Insight into supply chain management in a municipal context

Abstract

Supply chain management is strategic to the quest for service delivery excellence in South African municipalities. The supply chain journey in South African municipalities started in 2005 with reforms to introduce internationally accepted procurement best practices. The previous system failed the country due to deficiencies and malpractices resulting from the interpretation, implementation and governance of the preference procurement policy. Today (2016), supply chain management has become a talking point on which citizens are raising major concerns and it is perceived as being handled in a way that financially benefits few individuals. Laws and regulations governing municipal supply chain management are intentionally ignored or flouted by municipal officials resulting in corruption, fruitless, wasteful and unauthorized expenditure. In an effort to address these challenges, the National Treasury continuously provides guidance in terms of policy revision, clarity in the provisions of the supply chain management policy, as well as training to supply chain management officials. This article provides an insight into supply chain management practices in a municipal context in South Africa. It highlights the status, challenges and way forward for the implementation of supply chain management in a municipal environment. Keywords: insight, supply chain management, municipality, public procurement, South Africa. JEL Classification: M38