Enabling the benefits of a modern connected life to everyone.
DRIVING VALUE AND INNOVATION
Dirk Karl and Andrew Savage on Shaping MTN’s Future Supply Chain Strategy
In this exclusive interview with Dirk Karl, Chief Procurement Officer and Member of the Board, Global Sourcing Company, and Andrew Savage, Global Lead for Procurement Excellence at MTN, we explore the strategies driving the success of Africa’s largest mobile network operator. As part of MTN’s Global Sourcing & Supply Chain (GSSC) team, Dirk and Andrew share their insights into the company’s transformation, their approach to creating value through strategic supplier partnerships, and the innovations that are reshaping MTN’s supply chain. From data-driven decision-making to building agile and sustainable operations, they discuss how their leadership is steering MTN toward achieving long-term growth and success across Africa’s rapidly evolving telecommunications sector.
Career Journey
Can you share your career journey and the experiences that led you to your role at GSSC MTN? How have these experiences shaped your approach to leadership in procurement and supply chain?
Answer by Dirk Karl, Chief Procurement Officer at MTN
My career spans over 25 years in strategic sourcing, supply chain management, and IT, across sectors like telecommunications, automotive, and finance. Prior to joining MTN Group in 2017, I was part of the founding team at BUYIN, a telecom procurement alliance. Currently, I serve as the Group Executive and Chief Procurement Officer (CPO) for Global Sourcing and Supply Chain at MTN Group, overseeing operations across 17 countries with a multi billion dollar annual spend, supporting over 290 million subscribers.
At MTN, I’ve driven significant strategic improvements, achieving more than a 30% increase in EBITDA from our sourcing business. I also serve as a Board Member of the Joint Alliance for CSR (JAC), focusing on sustainability in the telecom supply chain.
Throughout my career, I’ve championed procurement as a strategic partner, not just a cost centre. I built a data science unit within GSSC around 8 years ago so we were early adopters in that space, since then we have developed in-house AI solutions to proactively mitigate risks and negotiate value-driven agreements, exemplified by our multi award winning “Px360” platform. I’ve integrated sustainability into every decision, working on initiatives to reduce Scope 3 emissions and driving social and environmental improvements. Additionally, investing in people has been key. Through the Agile Sourcing Model and SCRUM certifications, I’ve seen teams evolve into innovative, cross-functional partners. These experiences reinforce my belief that procurement can generate new revenue streams and propel growth. Under my leadership, GSSC has earned multiple global accolades, showcasing our success in transforming procurement into a core driver of business value.
Career Journey
Can you share your career journey and the experiences that led you to your role at GSSC MTN? How have these experiences shaped your approach to leadership in procurement and supply chain?
Answer by Andrew Savage, Global Lead: Procurement Lead at MTN
I started my career in procurement and supply chain with a strong focus on operational efficiency, strategic sourcing, and digital transformation. Over the years, I have worked across various industries, gaining experience in global procurement, supplier relationship management, and risk mitigation strategies.
Before joining MTN, I held leadership positions within the consulting industry where I was responsible for driving cost optimisation, enhancing procurement agility, and implementing innovative supply chain solutions. These roles exposed me to diverse challenges, such as navigating complex negotiations with global suppliers and leveraging data analytics for better procurement decisionmaking.
At MTN’s Global Sourcing & Supply Chain (GSSC), I lead the Procurement Excellence function. My responsibilities include driving global procurement transformation initiatives, enhancing operational efficiency across the Group and its 17+ markets, and implementing innovative strategies within the organisation.
My leadership philosophy is centered around three key pillars:
• Data-Driven Decision Making: I advocate for the use of AI, predictive analytics, and digital tools to enhance sourcing efficiency and mitigate risks. I am particularly passionate about using data and game theory in negotiations, as I believe that the insights from data points are more important than simply implementing a platform.
• Agile & Collaborative Leadership: I believe in empowering teams, fostering an agile mindset, and breaking down silos between teams to drive greater collaboration.
• Sustainable & Value-Based Procurement: I view procurement as an area that can deliver far more than just cost savings. By focusing on long-term strategic value, supplier partnerships, ESG compliance, and innovation, we can create more sustainable value for the business.
These experiences have shaped my leadership approach, reinforcing my belief that procurement must be forward-thinking, collaborative, and focused on delivering value beyond the immediate bottom line.
GSSCs Role in MTN’s Operations
MTN is a leader in telecommunications across several markets. How does the procurement and supply chain team at GSSC MTN contribute to the company’s growth and operational success in such a dynamic industry?
