PRELIMINARY ANALYSIS REPORT - National Treasury. Supply Chain... · preliminary analysis report ... supply chain management baseline study road shows ... kwazulu-natal pt 47 40 7

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PRELIMINARY ANALYSIS REPORT

PROVINCIAL TREASURIES SCM SUPPORT UNITS SUPPLY CHAIN MANAGEMENT BASELINE STUDY PHASE 1 AND 2

30 MARCH 2016 NATIONAL TREASURY CAPACITY DEVELOPMENT

PROVINCIAL TREASURIES SUPPLY CHAIN MANAGEMENT SUPPORT UNITS

BASELINE STUDY PHASE 1 & 2

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Table of Contents

1. EXECUTIVE SUMMARY ........................................................................................................ 4

2. INTRODUCTION AND OVERVIEW ......................................................................................... 5

2.1 Background ................................................................................................................................... 5

2.2 Scope ............................................................................................................................................ 6

2.3 General comments ....................................................................................................................... 7

2.4 Challenges and limitations ............................................................................................................ 7

3. PHASE 1: CONSOLIDATED ORGANISATIONAL DATA ANALYSIS ............................................. 8

3.1 Provincial Treasuries and National Treasury SCM Support Units Data Analysis .......................... 8

3.1.1 Provincial Treasuries Supply Chain Management Support Structures ........................... 8

Figure 1: Provincial Treasuries Organisational Structures .......................................................... 8

3.1.2 Funded, Filled and Vacant Posts .................................................................................... 9

Figure 2: Vacancies as % of approved funded positions analysis ............................................... 9

3.1.3 Supply Chain Management Support Functions ........................................................... 10

Figure 3: SCM support functions ................................................................................................ 10

4. Phase 2: Consolidated Individual Data Analysis ................................................................. 11

4.1 Provincial Treasuries Individual Data Analysis ............................................................................ 11

4.1.1 Demographics ............................................................................................................... 11

Figure 6: Nationality and Race ................................................................................................... 11

Figure 8: Age of Officials ............................................................................................................. 12

Figure 9: Occupational roles ....................................................................................................... 13

Figure 10: Current job status ...................................................................................................... 13

Figure 11: Salary levels ............................................................................................................... 14

Figure 12: Acting or not acting status ........................................................................................ 14

4.1.2 Qualifications ................................................................................................................ 15

Figure 13: Highest secondary qualifications .............................................................................. 15

Figure 14: Membership of professional bodies ......................................................................... 15

Figure 15: Formal education completed .................................................................................... 16

Figure 16: Completed formal education qualification description ........................................... 16

Figure 17: Formal education interested in undertaking ........................................................... 18

4.1.3 Supply Chain Management Training ............................................................................ 19

Figure 18: Supply Chain Management training courses successfully completed .................... 19



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Figure 19: Supply Chain Management training courses provincial treasuries staff would like

to complete ................................................................................................................................. 20

4.1.4 Skills Profile .................................................................................................................. 21

Figure 21: Private and Public Supply Chain Management Experience of officials ................... 21

Analysis of Provincial Treasuries and National Treasury Skills Profiles ................................... 22

6. Conclusion .................................................................................................................... 24

The end. ...................................................................................................................................... 24

ANNEXURE 1 ............................................................................................................................... 25

SUPPLY CHAIN MANAGEMENT BASELINE STUDY ROAD SHOWS ............................................. 25

ANNEXURE 2 ............................................................................................................................... 25

SUPPLY CHAIN MANAGEMENT FUNCTIONS PER TREASURY .................................................... 25



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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 5.5

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.

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 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.

This is a consolidated preliminary SCM baseline study

report in respect of relevant treasuries SCM support

units. 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.



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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

areas critical to the nation’s needs, there are serious skills gaps. 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.”

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.

2.1 Background

Serious capacity and capability constraints exist across government

pertaining to public Supply Chain Management (SCM) across the three

spheres of government.



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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.

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.

2.2 Scope

This report on the SCM baseline study involves nine (9) provincial treasuries,

Office of the Chief Procurement Officer in National Treasury The provincial

departments and municipalities report will be finalised and released in the

second and third quarter of the 2016/2017 financial year respectively.

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 provincial treasuries.

SCM baseline road shows were conducted with various provincial treasuries 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).



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2.3 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;

The data reflects the submissions from the respective provincial

treasuries; and

The data needs to be updated periodically to cater for structural changes

and changes in staffing due to appointments, resignations and

retirements.

