Keywordschallenges knowledge procurement planning sharing Public Finance Management Act public sector skills and competency information Supply Chain Management
JEL Classification D80, D81, H83
At the forefront, Public Sector Supply Chain Management (SCM) is one of the critical functions in promoting service delivery through the timeous acquisition of goods and/or services. The Public Finance Management Act, Act No. 1 of 1999, devolves the authority to Accounting officers within Governmental Departments to establish and execute an integrated and co-ordinated supply chain management function. This function should support and ensure that organisational objectives are executed through the fulfillment of its timeous services to the citizens of the country.
The study emanates from the 2008/2009 and 2009/2010 financial year wherein the Department of Justice and Constitutional Development (DoJ and CD) audit outcomes reported as the worse audit finding as these outcomes highlighted genuine concern about degradation of effective financial and administrative management within the Department. An additional focal point in this specific study is that in the recent past, various media publications triggered the attention within the Public domain on the lack of good governance principles and SCM practices employed by the Government in reference to the awarding of bids. Majority of the department’s managers’ experienced challenges in procuring goods and/or services. These challenges amongst others included the lack of interpretation of the SCM policy, lack of SCM co-operation, undue delays in the SCM process, no proper procurement planning, lack of consolidation of initiatives, inability to employ appropriate practices and strategies (Auditor General, 2017).
Recent research shows that the private sector has made significant strides in the acceptance of supply chain management practices and gaining popularity thereof. The Public Sector Supply Chain has redirected its attention to the Private Sector for supply chain management strategy and practices. It is the suggestion of several authors that the Private Sector SCM practices could be employed within the domain of the Public Sector SCM (Heller, 2013). During the 2016/2017 financial year audit, the Auditor General reported in its final management letter that there was certainly a lack of proper procurement planning and a consolidation of procurement initiatives. The research objectives are as follows:
- To determine the nature and extent to which the SCM policy, procedures and practices are implemented in the Department of Justice and Constitutional Development;
- To recommend appropriate SCM practices that can be adopted and implemented so as to enhance the value chain and improve service delivery.
2. Literature Review
The Council of Supply Chain Management Professionals (CSCMP, 2009) defines SCM as the systematic formation and arrangements of all functions which includes activities such as strategic sourcing, acquisition, managing logistics through the systemisation and joint efforts with end-user.Private Sector SCM can be described as the incorporation of various operational activities for example demands estimation, merchandising, acquisition management, logistics management, research and development, sharing of information, information communication systems and client support (Larson, 2009). (Ambe and Badenhorst-Weiss, 2011a,b,c) vindicates (Boateng, 2009) in that the Public Sector SCM is meant to support Government Departments in translating strategic outcomes and operational requirements to deliver its mandate of services to the citizens of this country. Although there might be slight variances in the terminology and interpretation of SCM as pronounced by several authors, fundamentally all allude to the requirements for collaboration, communication, co-ordination and integration amongst the different stakeholders in an organisation that supports and adds value to the credibility of the SCM value chain.
Other scholars are advocating for integration and collaboration of partners in SCM to improve supply chain performance and use as a basis for competing on the efficiency and effectiveness of supply chains (Huo, Wang and Zhao, 2014; Cabral, Grilo and Cruz-Machado, 2012). Improved SCM can be achieved through a focus on lean, agility and resilience coined as the term leagile (APICS 2013 and Scholten, Scott and Fynes, 2014). Holistically a SC is leagile is there is a capability to be manage complexity and disruption in the supply and demand (Scholten, Scott and Fynes 2014) and environments characterized by highly level of uncertainty require an agility capability (Hallavo, 2015).
2.2. Supply Chain Models and Practices
Supply chains need to be managed appropriately through the appropriate models and practices that will ensure superior supply chain performance to attain a competitive edge.
Supply Chain Management initiatives include amongst others, procurement planning, strategic supplier partnership, information sharing, skills and competency of SCM practitioners and continuous improvement of process flow. These SCM practices are paramount and can be adapted within an organisation that seeks to improve the responsiveness of Supply Chain Management. Organisations are starting to recognise and implement supply chain practices that would culminate in the sharing of the risks, rewards and integrating the value chain process that will ensure improvement of its performance (Ibrahim and Hamid, 2014). Abbasi and Nilsson (2012) argued that a major challenge to successful SCM practices is that the decisions that are taken is characterized by uncertainty, complexity, cost, mindset and cultural change
Earlier SCM studies focused mainly on operations management theory to explain supply chain management. Some scholars proposed that multiple organizational theories should be used to explain complex behaviours in SCM and more recent research have begun to use multiple organizational theories to interpret and analyse research findings (Hartmann and Moeller, 2014; Vanpoucke, Vereecke and Boyer, 2014; Vanpoucke, Vereecke and Wetzels, 2014).
