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NATIONAL GOVERNMENT DEPARTMENTS SUPPLY CHAIN …

PRELIMINARY ANALYSIS REPORT NATIONAL DEPARTMENTS - SUPPLY CHAIN management BASELINE STUDY PHASE 1 AND 2 30 MARCH 2016 NATIONAL TREASURY CAPACITY DEVELOPMENT NATIONAL GOVERNMENT DEPARTMENTS SUPPLY CHAIN management BASELINE STUDY PHASE 1 & 2 Page 1 of 33 Table of Contents 1. EXECUTIVE SUMMARY .. 3 2. INTRODUCTION AND OVERVIEW .. 4 Background .. 4 Scope .. 5 General comments .. 5 Challenges and limitations .. 6 NATIONAL GOVERNMENT DEPARTMENTS Data Analysis .. 6 Operational SUPPLY CHAIN management Structures .. 6 Funded, Filled and Vacant Posts .. 7 Figure 1: NATIONAL DEPARTMENTS vacancies as percentage of funded post .. 7 SUPPLY CHAIN management Functions .. 8 Figure 2: NATIONAL GOVERNMENT DEPARTMENTS SCM functions .. 8 NATIONAL GOVERNMENT DEPARTMENTS Individual Data Analysis .. 10 Demographics .. 10 Figure 3: Nationality and Race .. 10 Figure 4: Gender and Age.

The objective of the Supply Chain Management(SCM) baseline study is in line with National Treasury Strategic Plan: 2015/2019 Programme 5: Financial Accounting and Supply Chain Management Systems, strategic objective 5.5 which is to …

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Transcription of NATIONAL GOVERNMENT DEPARTMENTS SUPPLY CHAIN …

1 PRELIMINARY ANALYSIS REPORT NATIONAL DEPARTMENTS - SUPPLY CHAIN management BASELINE STUDY PHASE 1 AND 2 30 MARCH 2016 NATIONAL TREASURY CAPACITY DEVELOPMENT NATIONAL GOVERNMENT DEPARTMENTS SUPPLY CHAIN management BASELINE STUDY PHASE 1 & 2 Page 1 of 33 Table of Contents 1. EXECUTIVE SUMMARY .. 3 2. INTRODUCTION AND OVERVIEW .. 4 Background .. 4 Scope .. 5 General comments .. 5 Challenges and limitations .. 6 NATIONAL GOVERNMENT DEPARTMENTS Data Analysis .. 6 Operational SUPPLY CHAIN management Structures .. 6 Funded, Filled and Vacant Posts .. 7 Figure 1: NATIONAL DEPARTMENTS vacancies as percentage of funded post .. 7 SUPPLY CHAIN management Functions .. 8 Figure 2: NATIONAL GOVERNMENT DEPARTMENTS SCM functions .. 8 NATIONAL GOVERNMENT DEPARTMENTS Individual Data Analysis .. 10 Demographics .. 10 Figure 3: Nationality and Race .. 10 Figure 4: Gender and Age.

2 10 Figure 5: Occupational Roles: NATIONAL Level .. 11 Figure 6: Salary levels of officials at NATIONAL Level .. 11 Figure 7: Officials in acting positions at NATIONAL Level .. 12 Qualifications .. 12 Figure 8: Highest Secondary Qualifications .. 12 Figure 9: Professional Affiliation .. 13 Figure 10: Completed Qualifications at NATIONAL Level .. 13 Figure 11: Description of Completed Qualifications at NATIONAL 14 Figure 12: Qualifications officials are interested in 14 Training .. 15 Figure 13: SUPPLY CHAIN management Courses completed .. 15 Figure 14: SUPPLY CHAIN management officials are interested in undertaking .. 16 Skills Profile .. 16 Figure 15: Public Sector Experience vs. Private Sector Experience .. 16 NATIONAL GOVERNMENT DEPARTMENTS SUPPLY CHAIN management BASELINE STUDY PHASE 1 & 2 Page 2 of 33 Figure 16: Experience: Public Sector SCM vs. Private Sector SCM .. 17 3.

3 General Findings .. 17 4. Conclusion .. 19 ANNEXURE 1- SCM BASELINE ROADSHOWS .. 20 ANNEXURE 2: SUPPLY CHAIN management FUNCTIONS PER NATIONAL GOVERNMENT DEPARTMENT .. 22 NATIONAL GOVERNMENT DEPARTMENTS SUPPLY CHAIN management BASELINE STUDY PHASE 1 & 2 Page 3 of 33 1. EXECUTIVE SUMMARY The objective of the SUPPLY CHAIN management (SCM) baseline study is in line with NATIONAL Treasury Strategic Plan: 2015/2019 Programme 5: Financial Accounting and SUPPLY CHAIN management Systems, strategic objective which is to develop SUPPLY CHAIN management capacity. On 10 December 2014 the Cabinet Committee for Governance and Administration adopted the recommendations proposed in the Cabinet Memorandum No: 25 of 2014 pertaining to SCM reforms and capacity development. Cabinet noted the strategic importance of SCM in service delivery and in achieving South Africa s developmental and transformational objectives.

4 In order to position SCM as a strategic function, Cabinet approved a range of steps to reform the SCM system which includes amongst others, that the SCM performance criteria be included in the performance agreements of Accounting Officers from 1 April 2015 and that Accounting Officers to conduct a capacity review of SCM staff and take remedial action where required. The strategic objective statement of the SUPPLY Capacity Building chief directorate within the Office of the Accountant-General at NATIONAL Treasury is to research, develop and implement interventions that will contribute to improved SUPPLY CHAIN management capacity, capability and performance in all three spheres of GOVERNMENT , through institutional, organisational, individual and stakeholder development. The SUPPLY CHAIN management (SCM) Baseline Study seeks to determine the number, demographic profile and qualifications of SCM officials (practitioners and managers) that are currently employed in the NATIONAL , provincial and local spheres of GOVERNMENT .