2.4 Challenges and limitations

The study is dependent on the full cooperation and support of all government

institutions and individual SCM employees. The data submitted required

extensive validation.

Various surveys were completed without the following information:

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 treasuries and staff completing the survey more than once. Duplicated surveys had to be deleted;

Treasuries not completing both phase 1 and 2 timeously;

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.

Some surveys questionnaires fields not properly structured in order to conduct the

data analysis effectively and efficiently.

The most important findings are summarised in section five (5) of this report.



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3. PHASE 1: CONSOLIDATED ORGANISATIONAL DATA ANALYSIS

3.1 Provincial Treasuries and National Treasury SCM Support Units Data

Analysis

3.1.1 Provincial Treasuries Supply Chain Management Support Structures

Provinces have a choice between a functional or integrated structure;

A functional structure is characterised by a stand-alone Municipal

Finance Management Act (MFMA) support unit which is responsible to

provide all MFMA related support services to local government, including

SCM; and

An integrated structure is characterised by SCM Support Structures

where provincial and local spheres of government are supported by the

same team.

Figure 1: Provincial Treasuries Organisational Structures

PROVINCE ORGANISATIONAL STRUCTURE

Eastern Cape Functional

Free State Functional

Gauteng Integrated

Limpopo Functional

KwaZulu-Natal Integrated

Mpumalanga Functional

Northern Cape Integrated

North West Integrated

Western Cape Integrated



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3.1.2 Funded, Filled and Vacant Posts

Figure 2: Vacancies as % of approved funded positions analysis

SUPPLY CHAIN MANAGEMENT SUPPORT NATIONAL AND PROVINCIAL

TREASURIES UNITS

FILLED POSTS AND VACANCIES

Description

Approved

funded

posts

Filled

positions Vacancies

Vacancies

as % of

approved

funded

positions

National Treasury 87 68 19 22%

Limpopo PT 62 41 21 34%

KwaZulu-Natal PT 47 40 7 15%

Northwest PT 43 29 14 33%

Mpumalanga PT 36 27 9 25%

Eastern Cape PT 30 24 6 20%

Gauteng PT 21 21 0 0%

Northern Cape PT 23 5 18 78%

Western Cape PT 17 11 6 35%

Free State PT 8 6 2 25%

Total 374 272 102 27%

Figure 2 depicts a summary of funded, filled and vacant posts within the SCM support

units of the National Treasury and Provincial Treasuries.

As shown above, Gauteng Provincial Treasury is fully capacitated with 0% vacancies

of approved funded positions.

Northern Cape Provincial Treasury has the least capacity with the highest vacancy

rate (i.e. 78%).

Vacancy rates of all other treasuries range from 15% to 35% which is above the

acceptable norm of 5%.



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3.1.3 Supply Chain Management Support Functions

Figure 3: SCM support functions

NATIONAL AND PROVINCIAL TREASURY SUPPLY CHAIN MANAGEMENT SUPPORT FUNCTIONS

Supply Chain Management Function

Filled Vacant Total

SCM Policy, Norms & Standards 42 20 62

SCM Governance Monitoring & Compliance 55 22 77

Strategic Procurement 19 8 27

Transversal Contracting 47 15 62

SCM Client Support Focusing on Provincial Departments

58 18 76

SCM Client Support Focusing on Delegated Municipalities

2 2 4

SCM Information & Communication Technology 12 8 20

Other 37 9 46

Total 272 102 374

Explanation of Other* Filled Vacant Total

Senior Manager 1 0 1

Personal Assistant 2 0 2

Supplier Manager 13 2 15

Programme Support 3 1 4

Asset Management 1 3 4

Office of the DDG: CPO 3 0 3

SCM Client Support 7 3 10

Office Support 7 0 7

Total 37 9 46

Figure 3 shows that the majority of staff employed in the SCM support units of

treasuries is within the SCM Client Support Function Focusing on Provincial

Departments followed by SCM Governance, Monitoring and Compliance.



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The highest vacancy rates are noticeable within the SCM Policy, Norms and

Standards which translate into 32% and 29% in respect of SCM Governance

Monitoring & Compliance.

What is of concern is that only few staff employed in SCM support units within the

SCM Client Support Function focuses on Delegated Municipalities. This means that

that there is a huge human capacity gap to provide support to municipalities.

