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Challenges facing the supply chain management system of Dr Ruth Segomotsi Mompati District Municipality
Motuba, Lesedi Lucrecia
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A case study was undertaken in the Bophirima District Municipalities, North West Province, Republic of South Africa. Stratified sampling was utilised through which (100) hundred respondents were identified within the municipality. Both primary and secondary data collection method was employed to collect empirical data. The findings of the study revealed that (i) implementation of Supply Chain Management was far from satisfactory (ii) the municipality is faced with problems of lack of skills and capacity in the implementation and executive of Supply Chain Management. Furthermore non-compliance to Supply Chain Management regulations was highlighted. The study concludes by recommending (i) greater sharing of information among those assigned with the implementation of the Supply Chain Management the utilisation of technology (ii) establishment of a structure for the implementation of the Supply Chain Management, and in particular structures for public-private partnerships in service delivery, (iii) training of municipal employees assigned with the implementation of Supply Chain Management and (iv) stricter application of the public procurement and the Municipal Finance Management Acts. For further research it is recommended that a replication of the research be done in other municipalities to obtain the situation regarding the implementation of Supply Chain Management practices. The regulatory framework of the South African government has ensured that all significant changes and improvements in the supply chain practices of government are well maintained, in an effort to encourage efficiency and effectiveness in government supply chain management processes. Tighter controls have been placed in government procurement sector to ensure value for money. However, the challenge still remains with changing how people in government supply chain management receive these efforts of government, and how they accept this shift in the way they do things. According to the National Treasury of South Africa, Supply Chain Management is one critical areas which will assist in ensuring that government financial reforms are achieved. Therefore, for this reason, the national treasury has issued supply chain management regulations in line with the Public Finance Management Act (PFMA) as well as in line with the Municipal Financial Management Act (MFMA) to guide and add to the requirements of the legal framework. The regulations are phased in over a period of time, giving municipalities the opportunity to draft, adopt, and implement their SCM policies. No guide or model therefore yet exists that can be adapted to suit Dr Ruth Segomotsi Mompati District Municipality in its quest to implement all the components of SCM in order to improve service delivery. Supply chain is not a very old concept in local government and in government in general. The concept of supply chain places a lot of pressure on municipalities by requesting that supply chain at municipalities be done transparently and without affecting service delivery negatively. The problem comes from the service providers and the general public, who expect a lot from government. The public has also displayed interest around government procurement and tendering in municipalities, as they are stakeholders and users of the services provided by these municipalities. It is clear that, some municipalities are taking these issues seriously at various stages of their processes, other municipalities are struggling to make progress in terms of making their procurement and supply-chain processes sealed and free from illegal activities. This study aims at investigating whether the supply chain management practices in the Dr Ruth Segomotsi Mompati District Municipality, North West province of South Africa, are in line with the regulatory framework using outlined research methodology. Supply chain management was brought in the South African public sector to reduce insufficiencies relating to governance, justification and execution of the public sector procurement guidelines.