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2015 Public Sector SuPPly chain management review

2015 Public Sector SuPPly chain management review 1 Foreword SuPPly chain management (SCM) is one of the key mechanisms enabling government to implement policy. Traditionally, SCM has been misunderstood and undervalued. Its strategic importance has not been recognised, and it has been under-capacitated. The negative effects of inefficient Public Sector SCM, particularly in the procurement phase of the chain , are well documented. Suppliers charge excessive prices; goods and services contracted for and delivered are of poor quality and unreliable; and there is corruption and waste. The private Sector , by contrast, has tended to invest astutely in SCM in order to maximise shareholder value and ensure that its products and services match clients needs.

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,

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