4. Phase 2: Consolidated Individual Data Analysis

4.1 Provincial Treasuries Individual Data Analysis

4.1.1 Demographics

Figure 6: Nationality and Race

All employed SCM officials are South African citizens. The racial composition of staff

is in line with the national demographics.

100%

0% 0%0%

20%

40%

60%

80%

100%

120%

Nationality

SA

Unknown

Other77%

10%

10%

3%

Race

Black

White

Coloured

Asian



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Figure 7: Gender and People with Disabilities

An analysis by gender, represented in Figure 7 above indicates that males are in the

minority, i.e. 47% of the total staff. This is also in line with the national demographics

due to more female representation. The composition of people with disabilities is more

than the 2% of the national employment equity targets.

Figure 8: Age of Officials

53%

47%

44%

46%

48%

50%

52%

54%

Female Male Unknown

Gender4%

96%

People with disabilities

Yes

No

2%

20%

17%

24%

14%

23%

1%

0% 5% 10% 15% 20% 25% 30%

18yrs-25 yrs

26 yrs- 31 yrs

32yrs-36 yrs

37 yrs- 45 yrs

46yrs-50 yrs

51 yrs- 70 yrs

Unknown

Age



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Information about age profile may contribute to workforce planning change. Figure 8

indicates that 23% of staff is between ages 51 years and 70 years range. Knowing

how many employees are shortly to become eligible to access their retirement

benefits, and what skill sets those employees possess will contribute in planning to

take action to offset any future staffing plans. Only 2% of staff is between 18 and 25

years of age with 61% of those staff being above the age of 39 years and 38% of staff

is below the age of 36.

Figure 9: Occupational roles

Figure 9 above indicates that the majority of employees (i.e. 31%) fall between post

levels 9-10, i.e. Junior Management Service followed by supervisory level staff.

Figure 10: Current job status

CURRENT JOB STATUS

Permanent 96% 208

Internship 0% 0

Contract 4% 8

Seconded 0% 0

Unknown 0% 1

6%24%

31%25%

12%1%

0% 5% 10% 15% 20% 25% 30% 35%

PractitionerLevel

SupervisoryLevel

JuniorManagement

Service

MiddleManagement

Service (MMS)

SeniorManagementService (SMS)

Unknown

Post Levels 1-6

Post Levels 7-8

Post Levels 9-10

Post Levels11-12

Post Levels13-16

Unknown

Series1 6% 24% 31% 25% 12% 1%

Occupational Roles



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Only 4% of officials are on employed on a contract basis and 96% of officials are

permanently employed.

Figure 11: Salary levels

The majority of staff, i.e. 20% is at salary level 9. This is more or less in line with

occupational categories information as presented in figure 9 above.

Figure 12: Acting or not acting status

Only 2% of staff is in acting positions.

2%

98%

0%

20%

40%

60%

80%

100%

120%

Yes No

Acting or not Acting

1%0%

3%

9%

12% 12%12%

20%

12% 12%

2% 4%0% 0% 0% 0%

1%

0%

5%

10%

15%

20%

25%

Salary Level



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4.1.2 Qualifications

Figure 13: Highest secondary qualifications

Only 1% of staff has no matric qualification as evidenced by the results showing that these same officials only have grade 10 or grade 11 as their highest secondary qualifications.

Figure 14: Membership of professional bodies1

Figure 14 above indicates that the SCM support officials at provincial level and within

the National Treasury do not belong to any relevant professional body or association

regulating the profession of supply chain management such as Chartered Institute of

Purchasing and Supply (CIPS) which currently is the only professional body

1 A professional association for this study (also referred to as a professional body, professional organization or professional society, seeks to further a particular profession, the interest of individuals engaged in that profession and the public interest

73%25%

0%1%

Highest Secondary Qualifications

Matric

Grade 12 or Standard 10

Grade 11 or Standard 9

Grade 10 of Standard 8

12%0%0%0%1%0%0%0%1%

83%

CIPS

Computer Society

IMFO

Joint MaticulationBoard

SAICA

Professional Affiliation



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recognised by the South African Qualifications Authority (SAQA) as evidenced by only

12% of SCM officials belonging to CIPS.

Figure 15: Formal education completed

Figure 15 show that 61% of staff has a national diploma or undergraduate degree with

only 15% of such staff having a post graduate qualification.

