Supply Chain Management Programme

• Legislative requirements
• Demand management structures/role-players
• Identification of the future needs for goods, works and services as part of the planning and budgeting process
• Developing  specifications & terms of reference
• Preparation of cost-estimates for planning and budgeting purposes
• Conducting an expenditure analysis based on past expenditure
• Conducting an industry analysis
• Conducting a commodity analysis by considering alternatives
• Determining the frequency of the needs for goods, works and services
• Identifying critical delivery dates
• SCM Risk and Performance Management related to Demand Management

• Legislative requirements
• Acquisition management structures/role-players
• Assessment of the market
• Sourcing strategy
• Acquisition management methods
• Bidding methods
• Specific considerations in the bidding process
• The bidding process
• Appointment of consultants
• Construction procurement
• Contract management and administration
• SCM Risk and Performance Management related to Acquisition Management

• Legislative requirements
• Structures and role-players supporting logistics management
• Coding of items
• Setting of inventory levels
• Placing of orders
• Receiving and distribution of material
• Stores and warehouse management
• Expediting orders
• Transport and fleet management
• Assessment of vendor/supplier performance
• SCM Risk and Performance Management related to Logistics Management

• Legislative requirements
• Disposal management structures/role-players
• Obsolescence planning or calculation of depreciation rates
• Establishment and maintenance of the database of all redundant material
• Stocktaking or asset audit/verification to determine potential re-use of items
• Disposal Strategy
• The physical disposal of items
• SCM Risk and Performance Management related to Logistics Management

2.      SCM Risk Management structures/role-players

3.      SCM Risk Management component includes:

• Identification of procurement risk on a case-by-case basis
• Allocation of risks to the party best equipped to manage it
• The entity bearing the costs of risks where the cost of transferring (insurance) is greater than that of retaining the risk
• Proactive risk management and adequate provision for coverage of residual risks
• Assignment of relative risks to the contracting parties through clear and unambiguous contract documentation

2.      SCM Performance Management structures/role-players

3.      SCM Performance Management components:

• Achievement of institutional goals;
• Compliance to norms and standards;
• The extent of savings generated;
• The efficiency of the stores;
• Cost variances per item;
• Contract breach by vendors/suppliers;
• Cost efficiency of the procurement process, including the cost of the process;
• Consistency of the supply chain objectives with the government’s broader policy focus;
• The extent of material construction standards alignment with international best practice
• Observing the Constitutional principle of co-operative governance
• Promoting reduction of local economic disparities