Phone Nigeria – Why Technology Adoption Is Still Slow In Nigeria

What are the challenges you are facing?
Being an online solution, one of the challenges we face in the business today is that technology adoption in this part of the world is still in slow motion, it sometimes requires handholding with all stakeholders.

Again, another challenge is that of bringing everyone in an organisation together to work as a single cross-functional sourcing team. Everyone has to work off of the same processes, the same forecasts, and the same plan. The use of e-sourcing applications requires behaviour changes on the part of sourcing personnel and that is difficult in our environment. Suppliers can be resistant because this could be perceived as a threat to existing relationships with buyers. On the contrary, the solution will only help them consolidate this relationship and make them benefit even more.

What is e-sourcing?
It is the use of web-based platforms to support all steps in the sourcing process, including spending analysis, demand aggregation, requirements definition, supplier discovery, negotiations (RFI, RFP and RFQ, reverse auctions), evaluation and contract management.

E-sourcing initiatives can help firms to reduce sourcing cycle times by more than 25 per cent and cut time-to-market cycles by 10 per cent to 15 per cent. Again this solution will reduce the actual cost of procuring goods and services as well as the administrative cost associated with process of procurement.

This solution will provide access to better-quality inputs and a more responsive supply base. Some of the benefits of e-sourcing include saving time through seamless information transfer; improving productivity with template re-use, such as project templates, RF(x) templates and documents; enabling full transparency when monitoring or reporting; creating collaboration between key stakeholders and team members.

It also ensures unified measurement of KPIs and follow up on sourcing goals on equal terms; increases savings by strong functionality with scenario building possibilities, enabling more informed and constructive decisions; identifying and negotiating with a broad range of qualified suppliers.

The solution can reduce process costs for sourcing engagements; shorten sourcing cycles by 25 to 30 per cent; and reduce time-to-market cycles by 10 to 15per cent.

How do you think this business can boost the Nigerian economy?
The solution builds on the recent success that has been seen in the telecoms and computing industries in Nigeria. With the launch of Glo 1 improving Internet backbone and connectivity in the country, this web-based solution leverages the increased Internet bandwidth to foster collaboration between various stakeholders in the private and public sector. The usual geographic barriers will no longer be an issue when procuring products and services. A supplier whose primary base is in Abuja can respond to quotations from buyers based in other states at no cost.

Given the current sloppy growth in the state of the Nigerian economy, it is evident that a crucial missing component in the business (private and public) is accountability and transparency, the attorney-general of the Federation recently said that 80 per cent of corrupt practices in the country are associated with procurement practice and this solution offers complete transparency for all stakeholders, the Bureau of Public Procurement can use this solution to optimise public procurement processes and increase productivity, accountability, transparency and best practice.

The Small Business Administration can also encourage small business around the country to embrace this solution as a business development driver for their businesses. If registered as a supplier, small business can bid for public opportunities and can pitch their catalogues to prospective buyers (procurement organisations) around the country.

What is your client base and who are on your list?
E-sourcing is a new initiative with commercial launch scheduled for Q1 next year. We expect client base to consist of companies in the private sector (financial services, telecoms, manufacturing, and airlines) as well as government agencies at the federal and state levels

What do you charge your client?
This depends on the solution the client is buying. We have basic, premium and professional packages. We recommend professional packages for large organisations, which give them access to our professional services and support.

What are the things you would change about the business?
We will continue to work with our client base to modify our business model as deemed necessary.

How do you see the business in five years time?
We project that this will be a catalyst to develop the business to business e-solutions market in Nigeria; we estimate that the business can grow to a $5m in about five years.

Can you put a price on the different solutions your clients buy?
Prices vary depending on the solution, ranging from N5m at the low end to N20m at the high-end for annual subscriptions for buyers. Suppliers will not pay to use the solution.

Phone Nigeria