Intaher Marcus Ambe

This article explores supply chain management practices within selected municipalities in the West Rand district, Gauteng. An empirical research was conducted among supply chain practitioners in the municipalities based on the purposive sampling technique and the data were analyzed using descriptive statistics. The findings revealed that the municipalities have adopted and implemented supply chain management practices. However, supply chain management objectives are not always appropriately aligned with government policies, and the municipalities face serious supply chain issues such as leadership, lack of proper accountability and good governance. From the findings, it is evident that the lack of proper implementation of supply chain management in municipalities is the root cause of problems in service delivery in South Africa. It is recommended that municipal supply chain officials be empowered with supply chain skills for proper supply chain management execution.

Keywords: supply chain, municipalities, practices, West Rand district.
JEL Classification: M11

Supply chain management is strategic to the quest for service delivery excellence in South African municipalities. The supply chain journey in South African municipalities started in 2005 with reforms to introduce internationally accepted procurement best practices. The previous system failed the country due to deficiencies and malpractices resulting from the interpretation, implementation and governance of the preference procurement policy. Today (2016), supply chain management has become a talking point on which citizens are raising major concerns and it is perceived as being handled in a way that financially benefits few individuals. Laws and regulations governing municipal supply chain management are intentionally ignored or flouted by municipal officials resulting in corruption, fruitless, wasteful and unauthorized expenditure. In an effort to address these challenges, the National Treasury continuously provides guidance in terms of policy revision, clarity in the provisions of the supply chain management policy, as well as training to supply chain management officials. This article provides an insight into supply chain management practices in a municipal context in South Africa. It highlights the status, challenges and way forward for the implementation of supply chain management in a municipal environment.

Keywords: insight, supply chain management, municipality, public procurement, South Africa.
JEL Classification: M38