Supply Chain: an Enabler to Service Delivery in Local Government

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Supply Chain Management as an enabler of Service Delivery in Local Government

1.1INTRODUCTION

Post-apartheid South Africa faces a major challenge in ensuring that local government, as the third tier of government closest to the people, provides optimal service delivery to the people of different culture, race and sex. The government is intent to modernize the management of public sector, to make it more people-friendly and sensitive to meeting the needs of the communities it serves. The provision of service delivery through effective and efficient supply chain processes is crucial. Section 217 of the Constitution of the Republic of South Africa requires an organ of state to contract for goods or services in accordance with a system which is fair, equitable, transparent, competitive and cost effective. Most recently residents have embark on mass action to underline their demand for service from the municipalities. The fact that Supply Chain Management Regulations issued by National Treasury are so new to local government that their relevance in supporting the strategic objectives required to deliver service are not practiced. As a result supply chain management has become increasingly important tool to enhance service delivery in local government sector. Supply chain management is viewed as crucial in enhancing service delivery in that it will ensure that service will be delivered at the correct time, at the right price, location, quality and quantity that will satisfy the needs of the community. Therefore the objective is to effectively utilize the provisions of supply chain to enhance service delivery in local government. Most of municipalities’ failure to provide optimal service is as result of not incorporating supply chain management activities in their planning and delivering stages. Supply chain management is concerned as efforts to reduce inefficiencies and solve the problem of poor service delivery.

1.2PROBLEM STATEMENT

Supply chain management has been identified and research in many industries including healthcare, information technology, retailing sector to name just the few. However, no research has been conducted on enhancing service delivery in local government through the application of supply chain management tools. From local newspapers as well as news bulletins appearing on national television, it is clear that demand by communities for service deliver from municipalities have escalated. The question asked is “What strategy is in place to ensure that service is delivered on time, at the right price, location, quality and quantity to meet the needs of the community”? The impact of not delivering service in a manner which is not in accordance with the Constitution of the Republic of South Africa is that people embark on mass actions, toy-toying, vandalising public places, etc. The objective of this research is to develop a supply chain management system which is effective and efficient to achieve optimal service delivery and also reach set goals aligned with the Constitution of the Republic of South Africa. The real meaning of supply chain will be defined. The research specifically focuses on the local government sector, particularly on district and its local municipalities within Sedibeng region.

1.3RESEARCH OBJECTIVES

1.3.1Primary objective

The primary objective of this research is to develop a system of supply chain management that will ensure effective and efficient delivery of quality service to the communities.

1.3.2Secondary objectives

The specific objectives of this research are:
• To ensure effective application of elements of supply chain management as reflected in the Local Government: Municipal Finance Management Act, 2003 Municipal Supply Chain Management Regulations • To develop, support and promote historically disadvantaged individual (HDI), black economic empowerment (BEE) and small, medium and micro enterprises (SMME’s). • To highlight the importance of...
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