Sukatia, Hamida, Baharuna and Yusoffa, (2012) proposed three different types of supply chains, namely, lean, agile and hybrid. A second contribution made by Sukatia et al (2012) was to a tool to assess supply chain processes and practices.
2.2.1. Knowledge, Skills, and Competency of SCM Practitioners
Boateng (2009) cites that service delivery challenges at the various spheres of Government is attributed to the inadequacy of strategically understanding the additive insights such as expertise, information sharing, demand planning, strategic sourcing initiatives and customer satisfaction that is inherent in attainable value chain for the betterment of the citizens. Heyns and Luke (2012) propose that there is a severe skills shortage in South Africa that will compromise and negatively impact on the competitiveness of South African supply chains.
Heyns and Luke (2012) provided as assessment of the skills for supply chain management in South Africa which is aligned to international studies. The six core skill categories that were identified is general management, logistic awareness, general management, behaviourial/interpersonal, and logistical analytical skills. With the changes affecting the SCM landscape other skills are also mooted to be essential are strategic thinking, cross functional collaboration, creative thinking, teamwork and effective communication is needed to manage the complexities of SCM environments. As SCM evolves other skills will become important like leadership, customer centricity, complex problem solving, change management, knowledge of the industry and business improvement. Heyns at al (2012) argued that ethics was identified to become a critical competency within the South Africa environment. The same study by Heyn et al (2012) identified that more customized training and continuous development programmes needs to be developed to empower employees that perform supply chain positions.
According to Ambe and Badenhorst-Weiss (2012), the appropriateness of a SCM structure, capacity and a proficient SCM team is pivotal to the execution of SCM functions within the value chain. The South African public procurement is impugned by the paucity of SCM skills and capacity. This has been a major impediment in ensuring proficiency and realisation of a prowess public procurement. Whilst the Public Sector SCM may have officials that possess exemplary characteristics, proficiency appraisement signifies a major disjuncture in the knowledge and skills of SCM officials. Despite numerous workshops conducted by National Treasury, there is the deprivation of sufficient knowledge for the adequate implementation of SCM and the associated SCM practices (National Treasury, 2015).
2.2.2. Information Sharing
For supply chain to be efficient and effective requires there is team work, cooperation, collaboration and sharing of information with partners across the value chain (Pienaar and Vogt 2012). Hollmann, Scavarda and Thomé (2015) argue that collaboration fosters agility, responsiveness and reduction in the levels of inventory. CPFR is defined as an approach to augment supply chain integration by supporting and assisting joint practices across all partners in developing plans, forecasting demand, scheduling production, and replenishment plans (Wisner, Tan and Leong, 2016).
Information sharing entails the communication of vital information amongst key role-players within and external to the organisation (Ibrahim and Hamid, 2014). Christiansen, (2016) agreed that previous supply chain management trends can be used to inform operational, tactical and strategic decision making which regards to supply chain and further enhance supply chain effectiveness and efficiency.
Involving suppliers at the inception of the value chain through information sharing can benefit organisations in understanding the market, improving forecasting, reducing costs, and determining lead times. The determination and eradication of the bottlenecks is greatly enhanced through the sharing of timeous and accurate information in a supply chain thereby augmenting the quality of customer requirement (Lotfi, Mukhtar, Sahran and Zadeh, 2013). Further, the involvement of strategic stakeholders through the sharing of information can improve decision making and efficiency of the value chain which mitigates any potential delays in the value chain to timeously fulfill service delivery obligations (Singh, 2013). The sharing of quality, accurate and timeous SCM information assist in procurement planning and reduces the acquisition cost of goods and/or services, the ordering cycle through the strategic implementation of various contracts (Human, 2016).
The negative effects of bullwhipping within a SCM value chain can be avoided through the sharing of information with strategic partners thus strengthen the relationship value chain (Simchi-Levi, Kaminsky and Simchi-Levi, 2015).
