Evaluating factors affecting the effectiveness of the tender system In Buffalo City Metropolitan Municipality
- Authors: Gastile, Nosikhumbuzo
- Date: 2024-04
- Subjects: Contractors -- South Africa , Government purchasing , Business logistics -- South Africa -- Eastern Cape
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/64986 , vital:74001
- Description: The tender system is a complex process requiring attention to detail; when followed correctly, it is advantageous for both the vendor/service provider and the customer (public or private sector). However, many factors affect it and end up contributing to its ineffectiveness. This study mentions political interference and bureaucracy, maladministration, fraud, corruption, flawed tender practices, delay in payments and lack of skills by tender administrators. Against this background, the primary objective of this study is to contribute to improving the tender system in Buffalo City Municipality by investigating the factors that make it ineffective. A quantitative research design was used, and a sample was taken from contractors carrying out work for Buffalo City Metropolitan Municipality in the Eastern Cape Province. Convenience sampling was used while conducting this study. This study’s demographic data is analysed in percentage form using simple descriptive statistics. Once data had been gathered from the independent and dependent variables, the researcher used it to draw a conclusion and inferences using inferential statistics to show relationships between multiple variables to generalise results and make predictions. A multiple regression analysis was also employed. , Thesis (MBA) -- Faculty of Business and Economic Sciences, Business School, 2024
- Full Text:
- Date Issued: 2024-04
- Authors: Gastile, Nosikhumbuzo
- Date: 2024-04
- Subjects: Contractors -- South Africa , Government purchasing , Business logistics -- South Africa -- Eastern Cape
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/64986 , vital:74001
- Description: The tender system is a complex process requiring attention to detail; when followed correctly, it is advantageous for both the vendor/service provider and the customer (public or private sector). However, many factors affect it and end up contributing to its ineffectiveness. This study mentions political interference and bureaucracy, maladministration, fraud, corruption, flawed tender practices, delay in payments and lack of skills by tender administrators. Against this background, the primary objective of this study is to contribute to improving the tender system in Buffalo City Municipality by investigating the factors that make it ineffective. A quantitative research design was used, and a sample was taken from contractors carrying out work for Buffalo City Metropolitan Municipality in the Eastern Cape Province. Convenience sampling was used while conducting this study. This study’s demographic data is analysed in percentage form using simple descriptive statistics. Once data had been gathered from the independent and dependent variables, the researcher used it to draw a conclusion and inferences using inferential statistics to show relationships between multiple variables to generalise results and make predictions. A multiple regression analysis was also employed. , Thesis (MBA) -- Faculty of Business and Economic Sciences, Business School, 2024
- Full Text:
- Date Issued: 2024-04
Specific service level expectations that automotive manufacturers have of third party logistics service providers in the Eastern Cape Province
- Authors: Pillay, Shandran
- Date: 2018
- Subjects: Business logistics -- South Africa -- Eastern Cape , Delivery of goods -- South Africa -- Eastern Cape -- Management Physical distribution of goods -- South Africa -- Eastern Cape -- Management
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/23108 , vital:30422
- Description: Very few business enterprises, whether as a service provider or manufacturer, operate in isolation. Most business enterprises have suppliers from whom they acquire their resource inputs (inbound processes), and customers to whom they supply (outbound processes) their outputs. These processes include logistics functions such as transportation, warehousing, information technology, packaging and design activities. In an effort to reduce costs, both these inbound and outbound processes are often outsourced to a third party when the business enterprise finds it too costly to do the processes by itself. Logistics outsourcing refers to an arrangement whereby a logistics service provider, called a third party logistics (3PL) service providers, performs services for a firm that could be, or have previously been, provided in-house. 3PL service providers have a strategic role to play especially in the business of automotive manufacturing firms. They act as external suppliers of logistical services that ensure the efficient and effective flow of resource inputs into the firm as well as final products to the end customer. Low cost, despite being a critical success factor, is not the only expectation. 