Supply chain management for service delivery in the Lejweleputswa municipal district

Abstract

The South African government has introduced a number of legislative measures in support of procurement reform with the aim to make procurement more efficient and effective. In order to provide quality basic services, local government needs to procure goods and services. The Policy on the Strategy to Guide Uniformity in Procurement Reform Processes in Government (RSA, 2003) stipulates that supply chain management forms the basis of sound financial management. However, the state of local government finances and financial management in many of South Africa’s municipalities is poor and municipalities find it difficult to deliver basic services to their communities. Local government should therefore prioritise the improvement of service delivery to provide for the growing demands of communities. The aim of this study was to establish an improved framework for supply chain management practices that will enhance service delivery within local and district municipalities. The study used a qualitative research method. A literature study was done on supply chain management, service delivery, and the regulatory framework based on service delivery and supply chain management. Based on the literature review, a questionnaire with open ended questions was developed. Semi-structured interviews were conducted by the researcher in three local municipalities (Matjhabeng, Masilonyana and Tswelopele) and in the Lejweleputswa district municipality. The researcher interviewed supply chain management practitioners, SCM managers, Chief Financial Officers and Municipal Managers. An electronic coding system using Computer Assisted Qualitative Data Analysis Software Atlas.ti was applied to code and analyse all the information provided by the interviewees. The study revealed that barriers impeding SCM performance can be classified into four categories. The first category is those barriers which municipalities face from the activities of the community, such as non-payment for municipal services, theft of municipal property, and the vandalism of infrastructure. The second category is non-compliance and non-adherence to SCM policies. With regards to this category, the study revealed that SCM practitioners deviate from laid down SCM policies and procedures as a result of undue political interference and acceptance of bribery. The interference of political office bearers shows that there is a violation of the Code of Conduct for Councillors, as stipulated in Schedule 1 of the Municipal Systems Act, 2000 (Act 32 of 2000) and Section 46 (1) of the same Act, which prohibit service providers from providing gifts, favours or hospitality to any role player involved in the SCM process. The third category is deficiencies in human resource capacity. The study revealed that lack of human resource capacity is caused by vacant posts being unfilled and those which have been filled being filled by personnel who lack the suitable qualifications, skills and experience needed to perform their functions. The fourth category is the organizational structure, which the study revealed to be a barrier that impedes the effective implementation of SCM. The contributing factors within the organization relate to the ethical conduct of SCM practitioners, senior management, and political office bearers. SCM practitioners do not display the required ethical behaviour when dealing with suppliers – their acceptance of bribes indicates that there is a lack of discipline, consequence management and unethical behaviour within SCM units. Senior management is further unresponsive to the requests and recommendations of SCM units and there is a lack of proper financial management. The research study provided practical recommendations to be taken by municipalities to overcome the identified challenges. If the recommendations were implemented correctly, a positive contribution in the improvement of SCM implementation and the effective provisioning of service delivery would be realised.