2.3. The Need for Effective Procurement Planning
The capabilities of an organisation to fulfill its internal clients’ needs is greatly influenced by proficient procurement planning that seeks to attain cost efficiency gains, enhanced quality, appropriate scheduling and delivery of products and/or services (Willey and Njeru, 2014).
Brahim, Abada, and Muhindo, (2014) postulated that preparation of a consolidated organisational annual procurement plan and the timeous execution thereof will assist an organisation to recognise any potential challenges and formulate appropriate procurement strategy to fulfill internal client’s operational commitments.
Human, (2016), postulated that government departments are obligated to implement the annual performance plan and hence is dependent on the timeous acquisition of goods and/or services. According to Gordhan, (2016) the fundamental importance of procurement planning would allow departments to leverage on its procurement spending by attracting substantive discounts; leveraging on government buying power by ensuring that the reasonable prices are obtained and valued discounts by acquiring appropriate quantities (Brown, 2016)
2.4. Strategic Sourcing
Organisations can achieve cost realisations by aggregating demands through the categorisation of low cost items. This compels organisations to drive their cost down due to volumetric and manage its procurement expenditure in relations to achieving its strategic priorities. Strategic sourcing entails the analysis of organisational needs for products and services by ensuring that requirements are optimized through reduced costs, maximizing on the organisations purchasing efficiency and decision making to give effect to strategic outcomes of an organisation (Shields, 2016). Government can exercise and enhance its purchasing power through the consolidation of procurement initiatives hence acquiring products and services at reduced cost (Brahim, Abada, and Muhindo, 2014).
By adopting the strategic sourcing model, strategic categories of commodities can be well managed by specialised SCM teams that would strive to establish key collaborative and strategic relationships with suppliers (Ibrahim and Hamid, 2014). With the implementation of collaborative procurement and skilling of SCM officials, strategic sourcing can be easily attained thus ensuring economies of scales, cost savings and enhanced efficiency in the value chain (Ibrahim and Hamid, 2014).
3.1. Research design and Strategy
The research design selected will assist the researcher to achieve the objectives of the study that logically focuses on the research Mouton, (2011). A quantitative descriptive survey was utilised to investigate the challenges of the Supply Chain Management practices impeding service delivery within the Department of Justice and Constitutional Development (DoJ and CD), which is to provide an opinion of the respondents regarding the facts or situation of the study (Grove, Burns and Gray, 2016). According to Saunders, Lewis and Thornhill (2016), the intent of a descriptive research is to solicit a precise framework of the situations and events. The utilisation of the survey strategy can be utilised to determine potential relationships between variables, thus producing normative or prescriptive models of these causal relationships (Saunders et al.,2016).
3.2. Target Population
The target population is four hundred (400) employees within the Department of Justice and Constitutional Development that work with Supply Chain Management. The sample pool consisted of one hundred (196) employees that were surveyed by means of a questionnaire which was aimed at identifying supply chain management practices impeding service delivery within the Department of Justice and Constitutional Development (DoJ and CD). Eligibility for participation in the quantitative survey was employees from the various Responsibilities, Regional Finance Directors, supply chain management officials’ and Responsibility Managers within the Department.
According to Saunders et al., (2016); Struwig and Stead, (2013) the approach of gathering information from a sample is more feasible and precise as opposed to acquiring the exact information from the entire population. Sampling is a technique of choosing and examining a segment of the population to assume generalisations of the entire population for consideration in the actual inclusion in the study. Therefore, the use of probability sampling methods is more acclaimed as opposed to the use of non-probability methods (Saunders et al., 2016). Taherdoost (2017) proposes guidelines for determining the sample size was used to determine the sample for the given combinations of precision, confidence level of 95%, and a margin error of 5% and the population percentage or variability of 50%
3.3. Sampling Strategy
Simple random sampling will be appropriate within a wide geographical spread if alternate data collection tools such as web or postal questionnaires are utilised as the primary collection method other than face to face contact which is costly (Saunders et al., 2016). The total population consisted of (N=400), whilst the total questionnaires distributed (N=130). According to Saunders et al., (2016), the sampling frame required for the simple random sample technique is accurate and easily accessible. Furthermore, the size of the sample put forward by Saunders et al., (2016), is better with over a few hundred. The geographical area to which the simple random sampling is suited is concentrated if face to face contact required, otherwise does not matter.
