How the 2015 budget will address the constraints of efficient government procurement

| 0 Comments

 

Parliament.jpgAs much as 45% of the proposed R1.2-trillion budget could be procured from third parties, said Dr Dinesh Kumar, Head of Supply Chain and Procurement consulting at KPMG.


Considering the level of expenditure in question, it was necessary that government improved the efficiency of its purchasing, said Dr Kumar, who was speaking at an industry round table on the procurement elements contained within the budget speech.


He outlined some initiatives that Government has put into action.


Cabinet has approved that all Accounting Officers be required to include supply chain metrics in their performance scorecards. Furthermore, Accounting Officers must engage with the supply chain function at a strategic level.


The Office of the Chief Procurement Officer (OCPO) has further introduced common standards and new technologies to support work initiatives and to enhance the skills of personnel.


Dr Kumar indicated that the various initiatives appear to be centre-led.


“Government is not aiming to centralise procurement, rather it is trying to make more efficient the repetitive tasks that happen in every department.”


The goal is to collate de-centralised processes into one so that departments can focus on critical procurement tasks rather than administrative tasks. For example, a vendor will register on Government’s supplier database only once.


Similarly Government has proposed the use of an e-Tendering platform through which all tenders are published. “It would align all departments and create efficiencies and visibility in the supply chain system,” said Dr Kumar.


However, aside from issues of technology and compliance, Government also feels the burden of a lack of skills. “The proposed centre-led initiatives will not be effective if the skills are not there. Skills remain the biggest constraint to these initiatives,” noted Kumar.


“In the short term, to stem value leakage and bridge the efficiency gap quickly, I suggest a top-down change brought about through high-level interventions that target senior level personnel who would then lead Government departments,” said Kumar. “In the long term we need to enhance the [skills] base by creating education programmes and training interventions to build the fundamental knowledge of personnel.”


Consultants KPMG and the CIPS hosted the round table.
 

Leave a comment


 

 

Career opportunites

Planner

  • <500 000 Gauteng Operations, Planning & Inventory Supply Chain
Are you looking for new career opportunities as

Procurement Specialist

  • >500 000 Gauteng Procurement Officer / Specialist Strategic Sourcing Supplier / Business Development
As a specialist Supply Chain recruiter, I am

Logistics Controller

  • <500 000 Gauteng Logistics & Warehousing Procurement Officer / Specialist
Seeking dynamic up and coming candidates looking for

Supply Chain Manager

  • >500 000 Permanent Procurement Management Supply Chain Western Cape
As a specialist Supply Chain recruiter, I am

Business Process Specialist

  • <500 000 Gauteng Procurement Consultant Procurement Officer / Specialist Supply Chain
A company within the financial services sector is

LOC Procurement Manager

  • Gauteng Permanent Procurement Management Procurement Officer / Specialist
Your Responsibilities: Job Purpose To be the interface ...More

Account Manager

  • >500 000 Procurement Officer / Specialist Supplier / Business Development Western Cape
Key Performance Areas:• To ensure that all aspects

Consultant

  • >500 000 Gauteng Procurement Consultant Strategic Sourcing Supply Chain
Key Performance Areas:• You'll be concerned primarily with

Commercial Buyer

  • <500 000 Buyer Contracts Procurement Officer / Specialist Western Cape
A well-known Mining company is seeking the services

Technical Buyer

  • <500 000 Buyer Contracts Procurement Officer / Specialist Western Cape
A well-known Mining company is seeking the services

Business Development Executive

  • >500 000 Gauteng Supplier / Business Development
A retail solutions company is seeking a New

Financial Manager

  • >500 000 Contract Operations, Planning & Inventory Procurement Management Western Cape
Looking for an unemployed CA (SA) in Cape

Chief Financial Officer

  • >500 000 Gauteng Operations, Planning & Inventory Procurement Management
An exciting opportunity exists for a CFO with

Procurement Consultant

  • >500 000 Gauteng Procurement Officer / Specialist Strategic Sourcing
Key Performance Areas: A profound knowledge of sourcing

Commodity Specialist: IT

  • >500 000 Commodities Gauteng Procurement Officer / Specialist
Key Performance Areas:• Effectively applies acquired technical/functional skills

Senior Consultant

  • >500 000 Gauteng Projects / Category Management Supplier / Business Development
Key Performance Areas:• Adheres to best practice processes

Logistics Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Procurement Management
Key Performance Areas:• Manage warehousing and distribution 3PL's

Head of Franchise Network

  • >500 000 Contracts Operations, Planning & Inventory Western Cape
The opportunity to work for a multinational retail

National Driver Manager

  • >500 000 Analyst Contracts Logistics & Warehousing Operations, Planning & Inventory Western Cape
The opportunity for an extraordinary individual to join

Commodity Specialist: Industries

  • >500 000 Commodities Gauteng Procurement Officer / Specialist
Key Performance Areas:• Under the guidance of the