Exploring supply chain management practices within municipalities in the West Rand district

Intaher Marcus Ambe,Thabiso Maleka

doi:10.21511/ppm.14(3-3).2016.09

Intaher Marcus Ambe, Thabiso Maleka

Open Access

https://doi.org/10.21511/ppm.14(3-3).2016.09

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Abstract

This article explores supply chain management practices within selected municipalities in the West Rand district, Gauteng. An empirical research was conducted among supply chain practitioners in the municipalities based on the purposive sampling technique and the data were analyzed using descriptive statistics. The findings revealed that the municipalities have adopted and implemented supply chain management practices. However, supply chain management objectives are not always appropriately aligned with government policies, and the municipalities face serious supply chain issues such as leadership, lack of proper accountability and good governance. From the findings, it is evident that the lack of proper implementation of supply chain management in municipalities is the root cause of problems in service delivery in South Africa. It is recommended that municipal supply chain officials be empowered with supply chain skills for proper supply chain management execution. Keywords: supply chain, municipalities, practices, West Rand district. JEL Classification: M11

Highlights

Despite reform processes in the employment of supply chain management (SCM) as a strategic tool in the South African public sector, there are predicaments in SCM practices, especially in municipalities
This section of the article presents the findings with regard to SCM practices in the municipalities
The findings revealed that on average, more than two thirds of the participants perceived that their municipalities make use of bid registers, procurement based on integrated development plan (IDP), procurement plans, that purchases are budgeted for, that there is a specification of bid documents, and that there is an analysis of the market or industry before sending out the bid

Summary

Introduction

Despite reform processes in the employment of supply chain management (SCM) as a strategic tool in the South African public sector, there are predicaments in SCM practices, especially in municipalities. Intaher Marcus Ambe, Department of Entrepreneurship, Supply Chain, Transport, Logistics & Tourism, University of South Africa, South Africa. Thabiso Maleka, Department of Entrepreneurship, Supply Chain, Transport, Logistics & Tourism, University of South Africa, South Africa. According to the Council of Supply Chain Management Professionals (CSCMP, 2007), “Supply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. It includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third party service providers, and customers”. This focus on activities and relationships implies that logistics, marketing, purchasing/supply, and production/operations are involved in SCM

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