3PL service providers are also expected to be flexible and versatile in its operations, and to cater for the needs of the manufacturing business strategy. Millions of Rands are spent on 3PL service providers, with the hope and belief that they will streamline business processes. Outsourcing of the logistics division to 3PL service providers reduces the costs of getting the right product to the right place for the consumer. Automotive manufacturing firms are not willing to add any costly service to the commodity which is not perceived as value-adding by the customer. Customers have always been classified as value conscious, but in recent times of economic difficulty and uncertainty, this has become even more apparent. This trend has caused many automotive manufacturing firms to prioritise cost saving, and logistics is no exception. The main objective of this study was to investigate the specific service level expectations that automotive manufacturing firms have of third party logistics (3PL) service providers in the Eastern Cape Province. In support of the main objective, it was necessary to source the reasons why automotive manufacturing firms in the Eastern Cape Province find it important to trade with 3PL service providers and to determine whether or not 3PL service providers are meeting the expectations of automotive manufacturing firms in the Province. Furthermore, the study set out to highlight the major problems currently associated with 3PL service providers, as well as to determine the consequences of unacceptable performance levels provided by 3PL service providers. Lastly, to identify the action plans that automotive manufacturing firms have to bring 3PL service providers in line with their expectations. As a starting point to the study, a literature review was undertaken which revealed that the supply chain philosophy is an important operation in any manufacturing environment. In order to satisfy the end customer, business organisations need to ensure that all supply chain operations are completed in the most efficient and effective manner. In addition, modern business strategies, also referred to as international trends, need to be practiced by principal manufacturing organisations in their quest to be more efficient, effective, competitive and successful in an ever-changing business environment. In order to achieve supply chain success, principal organisations need to ensure that all supply chain partners, particularly 3PL service providers, are aligned with the goals of the principal organisation’s supply chain. The review highlighted that business organisations need to review their selection methods for 3PL service providers on a continuous basis and only select providers that can tailor their service offerings according to the principal organisation’s needs. Therefore, in order for automotive manufactures to realise more potential from their 3PL service providers in the future, issues such as early 3PL service provider involvement, cost saving initiatives from 3PL service providers and 3PL service provider development, will become more crucial. Lastly, the review showed that the automotive industry plays a key role in developing countries as it is a significant contributor to GDP and provides a source of employment, which is much needed in South Africa. However, automotive logistics is a highly complex field, demanding considerable capital resources. One of the most important roles of 3PL service providers in the automotive industry is the management of cargos of goods within the supply chain. As a result, the automotive industry is becoming more based on a system of modularity, through a system of modular production. Logistics outsourcing is receiving increased attention, since it is a sector in which productivity and efficiency improvements are possible in order to lower operating costs, while improving customer services. However, 3PL service providers face significant barriers in developing countries such as stringent legal regulations, poor infrastructure and equipment, as well as a lack of competent manpower for efficient operations. This research was performed mainly within the positivist research paradigm of causality, since it was held by the researcher that there should be a clear causal relationship between the variables that may be observed to answer the research questions of this study. A simple random probability sample of participants from the research population of automotive manufacturing firms in the Eastern Cape Province was gathered, and the questions posed in the questionnaire of this study were structured using both Likert-scale and open-ended questions. In order to analyse the data, two popular quantitative data analysis techniques of descriptive statistical analysis and inferential statistical analysis were employed, with particular techniques of Correlation Analysis, Cronbach’s alpha, and tests for normality being performed. The empirical study revealed that the largest group was employed in the assembly sector, and the vast majority of the respondents made use of 3PL service providers for both sending and receiving components and parts. Almost all of the respondents outsourced transportation services to 3PL service providers. Most respondents were satisfied or very satisfied with their transportation 3PL service providers; but fewer were satisfied, and some were dissatisfied or very dissatisfied, with warehousing and VAS 3PL service providers. The range of mean values across all of the ‘consequences’ that had been caused due to inferior 3PL performance was concisely grouped, indicating that no single issue stood out as far more or less of a problem than the others; though three common problems noted were that respondents had not received parts and components on time, experienced production stoppages; and higher costs had impacted their organisations negatively. The Cronbach alphas of each of the transportation, warehousing, VAS and consequences data sets, combined, indicated that the data was reliable, and had suitable internal consistencies. The main corrective actions to be taken by automotive manufactures against 3PL service providers who fail to perform as promised are to impose a penalty as per the terms and conditions of the contract signed between the automotive manufacturing firm and the 3PL service provider or to cancel the contract and look for an alternative 3PL service provider if they do not have a back-up service provider.