Figure 16: Completed formal education qualification description

9%

30%

31%

9%

6%0%

16%

Completed Qualification

National Certificate

National Diploma

Bachelors Degree

Honours

Masters

Doctorate

Not Applicable

16%2%

0%7%

2%5%

0%2%

2%1%

2%4%

8%7%

0%2%2%

0%2%

1%1%

1%0%

11%17%

Accounting

BBBEE Programme

Business Management

Education

Information Technology

Logistics

Public Management

Public Policy

Purchasing Management

SCM

Social Science

Taxation

Not Aplicable

Completed Qualification Description



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Figure 16.1 Completed forma education qualification description in table format

DESCRIPTION TOTAL IN

% TOTAL IN VALUE

Accounting 16% 35

Auditing 2% 5

BBBEE Programme 0% 1

Business Administration 7% 16

Business Management 2% 5

Economics 5% 11

Education 0% 1

Human Resource 2% 5

Information Technology 2% 4

Law 1% 3

Logistics 2% 4

Other 4% 8

Public Management 8% 17

Public Administration 7% 16

Public Policy 0% 1

Public Relations 2% 5

Purchasing Management 2% 5

Risk Management 0% 1

SCM 2% 4

Secretarial 1% 3

Social Science 1% 2

Strategic SCM 1% 3

Taxation 0% 1

Unknown 11% 24

Not Applicable 17% 37

Total 100% 217

Figures 16 and 16.1 respectively show the breakdown in terms of formal description

of overall qualifications completed. This indicates that the total in value of

qualifications completed is Accounting which is 35 out of 217 courses and translates

into 16% with only 5% of staff has SCM qualifications including strategic SCM,

purchasing and logistics. Overall this information raises several interesting questions.

Firstly, does the information indicate that there are not enough SCM qualifications

offered by educational institutions?



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Why do specific Supply Chain Management qualifications have few enrolments, for

example, SCM, purchasing management and logistics?

Figure 17: Formal education interested in undertaking

DESCRIPTION TOTAL IN % TOTAL IN VALUE

Public Administration 5% 10

Accounting 5% 10

Auditing 1% 2

Business Administration 4% 8

Economics 1% 3

Human Resource 0% 1

Information Technology 0% 1

Law 4% 8

Logistics 0% 0

Marketing 1% 2

Not Applicable 53% 115

Other 3% 7

Procurement Management 0% 1

Project Management 1% 3

Public Management 2% 5

Purchasing Management 0% 1

Risk Management 1% 2

SCM 8% 17

Strategic SCM 0% 1

Unknown 9% 20

TOTAL 100 217

Figure 17 indicates that the majority of staff did not show much interest in terms of

the future studies. What is of interest is that only 8% of staff has shown an interest

in SCM qualifications.



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4.1.3 Supply Chain Management Training

Figure 18: Supply Chain Management training courses successfully

completed

Figure 18 above indicate that only 1% of staff has completed municipal SCM courses.

This raises questions with regard to the appropriate support to be provided to

Municipalities by provincial treasuries support function staff given the amount of

challenges at local government level. Only 12% of staff has completed SCM Risk

Management course and 1% of staff has completed Bid Committees (MFMA) course

respectively.

Only 10% of staff has completed an introductory course in SCM for Public Service.

12% of staff has completed a Demand Management course. 5% of staff has completed

Acquisition Management course. 3% of staff has completed Logistics Management

course. 3% of staff has completed Asset Management course.

22%

10%

3%

3%

4%

5%10%

1%

12%

10%

0%

12%

1%

0%

2%

2%1%

1%

0% 5% 10% 15% 20% 25%

Unknown

Supply Chain Management for the Public…

Logistics Management

Asset Management

Disposal Management

Acquisition Management

Bid Committees (PFMA)

Bid Committees (MFMA)

Supply Chain Risk Management

Contract Management (PFMA)

Contract Management (MFMA)Demand Management

Municipal Supply Chain Management

Supply Chain Performance Management

Conduct Initial Assessment for Strategic…

Develop a Sourcing Strategy

Execute a Sourcing Strategy

Training on the Revised Preferential…

Completed SCM Courses Provincial Level



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Figure 19: Supply Chain Management training courses provincial treasuries

staff would like to complete

Figure 19 shows that only a minority of staff are interested in undertaking SCM courses

focusing on municipalities. Few members of staff are interested in undertaking training

courses focusing on the various elements of the public sector SCM model.