Answer by Andrew Savage, Global Lead: Procurement Lead at MTN
The GSSC strategy is closely aligned with MTN’s Ambition 2025 strategy, with a strong focus on delivering the benefits of a modern connected life to our customers. To achieve this, the GSSC team oversees strategic sourcing and supply chain operations for MTN Group. As Africa’s largest mobile network operator, we manage over USD 6 billion in annual spend across 20,000 suppliers and 17+ markets across Africa, handling highly complex supply chain operations.
At GSSC, our primary focus is value creation, not just cost savings. We’ve identified eight core pillars that define how we deliver value to our stakeholders. These pillars include:
1. Transforming from a cost centre to a value-generating function
2. Proactively managing risks through advanced analytics
3. Adopting an industry-first agile operating model
4. Integrating ESG (Environmental, Social, and Governance) into strategic sourcing
5. Externalising procurement services for increased efficiency
6. Driving digital transformation with an in-house data science team
7. Fostering innovation and collaboration
8. Enhancing people and talent development
We leverage advanced data-driven decision-making frameworks to ensure that these eight pillars are fully embedded across the GSSC organisation. By doing so, we can support MTN’s overall growth and success, ensuring that our procurement and supply chain functions are both efficient and aligned with the company’s broader objectives.
Procurement Excellence
Your team is covered in procurement and supply chain accolades. What makes GSSC such an award winning team?
Answer by Andrew Savage, Global Lead: Procurement Lead at MTN
The GSSC team focuses on refining the procurement operating model to address complex business requirements. In today’s challenging macroeconomic environment, we must strike an optimal balance between cost, agility, and high-quality service delivery to our customers. Unlike most procurement transformations that focus on specific projects or digital enablement, we embarked on a comprehensive 360-degree transformation journey, shifting our procurement function from a cost centre to a revenue-generating and value-creating entity.
Our transformation program involved a complete overhaul of our procurement operating model to enhance agility, implementing a sustainable sourcing strategy to reduce scope 3 emissions, embracing data-driven decision-making, and upskilling our talent pool. We also foster innovation through AI and machine learning, ensuring procurement is seen not as a cost centre but as a strategic driver of revenue.
As we have matured in our agile operating model journey, the GSSC procurement excellence team now uses data analytics and automation to optimise strategic sourcing negotiations and streamline processes. This has significantly reduced manual, time-consuming activities and enhanced overall efficiency.
We have also developed in-house tools that support our sourcing function by adopting data-driven decision-making platforms and supply chain risk management frameworks, powered by advanced technologies like machine learning and artificial intelligence. For example, our expert sourcing teams use price curves within each category, and our scenario analysis tool evaluates millions of possible sourcing award scenarios to identify the best negotiation options.
A standout innovation is our AI-enabled virtual assistant, GeSSiCa, which scans the entire procurement ecosystem for bundling opportunities. The fusion of procurement and data science has been a game-changer, and we have been at the forefront of this shift, establishing this function back in 2017.
Finally, we invest heavily in our team. GSSC implemented an agile sourcing process to ensure rapid response to business requirements. To support this, we trained all our category managers in Scrum certification and regularly hold skill upgrade sessions on negotiations, spend analysis, data science, and other digital platforms in procurement and supply chain.
This combination of innovation, data-driven decision-making, and continuous skill development has been key to our industry leadership and continued success.
Advice for Future Leaders in Procurement and Supply Chain
As a leader in procurement, what advice would you give to those striving for procurement excellence?
Answer by Andrew Savage, Global Lead: Procurement Lead at MTN
Procurement and supply chain management are evolving rapidly due to technological advancements, sustainability goals, and the increasing complexity of global markets. To achieve procurement excellence, future leaders should focus on:
Shift from Cost-Cutting to Value Creation:
Focus on total value optimisation, which includes innovation, agility, and supplier collaboration. Building strong supplier partnerships will drive resilience and help transform procurement from a cost centre into a value-creation function.
Build Resilience Through Risk Management:
Develop a proactive risk management framework with scenario planning for disruptions such as geopolitical issues or climate risks. Multi-sourcing strategies can also reduce dependency on single suppliers.
Prioritise Sustainability & ESG Compliance:
Align procurement with sustainability goals, particularly around Scope 3 emissions reduction. Procurement can support corporate sustainability and drive long-term growth.
Embrace Digital Transformation:
Leverage AI, machine learning, and automation to enhance procurement efficiency and decisionmaking, improving overall productivity.
Develop a Culture of Agile & Collaborative Teams:
Adopt an Agile Sourcing model and create agile teams that can quickly adapt to changes. Fostering collaboration across departments will drive innovation and improve procurement’s response to business demands.
By focusing on these areas, future leaders will be well-prepared to navigate the complexities of modern supply chains while delivering long-term value.
Supplier Relationships
What are the key factors you focus on to build strong relationships with suppliers?
