Developing a management framework for internal logistics in the Department of Education in Gauteng

Abstract

The objective of the study was to develop a management framework for internal logistics in the Department of Education in Gauteng. For the purpose of this study internal logistics was defined as the complete process of obtaining goods and services from the compiling and processing of requisitions to the payment of invoices and the record keeping of all transactions to achieve organisational objectives. Internal logistics entails purchase planning, specification development, supplier research, contract administration and quotations, ordering and inventory control. The management of internal logistics can enhance productivity and performance within the value chain, improving service delivery, the outcome of the audited financial statement and ultimately the optimal spending of the allocated budget per financial year. For three consecutive financial years (2006/2007, 2007/2008, 2008/2009) GDE received a qualified audited financial statement. For financial years 2009/2010 and 2010/2011 GDE succeeded to receive an unqualified audited financial statement. To maintain this achievement and ultimately receive a clean audit financial statement, it is necessary to evaluate all the business processes, specifically within supply chain management, contributing to the audit findings. Supply Chain Management (SCM) is in some way the completion of the circle of financial management. It is important for GDE to develop a uniform internal logistics framework that would enable them to also gain the maximum from its annual allocated budget. It is also critical that the internal logistics are attended to as soon as possible to have a positive input towards the audited financial statement. A literature study was done on the concepts of the value chain, supply chain management and the management of knowledge. A questionnaire was designed, based on the findings in the literature, and used to measure the efficiency of the internal logistics in the District offices. The state of the internal logistics at the District offices was assessed through survey questionnaires to extract the data. It became evident that certain gaps and problems exist in relation to internal logistics at the District offices and that knowledge management is related to these gaps and problems. Internal logistics has a link with the elements of supply chain management as investigated in the literature study. The elements of supply chain management can to be broken down into clear activities for the management of internal logistics. The key area of concern is that the internal logistics within SCM are not acknowledged and therefore not properly managed in the District offices. The result of this is that the allocated budget is not optimally utilised and also receives qualifications from the audited financial statement. A practical framework to manage internal logistics is proposed for the Department of Education to assist with the problems, and to bridge the gaps found after analysing the questionnaires. The findings of the empirical study were used as the basis of the framework. Finally, conclusions and recommendations are drawn and rendered in order to improve the logistics management of the Department of Education in Gauteng.