3.4. The Research Instrument
A structured close-ended questionnaire as a primary data or measuring instrument was instrumental in the gathering of the required original information for the specific intent of this quantitative research (Saunders et al., 2016; Welman, Kruger and Mitchell, 2013). The questionnaire was constructed and aligned to research objective and the literature review set out in this study. Pilot testing was done with three research participants and refined to address ambiguity and clarity of the questions. According to Creswell, (2014) the purpose of a questionnaire is to produce numerical explanations of attitudes, tendencies of specific views of the larger population by examining a sample of the population in which the researcher will attempt to construct generalizations or outcomes.
3.4.1. Questionnaire Construction
The questionnaire has been designed in English after the exploration of the research objective and an in-depth literature review wherein certain aspect have been incorporated from the literature review. Thirty-two (32) questions were formulated that probes into the challenges of the supply chain management practices impeding service delivery within the Department of Justice and Constitutional Development (DoJ and CD). The administration of a questionnaire serves as an advantage in that it bestows confidence and allows for voluntary participation which is designed to arouse the interest of the respondent. The participants responded to the questionnaire with confidence as it gave assurance of confidentiality whilst the participant remains anonymous (Leedy and Ormrod, 2014). The questions have been structured in an unambiguous manner which made it comprehensible for the respondents to response too. All the identified questions were measured using a 5-point Likert-type scale that was used in order to evaluation and to measure these variables (Wegner, 2012).
3.5. Data Analysis
The analysis of data involved the collation of data in a methodological manner which sought to bring interpretation to the data collected. (McMillan and Schumacher, 2014; Saunders et al., 2016). In the collection of the primary data, the questionnaires were considered and analysed to determine the SCM practices impeding service delivery. The Statistical Package for Social Sciences (SPSS) version 24 developed by IBM was the software package used to analyse the data. Descriptive analysis entails the formulation of graphs, frequencies and the analysis of central tendencies (Wilson, 2010). Descriptive statistics was utilised in this study for the data analysis of the respondents and the summarization thereof, whilst the variables will be measured through statistical analysis.
Reliability alludes to the degree by which the test scores are authentic, predictability, dependability and consistent (Fowler, 2009). It therefore culminates to the degree to which the statistical analyses of the acquired data are more consistent than accurate. Cronbach’s Alpha was used to gauge the reliability of each section relating to a research question. According to Manerikar and Manerikar, (2015) some professionals as a rule of thumb, require a reliability of 0.70 or higher (obtained on a substantial sample) before they will use an instrument. Saunders et al., (2016) stated that values of 0.7 or above indicate that the questions combined in the scale are measuring the same thing the reliability measures for each section are as follows:
Table 1. Reliability measures
|Section||Cronbach’s Alpha||No of Items||Result|
|Scale: Overall||0.826||32||Instrument is reliable, Cronbach’s Alpha > 0.7 (α=0.826, N = 32)|
|Scale: Process||0.688||10||Section is unreliable, Cronbach’s Alpha < 0.7 (α=0.688, N = 10)|
|Scale: Challenges||0.656||11||Section is unreliable, Cronbach’s Alpha < 0.7 (α=0.656, N = 11)|
|Scale: Service Delivery||0.757||11||Section is reliable, Cronbach’s Alpha > 0.7 (α=0.757, N = 11)|
In executing the quantitative research, the researcher focused on a weighted numeric data set, wherein the aforementioned was converted into concluding statements which will address the research questions and would be substantiated through the application statistics against the structured questionnaire and the quantitative statistical analysis (Struwig and Stead, 2013). The validity of the information is high as the information is based on the application statistics against the structured questionnaire and the quantitative statistical analysis. The results are generalised from sample to population (Collis and Hussey, 2009).
To determine the validity and adequacy of the research instrument, face and construct validity were executed. Face validity of this study was performed through the pilot assessment of the questionnaire amongst ten (10) departmental officials. These officials serve within the coal face of service delivery and have Public Sector SCM knowledge and understanding. Face validity ensured the attainment of their insights into the intent of the study and the questionnaire. The pilot study ensured validity as minimal amendments were made to the research instrument.
4. Results and Discussion
This section of the article presents a discussion on the results. The analysis of the results reveal that there are several challenges of the supply chain management practices impeding service delivery within DoJ and CD.
