The effect of supply chain management in governance: Public sector perspectives

Abstract

Background: Supply chain management (SCM) was introduced as a remedy to irregularities of the past procurement models in public sector. Since its inception, literature has exposed a number of irregularities and deficiencies in the acquisition management processes within SCM in this sector. Objectives: This article explores a case study of KwaZulu-Natal to ascertain the current status of SCM in the aspect of acquisition of goods and services in relation to issues of good governance and human resource capital. It aims to determine the underlying factors that have given rise to the reported irregularities and deficiencies. Method: This article draws on quantitative data collected using a five-point Likert scale questionnaire, from ‘1’ strongly disagree to ‘5’ strongly agree. The study sample consisted of 129 participants. The data collected were analysed using the Statistical Package of Social Sciences tool. Results: The findings of the study indicate that there is (1) a notable human resource deficiency, (2) inadequate knowledge regarding the processes employed in the acquisition of goods and services within SCM and (3) a lack of adequate training. The study also notes best practices such as (1) a high level of accountability, (2) conformity of relevant laws, (3) transparency, (4) responsiveness and (5) participation. Conclusion: This study rejects the current assumptions that the acquisition process of the SCM system is flawed, and rather confirms the forever growing assumptions related to human resources capacity, knowledge and skills deficiencies as possible root causes of the reported irregularities and deficiencies.

Keywords

• supply chain management system
• supply chain management processes
• acquisition
• management