimately contributes to better decision-making and significant cost savings.
At TotalEnergies Nigeria, Adeyinka has seen the positive impact of these tools in optimizing procurement activities. For example, by utilizing SAP and Ariba, TotalEnergies Nigeria has reduced procurement costs by 15% in the past year alone. “The ability to quickly access and analyze data, automate repetitive tasks, and track procurement performance has made a huge difference,” she says. “These tools provide insights that help us make smarter purchasing decisions and avoid unnecessary costs.”
However, as Adeyinka points out, the true potential of e-sourcing tools can only be realized when the workforce is properly educated on their usage. Without adequate training and awareness, these tools may not be fully utilized, leading to missed opportunities for optimization.
Key Stats: The Growing Importance of E-Sourcing Tools
According to a 2023 report by Gartner, 68% of supply chain leaders globally have adopted some form of digital tool to enhance procurement efficiency, with 50% of organizations planning to further integrate digital solutions like e-sourcing platforms within the next two years. In Nigeria, however, the adoption rate of these technologies remains lower, with a PwC study indicating that only 45% of Nigerian procurement professionals are using e-sourcing tools in their day-to-day operations. This highlights the need for greater awareness and education in the sector.
Additionally, the same report by Gartner found that organizations that successfully implemented e-sourcing tools experienced an average 20% reduction in procurement costs within the first year of adoption. This underscores the financial value that these tools can bring to businesses, providing a clear incentive for Nigerian companies to invest in education and training.
The Role of Government and Stakeholders
While businesses and professionals play a critical role in adopting and implementing new technology, the government and other key stakeholders must also take an active role in promoting digital transformation in Nigeria’s supply chain and procurement sectors. Government policies and initiatives can help create an enabling environment for the adoption of digital tools, fostering growth and innovation across the industry.
Mojisola Adeyinka advocates for the Nigerian government to invest in programs that promote digital literacy and support the education of procurement professionals on emerging technologies. “Government initiatives such as public-private partnerships can facilitate the development of digital skills in supply chain management. They can also help subsidize or incentivize the adoption of e-sourcing tools by offering grants or tax incentives to companies willing to invest in digital transformation,” she suggests.
The Nigerian government can collaborate with industry associations, educational institutions, and technology providers to create targeted educational programs, workshops, and certifications that enhance the skills of procurement professionals. Additionally, offering tax incentives to businesses that invest in technology training for their employees can accelerate the adoption of digital tools across the supply chain sector.
Collaboration with Academic Institutions
Collaboration between the private sector and educational institutions is another crucial avenue for promoting awareness and education on e-sourcing tools in Nigeria. By integrating digital procurement and supply chain management courses into university curricula, educational institutions can equip the next generation of professionals with the necessary skills to excel in a digitally-driven industry.
“We need to align academic curricula with the demands of the industry,” Adeyinka says. “This will ensure that students are not only knowledgeable about traditional procurement practices but are also equipped with the skills to navigate the digital procurement landscape and adapt to new technologies.”
Conclusion: A Collaborative Approach to Digital Transformation
The inclusion of new technologies, such as e-sourcing tools, in Nigeria’s supply chain and procurement sector is no longer a luxury—it’s a necessity for competitiveness, efficiency, and cost optimization. However, for these tools to be fully integrated into business operations, there must be a concerted effort to build awareness and educate professionals on their benefits and usage.
Mojisola Adeyinka’s work at TotalEnergies Nigeria serves as a powerful example of how digital tools can revolutionize procurement processes, but her insights also highlight the importance of continuous education in ensuring that these tools are used to their full potential. With key statistics showing a clear link between digital adoption and cost savings, the Nigerian supply chain industry stands to benefit significantly from increased awareness and training.
By fostering a collaborative approach that includes government support, industry partnerships, and educational initiatives, Nigeria can accelerate the digital transformation of its supply chain and procurement sectors. This will ultimately lead to greater operational efficiency, cost savings, and increased competitiveness in both local and global markets.