4.1.1 Fully capacitated and competent SCM Team to fully perform all aspects of SCM that add value to your unit’s business operations
Table 2. Sharing and exchanging information
|SCM officials share and exchange information regarding policies, procedures, and assisting end users with the execution of procurement initiatives||4.00||-1.534||5.713|
Seventy-six percent of respondents disagreed that the department had a fully capacitated and fully competent team that performed all aspects of SCM that added value to their respective units at all, 10% strongly disagreed with this statement whilst 9 % agreed and 5 % were unaware (n = 100). According to Ambe and Badenhorst-Weiss (2012), the appropriateness of a SCM structure, capacity and a proficient SCM team is pivotal to the execution of SCM functions within the value chain. The median measure was 4.00, with a negative skewness of -1,394 indicating skewness to the right of the mean. The kurtosis was 2.498, indicating a flatter than normal distribution with a wider peak. These results indicate that that most respondents reported that they disagreed with the statement and felt that the department lacks a competent and capacitated SCM team to perform all aspects of SCM in their respective business units. The Kruskal-Wallis test indicated there is a significant difference in respondent’s highest qualification, and the department having a fully capacitated and competent SCM Team to fully perform all aspects of SCM that add value to their unit’s business operations (H (3) = 7.832, p = 0.050). The data reveals a negative trend in the perception that the department’s SCM team lacks the appropriate skills and competencies required to fulfil its mandate in the department. The consequential outcomes of these perceptions paint an unfavourable narrative that in essence translates to the procedures, practices and policies not being adhered to in the SCM environment. The data measured respondent’s acuity towards the overall extent in which capacitation and competency of SCM staff in their respective business units were gauged. The data in this regard too revealed a worrying trend of negativity or lack of trust in the SCM team that is tasked with adding value to the various directorates and sub directorates.
The data revealed that majority of the respondents disagreed that the department has a fully capacitated and competent SCM Team to fully perform all the aspects of SCM that added value to their respective unit’s business operations. This can be attributed to their exposure to Supply Chain Management, which hasn’t been fully capacitated and having the required competency to support operational aspects at the coalface of service delivery. For example, an interrupted functioning of the Courts has a major critical impact, to access the Justice Services to all. Disruptions in terms of unforeseen or emergency maintenance in a Court or the Prisons’ Cells cannot be overlooked, such as burst leak pipes, leaking toilet or dysfunctional toilets to both the Public and the Prisoners alike.
4.1.2. SCM officials adequately share and exchange information regarding policies, procedures, and assisting end users with the execution of procurement initiatives
Seventy-one percent of respondents disagreed that SCM officials adequately share and exchange information regarding policies, procedures and assisting end users with the execution of procurement initiatives, 22% strongly disagreed with this statement whilst 3% was calculated at the agree and don’t know scale, 1 % strongly disagreed (n = 100). The sharing of accurate and quality information within the SCM value chain impacts on the overall supply chain performance from a service delivery and a total cost effectiveness perspective (Baihaqi and Sohal, 2013). In essence, the sharing of quality, accurate and timeous SCM information assist in procurement planning and reduces the acquisition cost of goods and/or services, the ordering cycle through the strategic implementation of various contracts (Human, 2016). The timely, accuracy, reliability and relevance of information sharing is critical for an organisation to make correct decisions and take appropriate actions based on a portfolio of information rather than the propagation of distorted information within the SCM value chain which could be amplified and result in potential bullwhipping effect (Simchi-Levi, Kaminsky and Simchi-Levi, 2015). The median measure was 4.00, with a negative skewness of -1,534 indicating skewness to the right of the mean. The kurtosis was 5.713, indicating a leptokurtic distribution, inherent of a distribution with high probability for extreme values. These results indicate that most respondents reported that they disagreed with the statement. The adequate sharing of information such as policies and procedures was deemed as the appropriate tool in the data collection instrument to gauge the levels of compliance in this regard. The data revealed that the sharing of information was severely constrained or non-existent. This attribute as indicated by (Simchi-Levi, Kaminsky and Simchi-Levi, 2015) is critical for the organisation to effect proactive decision making. The public sector supply chain management environment is a key stakeholder in the realisation of governments overall objectives. Deficiencies revealed through the extrapolation of the data indicate an unfavourable progression towards silo management that negatively affects the organisation as a whole.
