The effects of preferential procurement on supply chain performance in Gauteng government departments

Abstract

The aim of this study was to determine the effect of preferential procurement on supply chain performance in Gauteng government departments. The topic public procurement has gained a lot of attention in the previous two decades in both academia and government spheres. This emanates from the introduction of the Preferential Procurement Policy Framework Act No. 5 of 2000 (PPPFA), which was introduced with the intention of promoting the previously disadvantaged groups in the economy; however, the system has proved not to be as effective as was intended. The objective of the study was to identify the effects of preferential procurement on supply chain performance and to determine the influence of management levels on the implementation process. The findings of the study revealed that supply chain performance was indeed affected by the implementation approach across the various government departments, and that a gap still existed between policies and implementation and that most SCM officials had not fully grasped the implementation requirements of the PPPFA. Although challenges were noted in the implementation process, it can be concluded that preferential procurement was generally functioning well across the selected departments. It is recommended that the implementation criteria of the PPPFA are revisited to ensure that they are understood across all levels of management.