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SUPPLY CHAIN MANAGEMENT A GUIDE FOR ACCOUNTING …

NATIONAL TREASURY Republic of South Africa February 2004 _____ SUPPLY CHAIN MANAGEMENT A GUIDE FOR ACCOUNTING OFFICERS / AUTHORITIES 2 PREFACE This GUIDE sets out the philosophy behind the adoption of an integrated SUPPLY CHAIN MANAGEMENT (SCM) function across government and will assist stakeholders to understand the responsibilities this implies. This document explains the impact of the changes for ACCOUNTING officers/authorities at each step of the SCM cycle. While the Constitution states that procurement practices must be fair, equitable, transparent, competitive and cost-effective, the present position is far from the ideal, for example: procurement and provisioning procedures are rule driven, and value for money is almost always equated to the lowest price tendered - the emphasis is on monitoring inputs; procurement and provisioning activities are not linked to budgetary planning; asset MANAGEMENT is limited to control of inventory, rather than on ensuring

♦ bid documentation are not uniform, causing uncertainty to bidders and practitioners; ... impossible to evaluate the merits of the system. In September 2003, Cabinet adopted a SCM policy to replace the outdated ... accounting officer/authority who fails to implement the measures suggested in Guideline documents (such as this one) may be ...

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