Supply chain management in the department of public works-Pietermaritzburg: challenges and prospects.
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Date
2018
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Abstract
The Public Finance Management Act (PFMA), Act (Act No.29 of 1999) places emphasis on the establishment and implementation of a supply chain management (SCM) unit as well as the development of SCM policy framework, processes and procedure by government departments. Hence, the SCM framework that is congruent with the Constitutional requirements in line with the PFMA was developed to transform and integrate the outdated practice of procuring goods and services. SCM is a mechanism for service delivery in South Africa’s public institution through policies and procedures intended to address the effectiveness, efficiency, economic resources utilisation regarding demand management, acquisition of goods and services, management of contract, and asset management in order to enhance accountability. Furthermore, the classic view of organizational theory of management and public administration envisioned the “POSDCORB” for enhancing the efficiency of the processes of management.
However, in spite of these developments, proper SCM execution seems to be problematic in South African government institutions. Thus, this study aimed to investigate the root causes of the lack of compliance with SCM rules and procedures including policies by the Department of Public Works-Pietermaritzburg (DPW-PMB) and the role of the principles of organisational theory in enhancing the efficiency of SCM processes. The study utilized the qualitative research design with a case study of the DPW-PMB, applying interview method and direct observation to collect relevant data through purposive sampling with a target population of 16 participants. The findings of the study revealed that efficient execution of SCM was impeded by various factors including shortage of skilled personnel, capacity constraints, poor planning, fraud and corruption, political interference, failure to comply with policies and procedures and lack of training.
The majority of SCM challenges were mostly associated with the lack of integration of the principles of the organisational theory with SCM strategies to enhance efficiency. Recommendations of the study entailed an inclusive approach in the strategic planning sessions need for strengthening internal controls of SCM to mitigate the risk of fraud and abuse of SCM system, reinforcement of reporting structures to improve staff compliance, and ensuring growth and development of both internal and external role-players through continuous training programs. SCM across the government spectrum requires the integrated management approach that encompasses various actors, role-players and responsible stakeholders. Lastly, the study proposes the integration of the principles of organisational theory (POSDCORB) with public sector strategies to enhance the efficiency of SCM system.
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Masters Degree. University of KwaZulu-Natal, Durban.