Intaher M. Ambe

Supply chain management challenges in the South African public sector

This article articulates the challenges that restrain supply chain management implementation in the South African public sector. Supply chain management (SCM) promotes South Africa’s New Public Management model by means of improved financial management and is a strategic tool for management and enhancement of its procurement practices. Since its inception (2003), training and workshops have been ongoing across various spheres of government. However, despite the effort in capacitating practitioners with appropriate skills and knowledge, SCM execution still remains a challenge. The article utilised a cross-case analysis of case studies conducted for the certificate in the Advanced Programme in Sourcing and Supply Chain Management at the University of South Africa (UNISA). Purposive sampling technique was used to select the cases. The findings of the article reveals that SCM has been fully employed across all spheres of government and customised policies developed as required by the SCM policy. Notwithstanding the employment of the concept, there are challenges that restrain full execution to achieve its potential. These challenges stem from, among other things, non-compliance with SCM policies and regulations; fraud and corruption; lack of proper knowledge and skills etc. The article concludes by suggesting a framework that could improve the public sector supply chain and ensure efficient and effective SCM implementation.

Managing and Controlling Public Sector Supply Chains

Supply chain management (SCM) represents a significant change in the way that organisations view themselves and has witnessed values created through the integration and coordination of supply, demand and relationships in order to satisfy customers in an effective and profitable manner both in the private and public sectors. The concept has seen interest among organisations (Burges & Singh, 2006) including the public sector (Hendricks & Singhal, 2003; Gansler et al., 2004; OCG, 2005; 2006; Ambe, 2006; Matthee, 2006; Essig & Dorobek, 2006; Migiro & Ambe, 2008; Ambe, 2009). As a result, a number of studies on SCM have been undertaken in many different industries and sectors. However, majority of these related studies recognize that an effective SCM is a powerful tool to achieve cost advantage and a more profitable outcome for all parties within and beyond any organization (Zsidisin et al., 2000; Davis, 2008). It is for this reason that the concept has gained interest in the public sector in recent years (South Africa, 2005; Blanchard et al., 2008; Kumar, S. et al., 2008; Pan & Pokharel, 2007; Migiro & Ambe, 2008; Ambe, 2009). For example, countries such as the UK, US and Canada have for long employed SCM in the management of their procurement and logistics (OCG, 2005) as well as South Africa (Ambe, 2009) among others. Despite the interest and employment of SCM in public institutions, Humphries and Wilding (2004) assert that much has not been done compared to the private sector. According to Korosec (2003), majority of SCM literature that does exist focuses primarily on private sector transactions or on international governments owing to the fact that SCM has been used in both of these arenas for almost two decades. Notwithstanding this, many professional government organizations have indicated that SCM could hold great promise in enhancing public procurement systems. However, Essig & Dorobek (2006:1) argue that the management of public supply chain raises various research questions that need to be answered. The chapter explore the concept of supply chain management in the public sector. The chapter utilises a case study of the SCM in the South African public sector to differentiate between public versus private sectors supply chains. It presents the critical components, features and importance of public sector supply chains. Furthermore, the chapter portray the need for supply chain improvement and the employment of performance measures in the public sector. A balanced scorecard as a supply chain performance indicator is suggested for application to the public sector supply chain. The chapter contributes to literature on the application of public sector supply chains.

Grounded theory analysis of municipal supply chain management

This article illustrates practical examples of theories built during a grounded theory process on the implementation of supply chain management in the Central District Municipality, North West province, South Africa. It provides an understanding of and evaluates some basic concepts that are associated with grounded theory. The article suggests theories and hypotheses about the implementation of supply chain management in the Central District Municipality. It contributes to knowledge on the application of grounded theory in the field of supply chain research.