Answer by Dirk Karl, Chief Procurement Officer at MTN
Building strong relationships with suppliers, like any successful partnership, is grounded in trust, transparency, and a shared vision. While collaboration and the idea of a win-win situation have become buzzwords, many still rely on the traditional “carrot and stick” approach with vendors. However, we now live in a world where partnerships are more critical than ever. This requires a clear understanding of each other’s needs and objectives.
Imagine a procurement function that engages with its vendors and says, “I have a business problem, and I’d like you to help solve it.” Together, the solution is crafted, with requirements defined and costs optimised along the way. This approach is highly innovative because it allows you to tailor a product or solution to your specific needs, rather than simply prescribing a solution upfront through an RFP. Doing so would otherwise limit a supplier’s ability to bring innovation to the table.
True collaboration—working together to co-create solutions—is what ultimately strengthens the relationships with your suppliers.
Managing Supplier Conflicts
How do you handle conflicts or issues that arise in supplier relationships?
Answer by Dirk Karl, Chief Procurement Officer at MTN
Data-driven discussions are key when managing conflicts. Like any relationship, emotions can sometimes cloud objectivity, so it’s crucial to separate the two. Most conflicts stem from a lack of clarity and alignment, and it’s important to remember that a supplier often communicates with multiple people within the organisation, each with different priorities and ways of working. Therefore, ensuring internal alignment is essential to avoid confusing suppliers with mixed messages.
When conflicts arise, it’s vital to take a structured, solution-oriented approach. The first step is to identify the root cause through open, transparent dialogue with the supplier. Using data to guide the conversation, you can break down the issue and leverage the tools at your disposal—such as contract frameworks, SLAs, KPIs, and escalation paths—to address the dispute fairly.
If the issue is performance-related, corrective action plans with clear timelines and accountability are put in place. Internal alignment on priorities and expectations is also crucial in these situations. The ultimate goal should always be to resolve conflicts while preserving the integrity of the relationship, ensuring any issues are addressed with a long-term focus, rather than relying on short-term fixes.
Measuring Supplier Performance
How do you measure the performance and success of your supplier partnerships?
Answer by Dirk Karl, Chief Procurement Officer at MTN
Performance measurement should be multifaceted. Traditionally, performance has been measured through data-driven metrics aligned with contractual agreements, where vendors are assessed based on their ability to meet SLAs. While these metrics remain important, I believe they should be considered the ‘minimum standards.’
Looking ahead, I think future KPIs should focus on more innovative and collaborative metrics. For example, design-to-cost projects run with suppliers can foster collaboration on product and service improvements, focusing on optimising features to enhance efficiency and drive cost reductions.
In my view, measuring suppliers based on innovation and their ability to contribute to collaborative projects is far more valuable than relying solely on traditional metrics such as on-time delivery or product rejection rates. These latter metrics should be moved into the ‘minimum entry-level’ category, ensuring that the real focus is on driving innovation and continuous improvement with suppliers.
Encouraging Supplier Innovation
How do you encourage suppliers to contribute to innovation and value creation?
Building on the earlier points about relationships and performance measurement, innovation thrives when it’s truly collaborative. Both the customer and supplier need to invest — ideally, both financially and in terms of time. We’ve seen the rise of innovation labs at customer sites and an increase in procurement-led initiatives like design-to-cost and cost modelling, which aim to streamline products and bring them to market at more cost-effective price points.
In my experience, suppliers are always eager to receive feedback on products and services to drive improvements. However, when both parties have “skin in the game” — meaning investment from both sides in terms of time and money — the collaboration becomes much more effective. This joint investment helps foster a deeper commitment to working together on solving challenges and creating new or improved solutions.
Answer by Dirk Karl, Chief Procurement Officer at MTN
Supplier Diversity and Inclusion
How do you approach supplier diversity and inclusion in your SRM strategy?
Answer by Dirk Karl, Chief Procurement Officer at MTN
Supplier diversity and inclusion is an area where creating a plan is relatively straightforward, but execution can be challenging. It’s crucial to adopt an output-based approach to supplier diversity, with a clear end goal in mind: to integrate and grow diverse suppliers. Building diversity into category strategies is essential, ensuring that objectives, targets, and goals are embedded within sourcing plans.
Once suppliers are onboarded, they often require varying levels of support, and a one-size-fits-all approach doesn’t always work. Some suppliers may need system support, a simplified onboarding process, technical mentorship, or specific capability-building programmes to help them succeed. Tailoring the support to the individual needs of diverse suppliers ensures that they can thrive within the supply chain ecosystem.
MTN Group’s Global Sourcing and Supply Chain (GSSC) drives procurement across Africa and the Middle East, focusing on innovation, sustainability, and ethical sourcing to support MTN’s digital transformation.
Andrew Savage Global Lead: Procurement Lead at MTN
Dirk Karl Chief Procurement Officer at MTN