2015 Public Sector Supply chain management review

The 2008 recession was followed by a dramatic rise in government debt, from R450 billion in 2009/10 to R1.4 trillion in 2013/14. This is projected to grow further over the coming years. To take account of this, while at the same time continuing with service delivery, government had to reprioritise spending and increase efficiency. Public expenditure nevertheless continues on a large and necessary scale. In 2013/14, the South African public sector spent R500 billion on goods and services and on construction works. These supported and enabled the delivery of services to the country’s residents. This is an enormous amount of money. Wisely and efficiently spent, it can be a great force for good. It can ensure that those in need receive services, T Public spending continues to grow. It is important that these funds are spent wisely. 2015 PUBLIC SECTOR SUPPLY CHAIN MANAGEMENT REVIEW that infrastructure such as roads and ports is built and maintained, that schools are well-equipped and that health services are widely available. It can also spread wealth to hard-working entrepreneurs who successfully tender for government contracts and, in doing so, create jobs. Even those not directly involved in the public sector supply chain can benefit, as suppliers to government source their supplies and materials from manufacturers, farmers and many others. It is well known that public sector SCM1 in South Africa is imperfect. There are constant allegations of corruption and inefficiency. Service delivery protests are a sign that people feel that they are not receiving the quantity or quality of services they need. Schools sometimes open at the start of the year without learner support materials. An efficient and intelligent public sector SCM system can help to overcome these problems. This document describes the shape and character of the present system, outlines the regulatory environment in which public procurement takes place, makes clear the many problems that exist and points to ways in which these can be overcome. The vision is one of a South African public sector SCM system staffed by people who have the skills, knowledge and enthusiasm to ensure that every decision is well-informed and appropriate; and who have the technical and organisational support that they need in order to carry out this important work in line with the country’s Constitution, laws and regulations.