5 This is a consolidated preliminary SCM baseline study report in respect of NATIONAL GOVERNMENT DEPARTMENTS . The main source of information for the exercise is a survey completed by SCM managers and practitioners. GOVERNMENT is the single biggest spender in South Africa and must promote good financial management in order to maximise delivery through the efficient and effective use of limited resources. A well performing SUPPLY CHAIN management function is therefore critical to achieving the strategic objectives and goals of any GOVERNMENT institution. The third NATIONAL Skills Development Strategy (NSDS III) recognises that the capacity of the public sector lags far behind what is expected of it, and in many NATIONAL GOVERNMENT DEPARTMENTS SUPPLY CHAIN management BASELINE STUDY PHASE 1 & 2 Page 4 of 33 areas critical to the nation s needs, there are serious skills gaps.

6 To achieve the goals of a developmental state it requires a public service that is skilled and capable to deliver quality services efficiently and effectively. Public procurement is a core function of public financial management and service delivery. GOVERNMENT institutions are under increasing pressure to deliver and demonstrate success in terms of both service delivery and organisational performance. State institutions must ensure that their employees have the necessary knowledge, skills and attributes required to undertake their duties competently. The accounting officer must ensure that the SUPPLY CHAIN management function is adequately structured and staffed with appropriately qualified and competent professionals able to support management in achieving the organisational mandate, strategy and goals. 2. INTRODUCTION AND OVERVIEW During the period 2015 to 2016, the NATIONAL Treasury conducted a baseline study in public sector SCM to determine a baseline capacity review of public sector SCM in order to help GOVERNMENT with its goal linked to Presidential Outcome 12: to improve planning, resource allocation, performance and service delivery.

7 There are two phases to the project, the first being the collection of organisational data and the second being an individual survey. Phase one (1) required each NATIONAL department to provide the number of funded, filled and vacant posts in the SCM Units, including the names of SCM officials, their job title and email address, together with an approved organisational structure of the SCM function in their respective institutions. Phase two (2) required each individual to complete an online questionnaire to determine the demographic, qualifications, courses and experience of individual SCM officials in the entity. Background Serious capacity and capability constraints exist across GOVERNMENT pertaining to public SUPPLY CHAIN management (SCM) across the three spheres of GOVERNMENT . NATIONAL GOVERNMENT DEPARTMENTS SUPPLY CHAIN management BASELINE STUDY PHASE 1 & 2 Page 5 of 33 NATIONAL Treasury intends to design, develop and deliver public sector specific interventions aimed at improving the capacity and capability of public sector employees in SCM.

8 A systematic capacity and capability needs easements provides a realistic basis upon which to plan, budget, direct, monitor and evaluate effective and efficient Capacity Development initiatives and Education, Training and Development (ETD) programmes. The results of the baseline study will inform the development of responsive and appropriate capacity development solutions and enable the NATIONAL Treasury and state institutions to channel resources into the areas where they will contribute the most to capacity development interventions, employee training and development, as well as enhancing staff morale and organisational performance. Scope This report on the SCM baseline study involves forty three (43) NATIONAL GOVERNMENT DEPARTMENTS . The provincial DEPARTMENTS and municipalities report will be finalised and released in the second and third quarter of the 2016/2017 financial year respectively.

9 It should be noted that information presented below is a preliminary analysis of the SCM baseline study of phase 1 and 2. There may be no correlation of the number of surveys completed between the two phases due to the following reasons: Structural changes and changes in staffing as a result of appointments, resignations and retirements; and New employees that were not part of the phase 1 survey, however, have completed phase 2 surveys. The data reflects the submissions from respective NATIONAL DEPARTMENTS . SCM baseline road shows were conducted with various NATIONAL DEPARTMENTS in order to assist them to complete both phase 1 and 2 surveys (for a list of these road shows conducted, please refer to Annexure 1). General comments It should be noted that the information presented below is a preliminary analysis of the SUPPLY CHAIN management (SCM) Baseline Study Phase 1 and Phase 2; NATIONAL GOVERNMENT DEPARTMENTS SUPPLY CHAIN management BASELINE STUDY PHASE 1 & 2 Page 6 of 33 The data reflects the submissions from the respective NATIONAL GOVERNMENT DEPARTMENTS ; and The data needs to be updated periodically to cater for structural changes and changes in staffing due to appointments, resignations and retirements.

10 Challenges and limitations The study is dependent on the full cooperation and support of all GOVERNMENT institutions and individual SCM employees. Some DEPARTMENTS were non-responsive; others submitted incomplete, incoherent or inaccurate organisational data. The data submitted required extensive validation. Various surveys were completed without the following information: Organisational structures; Incomplete surveys which had to be re-done for the relevant DEPARTMENTS to confirm the information; No individual e-mail addresses loaded on the system in order to conduct phase 2 survey; Incorrect individual e-mail addresses provided; Some DEPARTMENTS and staff completing the survey more than once. Duplicated surveys had to be deleted; DEPARTMENTS not completing both phase 1 and 2 timeously; Incoherent information and a number of abbreviations which do not make sense provided; Information technology (IT) system being down most of the time and some staff not being able to access the survey due to different IT platforms; and Some staff completing the survey without understanding the question and therefore providing irrelevant information.


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