The significant responses from the perception of the respondents which cuts across both gender, revealed a view that SCM officials do not adequately share and exchange information regarding policies, procedures, and assisting end users with the execution of procurement initiatives. The analysis reveals that business operations are negatively affected by the lack of information sharing from Supply Chain Management regarding contract management i.e. leasing of office equipment which attributes to potential irregular expenditure, monitoring and evaluation of supplier performance
The sharing of accurate and quality information within the SCM value chain impacts the overall supply chain performance from a service delivery and a total cost effectiveness perspective (Baihaqi and Sohal, 2013). In essence, the sharing of quality, accurate and timeous SCM information assist in procurement planning and reduces the acquisition cost of goods and/or services, the ordering cycle through the strategic implementation of various contracts (Human, 2016).
4.2 Under-spending on procurement initiatives is a direct result of the inability of SCM to develop, implement and monitor procurement plans
Seventy-six percent of respondents believed that under-spending on procurement initiatives is a direct result of the inability of SCM to develop, implement and monitor procurement plans 11% strongly agreed with this statement, 7% of the respondents answered as not knowing, whilst 4% disagree and 2% strongly disagreeing (n = 100). This finding reinforces Boateng’s (2009) view that service delivery challenges at the various spheres of Government is attributed to the inadequacy of strategically understanding the additive insights such as expertise, information sharing, demand planning, strategic sourcing initiatives and customer satisfaction that is inherit in attainable value chain for the betterment of the citizens. This is attributed to a lack of knowledge, skills and competency in SCM. The data reveals that there are significant areas that need to be addressed. According Willey and Njeru, (2014) stated that procurement planning is a crucial activity which culminates into an array of procurement initiatives. Procurement planning serves as an epicenter that ignites the process of acquisition of products and services.
Table 3. procurement initiatives
|Underspending on procurement initiatives is a direct result of the inability of SCM to develop, implement and monitor procurement||2.00||1.857||5.573|
The median measured at 2.00, with skewness of 1.857 which indicates a right skewed distribution with most values concentrated to the left of the mean. The kurtosis was 5.5.573, indicating a leptokurtic distribution, inherent of a distribution with high probability for extreme values. These results indicate that that most respondents reported that they agreed with the statement. The researcher through individual insight and extensive experience in the SCM environment sought to identify challenges that were negatively impeding service delivery, as part of this exploratory process, the following statement was posited to the respondents: Under-spending on procurement initiatives is a direct result of the inability of SCM to develop, implement and monitor procurement plans. The public sector context is of relevance in gaining an understanding of the challenges in the SCM environment. Under spending is a phenomenon that is not unique to the public sector but it is prominence in this sector is often raised in the national debate on weak budgetary planning in public sector departments. The data revealed an overwhelming majority in agreement with the statement that places SCM at the centre of the inability to develop implement and monitor procurement plans. This causal linkage highlighted by the data collection instrument lays bare one of the critical areas needed to be addressed by the executive as well as senior management. Under spending on procurement initiatives within the DoJ and CD such as the procurement and supply of services to support the day to day management of the local magistrate courts can result in substantial delays in the efficiency and effectiveness of the criminal justice system thus creating unnecessary and unwarranted backlogs that can be prevented through the ability of SCM to develop and monitor procurement plans.
The analysis of the information revealed that respondents who worked for government over ten years agreed with the statement that the under-spending on procurement initiatives is a direct result of the inability of SCM to develop, implement and monitor procurement planning. Procurement planning serves as an epicenter that ignites the process of acquisition of products and services. The experience of the internal clients reveals that there is a common consensus amongst those between 6 to 10 years as well as over 10 years’ experience that the SCM does not develop, implement and monitor procurement plans for all procurement initiatives which results in under spending.
5. Conclusion and Recommendations
Recommendations will be discussed under two distinctive categories namely the employment of SCM practices to improve the service delivery within the Department of Justice and Constitutional Development and future research suggestions. To improve service delivery within the Department of Justice and Constitutional Development (DoJ and CD), the following Supply Chain Management Practices are recommended:
5.1.1 Human Resource Capacity and Skills
- HRM needs to conduct a skills audit to identify strengths and weaknesses of the SCM team, and engage with the Chief Financial Officer (CFO) on a programme of action to address critical skills and competency that would support the implementation of SCM best practices.
- Current skills development initiatives do not include demand specific training for SCM i.e. procurement planning, strategic sourcing, contract management and supplier performance. It is proposed that the CFO Training and Standardisation be relocated under the auspices of the Justice College wherein the latter embarks upon the development and accreditation of its proposed, specific SCM learning programmes through the National Skills Framework.
