Highlights
Introduction
None-compliance to procurement processes and Supply Chain Management (SCM) related legislations and policies as well as tender irregularities forced the government to introduce reforms in the public procurement. This is because public officials stuck their fingers in the public coffers and colluded with the suppliers and this is due to lack of consequence management by government department, The Head of Standing Committee on Public Accounts Mr. Kimi Makwetu stated on audit report for financial year 2018/ 2019 that irregular expenditure increased due to non- consequence management from government department and public entities.
In terms of section 217 of the Constitution of the Republic of South Africa when government contracted for goods and service it must do so in a such way that is fair, equitable, transparent, competitive and cost-effective. Failure to regulate public sector Supply Chain Management in many departments affect service delivery negatively. The Auditor-General report financial year 2018/2019 indicates that the Limpopo Department of Education (LDoE) incurred about R98million irregular expenditure since 2010. This irregular expenditure is mostly from the implementing agents such as The Mvula Trust, IDT, DBSA and Department of Public Works and infrastructure for mispresentation of commitments and capitalisation of projects.
In Limpopo Province Supply Chain Management has become an issue of public responsiveness and has been subjected to reforms, rules regulations. According to Migosi, Ombuki, Ombuki and Erisa (2013:154) Public procurement refers to the acquisition of goods, services and works by procuring using public funds.
The Auditor-General report (2019) further assessed the conflict of interest of employee of Limpopo Department of Education (LDoE) and their close family member’s contacted business with the department. Uncompetitive or unfair procurement process, inadequate contract management and inadequate Supply Chain Management control were exercised.
Some of the challenges in the Limpopo Department of Education (LDoE) Supply Chain Management exercises the non-compliance of SCM procedures and processes, among others including shortage of skills, shortage of capacity in the execution and implementation of SCM.
The concept of Supply Chain Management has different dimensions and therefore different definition of the concepts that focus on different dimension. According to Van Weele (2014:429) define supply chain management as the management of all activities, information, knowledge and functional resources associated with the flow and transformation of goods and services up from raw material suppliers, component suppliers and other suppliers in such a way that the expectations of the end user of the company are met or surpassed.
The Council of Supply Chain Management Professionals (CSCMP) defines Supply Chain Management as the planning and management of all activities involved in sourcing and procurement conversion and all logistics management activities.
The Institute for Supply Chain Management (ISM) defines Supply Chain Management as the design and management of seamless value- added processes across organizational boundaries to meet the real needs of the end customer.
The Association for Operating Management (APICS) defines Supply Chain Management as the design, planning, execution, control and monitoring of supply chain activities with the objectives of creating value, building a competitive infrastructure, leveraging world wild logistics, synchronizing supply with demand and measuring performance globally.
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