The experts raised the concerns during the Digital Procurement Africa Summit held in Lagos, where procurement professionals, supply chain executives, and business leaders examined strategies for accelerating digital transformation within procurement operations.
Speaking at the summit themed, “Accelerating Procurement Transformation for Large Enterprise in the Digital Era,” the Chief Executive Officer of Gloopro, Olumide Olusanya, said many organisations across Africa were still struggling with poor procurement digitisation despite growing global interest in Artificial Intelligence-driven procurement systems.
According to him, fragmented procurement records, weak data accessibility, and outdated procurement processes remain major barriers preventing organisations from fully leveraging artificial intelligence, automation, predictive analytics, and compliance monitoring technologies.
“AI depends on data. Organisations must first digitise procurement activities before artificial intelligence can deliver meaningful value within procurement operations,” Olusanya stated.
He explained that several procurement activities still occur outside structured digital platforms, thereby limiting transparency, weakening governance systems, and making AI deployment ineffective or potentially risky.
Olusanya noted that organisations embracing digital procurement systems were already recording significant operational gains, including about 67 per cent reduction in procurement turnaround time.
He added that technology-driven procurement platforms also improve transaction visibility, supplier coordination, approval workflows, and compliance oversight across departments.
According to him, procurement-as-a-service models are increasingly helping organisations reduce operational costs while improving efficiency through externally managed digital procurement platforms.
Olusanya urged organisations across Africa to prioritise procurement digitisation as part of broader governance and operational reform efforts aimed at improving accountability and transparency.
Also speaking, Indirect Procurement Manager, Supplier Chain at The Coca-Cola Company, Adenrele Thompson warned that organisations delaying procurement digitisation could face growing operational and governance challenges in increasingly technology-driven business environments.
“If you are not digital, it is only a matter of time. The consequences are inevitable,” Thompson said.
He stressed that repeated bypassing of approved procurement systems weakens compliance culture and creates governance gaps capable of undermining institutional accountability.
Thompson further highlighted the growing risks associated with unmanaged tail spend, explaining that frequent low-value purchases often escape adequate scrutiny because individual transactions appear financially insignificant.
According to him, such practices gradually normalise weak procurement behaviour, expose organisations to control failures, and reduce operational discipline over time.
Also contributing, Chukwuma Nkwodinmah, Supply Chain Leader at Aradel Holdings, warned that repeated emergency purchases outside approved procurement channels often create parallel procurement structures lacking proper oversight and accountability.
He explained that unmanaged procurement systems increase exposure to fraud risks, regulatory violations, reputational damage, and operational inefficiencies.
“Once executives begin to see procurement leakage as governance failure rather than operational inefficiency, organisations will pay greater attention to controlling unmanaged spending,” Nkwodinmah stated.
The experts collectively called on organisations to strengthen procurement governance structures, improve digital visibility, and invest in structured procurement data systems to enhance compliance, reduce leakages, and position their operations for effective AI adoption.
What do you think about this?
Drop your opinion in the comment section.
FOLLOW US & Share this with someone who needs to see this.