24%6%

4%2%2%

6%5%

0%9%

6%1%

5%1%

6%5%

7%5%

5%0%

0% 5% 10% 15% 20% 25% 30%

Unknown

Logistics Management

Disposal Management

Bid Committees (PFMA)

Supply Chain Risk Management

Contract Management (MFMA)

Municipal Supply Chain Management

Conduct Initial Assessment for Strategic Sourcing

Execute a Sourcing Strategy

The Prevention, Detection and Combating of…

Interested CoursesProvincial level



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4.1.4 Skills Profile

Figure 20: Public Sector and Private sector Experience of officials

Figure 20 above shows that 32% of staff has been in the public service for more than

10 years whereas 62% of employees have less than 1 year in the private sector.

Figure 21: Private and Public Supply Chain Management Experience of officials

0%

13%

26%

32%

17%

12%

0%

62%

18%

7%

3%

0%

0%

9%

0% 20% 40% 60% 80%

Less than 1 Year

Between 1 year and 5 years

Between 6 years and 10 years

More than 10 years

More than 20 years

More than 35 years

Unknown

Number of Years ExperiencePublic Sector vs. Private Sector

Number ofyears inPrivate Sector

Number ofyears in PublicService

3%

25%

34%

27%

6%

4%

0%

76%

9%

4%

2%

0%

0%

9%

0% 20% 40% 60% 80% 100%

Less than 1 Year

Between 1 year and 5 years

Between 6 years and 10 years

More than 10 years

More than 20 years

More than 35 years

Unknown

Number of Years ExperiencePublic Sector SCM vs. Private Sector SCM

Number ofyears inPrivate SectorSCM

Number ofyears in PublicSector SCM



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An analysis of the public sector SCM number of experience versus public sector,

represented in figure 21 above, indicate that majority of staff has been in the public

sector between 6 years and 10 years. This shows that there is limited private sector

knowledge being transferred in to the public sector SCM at provincial treasuries

support units. SCM is not attracting enough private sector expertise to promote cross

pollination of ideas which could be good for both sectors.

Analysis of Provincial Treasuries and National Treasury Skills Profiles

Supply Chain Management officials providing support to departments, public entities

and municipalities on many issues that are related to supply chain management must

have the necessary skills and knowledge to carry such a function to amongst other

improve financial management, eliminate recurring unfavourable audit outcomes

emanating from the Auditor-General`s report year in year out. The SCM support

functions within the relevant treasuries must be able to fully empower clients and

ensure oversight through executing their functions.

Expert knowledge also forms a critical part in ensuring that such SCM support

functions are empowered to become the leading knowledge repository of best practice

in the supply chain management environment.

The Public Finance Management Act and the Municipal Finance Management Act

provide for the legislation framework in which public sector institutions must ensure

compliance. The SCM support functions must have the requisite skills to interpret and

apply the legislative framework and ensure compliance with all the prescripts that

relates to the supply Chain Management environment.

5. General Findings

Overall the analysis reveals the following regarding provincial and national SCM

support units:

Treasuries SCM support units are structured differently across the nine (9)

provinces;

Some provinces have SCM client support focusing on municipalities located

within Municipal Finance Management Act units which reside outside the

dedicated SCM support units;

There is a high vacancy rate in terms if phase 1 report which could have an

impact on the level of support provided to provincial departments and

municipalities;



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There is insufficient capacity in SCM support units to provide the appropriate

level of support required by municipalities in most provinces;

Not all SCM managers and practitioners have completed the phase 2

individual survey in relation to phase 1 organisational data survey and this

was beyond the control of team collecting the data;

The demographics of officials in terms of nationality, race, gender and

people with disabilities is in line with the national demographic profile of the

country;

Only 2% of officials are between 18 and 25 years of age. This provides an

opportunity for provincial treasuries to recruit young graduates who could

also form a pool of the internship programme which is represented at 0% in

terms of figure 8 above;

61% of staff is above the age of 36 and their job experience could be used

to provide on the job training for newly employed officials and existing

officials in municipalities. They could also be trained as coaches and

mentors;

Very few officials are aware that there is an SCM Professional Body and

Association which is useful to enhance their knowledge and experience

outside the government environment. This was ascertained from the actual

surveys completed and from the road shows conducted. The benefits of

belonging to a professional body or a relevant Association, amongst others

are: networking opportunities, broadening knowledge: education, attending

conferences and seminars, joining communities of practice and sharing

SCM good practice;

Although 76% of officials have tertiary qualifications there is lack of relevant

SCM academic qualifications;

There is inadequate uptake of opportunities for attending short term SCM

training courses; and

There are few SCM practitioners from the private sector joining provincial

treasuries.



