Evaluating the Effectiveness of Supply Chain Management Practices in Enhancing Sustainability, Compliance, and Efficiency of Procurement Processes Within Local Municipality
DOI:
https://doi.org/10.51137/wrp.ijsbe.712Keywords:
Supply Chain Management, Procurement Efficiency, Regulatory Compliance, Local Municipality, Sustainable ProcurementAbstract
This study was undertaken to evaluate the effectiveness of Supply Chain Management (SCM) practices in enhancing sustainability, compliance, and efficiency of procurement processes within a Local Municipality. The study addresses persistent challenges of non-compliance, inefficiencies, irregular expenditure, and unsustainable procurement practices in municipal systems. A qualitative research approach was adopted, using semi-structured interviews with SCM officials to explore current practices, sustainability considerations, and operational challenges. The findings reveal that while SCM policies are aligned with regulatory frameworks such as the Municipal Finance Management Act (MFMA) and the Preferential Procurement Policy Framework Act (PPPFA), weak implementation, manual processes, limited staff capacity, and inadequate integration of sustainable procurement principles undermine their effectiveness. Digital procurement systems, strong internal controls, risk management, and responsible resource utilization were identified as key drivers of improved efficiency, compliance, and long-term sustainability. However, political interference, inadequate skills, poor contract management, and limited supplier development continue to hinder sustainable procurement performance. The study concludes that strengthening governance, adopting e-procurement technologies, promoting green and socially responsible procurement, and investing in capacity building are essential for improving procurement outcomes. Aligning SCM practices with best-performing municipalities, sustainability principles, and global standards can enhance transparency, accountability, environmental responsibility, and service delivery.
References
National Treasury. (2021). Municipal Finance Management Act (MFMA) Audit Outcomes and E-Procurement Strategy Framework. Pretoria: Republic of South Africa.
Sebola, M. P. (2017). Accountability and transparency in managing public funds: A South African local government perspective. Journal of Public Administration, 52(2), 285–298.
World Bank. (2016). Electronic Government Procurement (e-GP): Roadmap for Implementation. Washington, DC: World Bank. https://openknowledge.worldbank.org/handle/10986/24916
National Treasury. (2018). Municipal Budgeting and Reporting Regulations Handbook. Pretoria: Republic of South Africa.
SALGA (South African Local Government Association). (2019). Skills Audit Report for Local Government. Pretoria: Republic of South Africa.
South African Cities Network (SACN). (2018). State of Cities Report. https://www.sacities.net
Auditor-General South Africa (AGSA). (2020). Municipal Audit Outcomes: Western Cape Report.
National Treasury. (2021). Case Studies in Municipal Procurement Reform. Pretoria: Republic of South Africa.
Stellenbosch Municipality. (2019). Annual Report 2018/2019. https://www.stellenbosch.gov.za
Transparency International. (2019). Strategies to Tackle Corruption in Local Government Procurement in Asia and Africa. https://ti-defence.org/wp-content/uploads/2019/11/2019_Strategies-to-Tackle-Corruption-in-Local-Government-Procurement-in-Asia-and-Africa.pdf
Public Service Commission. (2020). Evaluation of the Effectiveness of Anti-Corruption Measures in South African Municipalities. Pretoria: Republic of South Africa.
Von Bertalanffy, L. (1968). General System Theory: Foundations, Development, Applications. New York: George Braziller.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Sterman, J. D. (2000). Business Dynamics: Systems Thinking and Modeling for a Complex World. Boston, MA: Irwin/McGraw-Hill. ISBN: 978-0-07-231135-8.
United Nations Department of Economic and Social Affairs (UNDESA). (2004). Innovation in Governance: Seoul Metropolitan Government Case Study.
World Bank. (2016). Seoul’s OPEN System: Fighting Corruption with Transparency. https://www.worldbank.org/en/news/feature/2016/04/14/seoul-open-system
OECD. (2016). Preventing Corruption in Public Procurement. OECD Publishing. https://doi.org/10.1787/9789264265820-en
OECD. (2019). Public Procurement in Estonia: Towards a New Procurement Culture. https://doi.org/10.1787/1d0aa0b1-en
World Bank. (2017). Benchmarking Public Procurement 2017: Assessing Public Procurement Regulatory Systems in 180 Economies. https://doi.org/10.1596/978-1-4648-1099-0
Auditor-General of South Africa (AGSA). (2023). Consolidated General Report on the Local Government Audit Outcomes: 2021–22. Pretoria: AGSA. Retrieved from: https://www.agsa.co.za
National Treasury. (2023). Municipal Finance Management Act No. 56 of 2003: Supply Chain Management Regulations and Guidelines. Pretoria: Republic of South Africa.
Creswell, J. W., & Creswell, J. D. (2018). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches (5th ed.). Thousand Oaks, CA: SAGE Publications.
