Analysis of the impact of supply chain management challenges on supply chain management performance at the Department of Social Development in Gauteng Province.

Abstract

It is imperative that the entire public sector, including the Department of Social Development (DSD), implements a sustainable Supply Chain Management system (SCM) that benefits the current population and future generations. However, both the literature and practical experience show that the public sector supply chain in South Africa is not as effective as it should be. The public sector of South Africa is facing serious challenges in terms of their SCM and the DSD is no exception. This is a serious issue in this Department because it leads to failure in the provisioning of social services, social security, grants and other benefits provided to the needy. The aim of the study is to analyse the impact of SCM challenges on the performance of the public sector from the perspectives of employees in the DSD in Gauteng Province, South Africa. A survey questionnaire was used to collect data from seventy (70) employees of the DSD Procurement Department ranging from senior management staff to the floor workers in the Department. Exploratory design was used for the study which provided the researcher with an opportunity to collect data from the respondents. The study employed a quantitative research technique to allow for and good representation of the large number of respondents involved in the study and for the researcher to establish a causal connection between the variables. A questionnaire was administered to the seventy staff members of the Department based on probability sampling and fifty (50) questionnaire were returned for analysis, and the resulting data were analysed using descriptive statistics, and the modal/majority scores facilitated the findings of the study. It was found that the major challenges impacting on the Department’s performance include: non-compliance with the policies and regulations; corruption; fraud; lack of accountability; and lack of measures for monitoring and evaluation. The study recommends: training and development to understand SCM dynamism; zero tolerance with regard to corruption; decentralisation of the SCM system; improvement of key performance indicators; and strict compliance to the rules and policies of SCM procurement in the organisation.