An analysis of the supply chain management process in the KZN department of public works.

Abstract

Reforming public procurement has had the objective of making delivery of goods and services more effective and efficient, less expensive and capable of providing a better quality of service. These measures have not always been positively received by those mostly affected. The aim of this study was to determine the critical success factors underlying the efficiency and effectiveness of the Supply Chain Management processes that can provide competitive advantage in the procuring of goods & services and assist the Department to render an effective and efficient service delivery as well as ensure that the process complies with the requirements of the Constitution. At policy level, the dissertation seeks to provide a theoretical framework which will help in understanding the effect of supply chain variables in procuring goods & services, as well as the performance of the entire supply chain management processes. In order to obtain a management and officials perspective on the effectiveness of Supply Chain Management (SCM) processes in the Department, a dual approach was used, where qualitative and quantitative methods of data collection were used with a probability sample of 90 questionnaires distributed to Departmental officials and 50 interviews conducted with senior management with the aim of obtaining more insight information on Supply Chain Management processes in the Department. The study revealed that the Departments SCM policies are in line with the SCM Framework and other Regulatory documents, it further revealed that there are challenges in the implementation of SCM processes. Furthermore the study revealed that supply chain is affected by the quality of the relationship with suppliers and selection criteria. The comparative analysis of chapters that preceded this chapter was provided. Possible constraints were presented as findings. Recommendations that were provided include: the review of policies and processes to address the lead time and other challenges, performance management, supplier selection and support, implementation of electronic system in improvement processes and having the right human skill. Successful procurement management emanates from good planning, execution, monitoring and control processes. Although the department’s procurement function plays a prominent role in the procurement of goods and services, the success of the contract depends largely on the performance of the contractor and its subcontractors. Therefore, it is essential that the contract procured through supply chain management policy is properly monitored and enforced.