Saunders, M., Lewis, P., & Thornhill, A. (2019). Research Methods for Business Students (8th ed.). Harlow, England: Pearson Education Limited.
Yin, R. K. (2018). Case Study Research and Applications: Design and Methods (6th ed.). Thousand Oaks, CA: SAGE Publications.
Silverman, D. (2018). Doing Qualitative Research (5th ed.). London: SAGE Publications.
Bryman, A. (2016). Social Research Methods (5th ed.). Oxford University Press.
Silverman, D. (2020). Interpreting Qualitative Data (6th ed.). SAGE Publications.
Creswell, J. W., & Poth, C. N. (2018). Qualitative Inquiry and Research Design: Choosing Among Five Approaches (4th ed.). SAGE Publications.
Lincoln, Y. S., & Guba, E. G. (1985). Naturalistic Inquiry. SAGE Publications.
Lindqvist, A., Renström, E. A., & Gustafsson Sendén, M. (2019). Reducing a Male Bias in Language? Establishing the Efficiency of Three Different Gender-Fair Language Strategies. Sex Roles, 81(1-2), 109–117. https://doi.org/10.1007/s11199-018-0974-9
UN Women. (2017). Gender-inclusive language guidelines. https://www.unwomen.org/ sites/default/files/Headquarters/Attachments/Sections/Library/Gender-inclusive%20language/Guide lines-on-gender-inclusive-language-en.pdf
Silverman, D. (2018). Doing Qualitative Research (5th ed.). SAGE Publications.
Pooe, D. R. I. (2016). Investigating municipal procurement challenges in South Africa: A qualitative study. International Business & Economics Research Journal, 14(1), 67–77. https://doi.org/10.2139/ssrn.2876542
National Treasury. (2013). MFMA Circular No. 62: SCM enhancing compliance and accountability. Municipal Finance Management Act Circular. National Treasury, Pretoria.
Transparency International. (2014). Integrity Pacts in Public Procurement: An Implementation Guide. Transparency International.
Basel Institute on Governance. (2024). Learning Review: Transparency International’s Integrity Pacts for Public Procurement. Basel Governance Review.
Aikins, S. K. (2022). Enhancing procurement quality performance: Roles of procurement audit and top management commitment. Journal of Public Procurement & Contract Management, 4(2), 113–130. https://doi.org/10.1080/01900692.2022.2116046
Govender, K. (2020). Procurement and supply chain management in government institutions: A case study of select departments in the Limpopo Province, South Africa. Dutch Journal of Finance and Management, 1(1), 37–52. https://doi.org/10.1016/j.sajit.2020.01.005
Pillay, R., & Mafini, C. (2017). The impact of e‑procurement on procurement process efficiency in South African local municipalities. Journal of Public Procurement, 17(3), 289–307. https://doi.org/10.1108/JGP-07-2017-0022
Ramdass, N. (2019). The application of lean management practices in the supply chain unit of eThekwini municipality (master’s thesis). University of KwaZulu‑Natal, Durban.
Manyathi, S. (2014). A theoretical evaluation of the role of training for supply chain management employees of the Department of Provincial Treasury: Case of KwaZulu‑Natal, South Africa. Mediterranean Journal of Social Sciences, 5(7), 233. https://doi.org/10.5901/mjss.2014.v5n7p233
Schoeman, C. (2019). An analysis of procurement policy compliance and accountability in metropolitan municipalities (master’s dissertation, University of Pretoria). Retrieved from https://repository.up.ac.za/handle/2263/72818
Pillay, P., & Mafini, C. (2017). Supply chain bottlenecks in the South African construction industry: Qualitative insights. Journal of Transport and Supply Chain Management, 11, Article a307. https://doi.org/10.4102/jtscm.v11i0.307
Fixel, S. (2024). Government contract management automation: What, how, and why. Appian Blog.
ISO. (2017). ISO 20400:2017 – Sustainable procurement – Guidance. International Organization for Standardization.
World Bank Independent Evaluation Group. (2021). Chapter 3: Improving procurement economy, integrity, transparency, and fairness. In Making procurement work better (pp. 45–68). World Bank. Retrieved from https://ieg.worldbankgroup.org/evaluations/making-procurement-work-better/chapter-3-improving-procurement-economy-integrity
Auditor-General South Africa (2023). Consolidated General Report on Local Government Audit Outcomes.
National Treasury (2022). Public Sector Supply Chain Management Review.
Aikins, S. K., et al. (2023). Digital transformation in public procurement. Government Information Quarterly. https://doi.org/10.1016/j.giq.2023.101779
OECD. (2023). Public Procurement Review and Best Practices Report. https://doi.org/10.1787/g2g9f4c7-en
World Bank. (2022). Digital Procurement Systems. https://doi.org/10.1596/978-1-4648-1806-8
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Kabelo Josaiah Phahlamohlaka, Sabelo Mpungose (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