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6. Conclusion

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.

From the surveys conducted, it is revealed that there are a number of important issues

which need immediate and urgent attention. Amongst others, some of these issues to

be addressed are: standardisation and implementation of SCM structures across all

spheres of government and provincial treasuries support units based on their strategic

plans and mandates.

The results of the survey provide a platform to prioritise the filling of critical vacant

posts, the development of relevant SCM academic qualifications, on the job training

initiatives, coaching and mentoring programmes at senior management level.

Adequate resources must therefore be mobilised to ensure the implementation of

these interventions, including allocation of adequate training budgets.

This also provides an opportunity to professionalise the SCM sector to be on par with

other financial management disciplines and host a public procurement colloquium in

order to address some of the challenges highlighted in this report.

The end.

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ANNEXURE 1

SUPPLY CHAIN MANAGEMENT BASELINE STUDY ROAD SHOWS

SCM BASELINE ROAD SHOWS

PROVINCIAL TREASURIES SCM SUPPORT UNITS No Name of the Provincial Treasuries and National Treasury Road Shows

Conducted Date

1 National Treasury √ 21/09/2015

2 Eastern Cape √ 18/11/2015

3 Gauteng √ 27/11/2015

4 Limpopo √ 26/11/2015

5 Mpumalanga X

6 North West √ 07/12/2015

7 Western Cape √ 30/11/2015

8 KwaZulu-Natal √ 03/12/2015

9 Free State √ 1/12/2015

10 Northern Cape X

ANNEXURE 2

SUPPLY CHAIN MANAGEMENT FUNCTIONS PER TREASURY

PROVINCIAL TREASURIES SUPPLY CHAIN MANAGEMENT SUPPORT UNITS BASELINE STUDY PHASE 1 & 2

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Description Filled:SCM Policy,

Norms & Standards

Vacant: SCM

Policy, Norms &

Standards

Filled: SCM

Governance,

Monitoring &

Compliance

Vacant : SCM Governance, Monitoring & Compliance

Filled: Strategic

Procurement

Vacant : Strategic

Procurement

Filled: Transvers

al Contractin

g

Vacant: Transvers

al Contractin

g

Filled: SCM Client

Support: Provincial Departmen

ts

National Treasury 12 2 10 4 5 2 29 6 0

Limpopo PT 10 8 1 1 0 0 7 4 23

KwaZulu-Natal PT 3 0 21 3 0 0 0 2 0

North West PT 1 4 3 4 0 0 9 3 0

Mpumalanga PT 0 0 3 6 0 0 1 0 21

Eastern Cape PT 7 2 0 0 9 1 0 0 8

Northern Cape PT 0 4 4 1 0 4 0 0 0

Gauteng PT 7 0 6 0 3 0 1 0 1

Western Cape PT 0 0 4 1 2 1 0 0 4

Free State PT 2 0 3 2 0 0 0 0 1

Total

42 20 55 22 19 8 47 15

58

PROVINCIAL TREASURIES SUPPLY CHAIN MANAGEMENT SUPPORT UNITS BASELINE STUDY PHASE 1 & 2

Page 27 of 27

Description Vacant: SCM

Client Support: Provincia

l Departme

nts

Filled: SCM Client Support:

Delegated Municipalities

Vacant: SCM Client

Support: Delegated Municipalit

ies

Filled: SCM Information

& Communica

tion

Vacant: SCM

Information &

Communication

Filled: Other Vacant: Other

National Treasury 0 0 0 2 2 10 3

Limpopo PT 8 0 0 0 0 0 0

KwaZulu-Natal PT 0 0 0 9 2 7 0

North West PT 0 0 0 0 0 16 3

Mpumalanga PT 3 0 0 0 0 2 0

Eastern Cape PT 3 0 0 0 0 0 0

Northern Cape PT 3 0 2 1 4 0 0

Gauteng PT 0 2 0 0 0 1 0

Western Cape PT 1 0 0 0 0 1 3

Free State PT 0 0 0 0 0 0 0

Total 18 2 2 12 8 37 9

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PRELIMINARY ANALYSIS REPORT - National Treasury. Supply Chain... · preliminary analysis report ... supply chain management baseline study road shows ... kwazulu-natal pt 47 40 7