- Restructure SCM (revised organogram, re-assign officials, review roles and responsibilities, re-assess functions and flow of work).
- Introduce change management at SCM for the team to understand the importance and role of the SCM officials.
5.1.2 SCM Strategy
- Re-engineer the SCM structure and functions at National and Regional levels in order to align to the departments requirements.
- Identify key performance areas and develop an implementation SCM strategy inclusive of Key Performance Areas (KPA), performance measures, milestones, and responsible officials, amongst others.
- The Establishment of a SCM forum per Region that strategically engages key stakeholders including Area Court Managers.
- Establish service standards within SCM and inform all of the standards against which performance will be measured (e.g. turn-around times and level of services, amongst others).
5.1.3 Procurement Planning
- Establishment of a cross functional team which includes amongst others, Strategy Unit, Budgets, SCM to consider procurement requirements of the respective business units.
- Development of a detailed procurement plan and procedure document that proactively addresses the department’s requirements.
- The 7-Step Strategic Sourcing Process in Figure 3 to be considered as a viable approach to support the existing Public Sector SCM model in respect to procurement planning and strategic sourcing.
Procurement Planning and the management thereof will ensure that department’s requirements are reliably determined, appropriate sourcing strategies are identified; contracts are established and well administered through consistent oversight and assessment of the overall value chain by SCM practitioners (Brown, 2016). The aforesaid is an important decision-making process that gives rise to cost efficiency gains and enhanced service delivery.
5.1.4 Information Sharing
- Relaying of information to all users using multiple internal communication platforms (newsflash announcements, business portals, email groups). Current practice only includes intranet communication via webpage and email.
- Conduct an awareness campaign on the strategic role and special purpose vehicle as a value adding structure to support service delivery initiatives.
This study pursued an investigative study into the challenges of the supply chain management practices impeding service delivery within the Department of Justice and Constitutional Development (DoJ and CD). The study successfully established that there are several SCM practices impeding service delivery within the department. Several recommendations have been proposed for consideration and implementation by the department that would assist in ensuring the proactiveness of Supply Chain Management that will contribute to the enhancement of service delivery. Given the evolution of Supply Chain Management with the coalface of Public Sector to support service delivery, more research is required within the department and the Justice Crime Prevention and Security Cluster supply chain arena. This would possibly assist in collaborating efforts in combining resources to eliminate duplication of effort within the SCM arena.
6.1. Managerial Implications
- The study reveals that SCM managers or specialist must focus on strategic SCM and procurement planning to ensure that the buying power can leveraged to achieve cost efficiency and obtain the products and services timeously.
- The skills, knowledge and abilities of SCM practitioners and management must be improved so that the function can be more effectively managed.
- Supply Chain Management must advocate to develop customised training programmes and continuous development programme to empower SC practitioners
- Teamwork, collaboration and cooperation must be encouraged across the supply chain value chain partners to share information and participate in the forecasting and procurement planning to attain agility and flexibility.
Although the use of a closed-ended questionnaire has its limitations in responding to the subject manner, the researcher avoided the aforesaid anomaly by incorporating several questions to address each of the research objectives. Secondly, due to a consequence management enquiry within the department, certain adversities were accounted by the researcher which was also exacerbated by a lack of cooperation from the Chief Financial Officer’s Branch in timeously providing information for fear of any adverse repercussion and threat from a certain trade union. To avoid further delays in the collation of information, the researcher assured and instilled confidence in the participations that the study was for academic purposes only, and that all the information obtained will be treated with outmost confidentiality.
6.3. Recommendations for Further Research
Hereunder mentioned is to proposed and ensure that upcoming research and/or analysts contemplate on the enrichment and enhancement of the findings within the SCM arena. Lack of SCM skills, knowledge and competency has been considered one of the most sensitive topics of supply management, especially through the eyes of practitioners. Hence, future research from a Human Resource perspective regarding this area is highly desired. Future studies could explore suppliers’ perspectives on the proficiency and effectiveness of SCM as a strategic stakeholder within the Public Sector SCM value chain. Insights should be solicited from the Departments within the Justice Crime Prevention and Security Cluster on possible collaborative efforts to combine resources to eliminate duplication of effort within the SCM arena.
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