- Full Text:
- Date Issued: 2018
- Authors: Pillay, Shandran
- Date: 2018
- Subjects: Business logistics -- South Africa -- Eastern Cape , Delivery of goods -- South Africa -- Eastern Cape -- Management Physical distribution of goods -- South Africa -- Eastern Cape -- Management
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/23108 , vital:30422
- Description: Very few business enterprises, whether as a service provider or manufacturer, operate in isolation. Most business enterprises have suppliers from whom they acquire their resource inputs (inbound processes), and customers to whom they supply (outbound processes) their outputs. These processes include logistics functions such as transportation, warehousing, information technology, packaging and design activities. In an effort to reduce costs, both these inbound and outbound processes are often outsourced to a third party when the business enterprise finds it too costly to do the processes by itself. Logistics outsourcing refers to an arrangement whereby a logistics service provider, called a third party logistics (3PL) service providers, performs services for a firm that could be, or have previously been, provided in-house. 3PL service providers have a strategic role to play especially in the business of automotive manufacturing firms. They act as external suppliers of logistical services that ensure the efficient and effective flow of resource inputs into the firm as well as final products to the end customer. Low cost, despite being a critical success factor, is not the only expectation. 3PL service providers are also expected to be flexible and versatile in its operations, and to cater for the needs of the manufacturing business strategy. Millions of Rands are spent on 3PL service providers, with the hope and belief that they will streamline business processes. Outsourcing of the logistics division to 3PL service providers reduces the costs of getting the right product to the right place for the consumer. Automotive manufacturing firms are not willing to add any costly service to the commodity which is not perceived as value-adding by the customer. Customers have always been classified as value conscious, but in recent times of economic difficulty and uncertainty, this has become even more apparent. This trend has caused many automotive manufacturing firms to prioritise cost saving, and logistics is no exception. The main objective of this study was to investigate the specific service level expectations that automotive manufacturing firms have of third party logistics (3PL) service providers in the Eastern Cape Province. In support of the main objective, it was necessary to source the reasons why automotive manufacturing firms in the Eastern Cape Province find it important to trade with 3PL service providers and to determine whether or not 3PL service providers are meeting the expectations of automotive manufacturing firms in the Province. Furthermore, the study set out to highlight the major problems currently associated with 3PL service providers, as well as to determine the consequences of unacceptable performance levels provided by 3PL service providers. Lastly, to identify the action plans that automotive manufacturing firms have to bring 3PL service providers in line with their expectations. As a starting point to the study, a literature review was undertaken which revealed that the supply chain philosophy is an important operation in any manufacturing environment. In order to satisfy the end customer, business organisations need to ensure that all supply chain operations are completed in the most efficient and effective manner. In addition, modern business strategies, also referred to as international trends, need to be practiced by principal manufacturing organisations in their quest to be more efficient, effective, competitive and successful in an ever-changing business environment. In order to achieve supply chain success, principal organisations need to ensure that all supply chain partners, particularly 3PL service providers, are aligned with the goals of the principal organisation’s supply chain. The review highlighted that business organisations need to review their selection methods for 3PL service providers on a continuous basis and only select providers that can tailor their service offerings according to the principal organisation’s needs. Therefore, in order for automotive manufactures to realise more potential from their 3PL service providers in the future, issues such as early 3PL service provider involvement, cost saving initiatives from 3PL service providers and 3PL service provider development, will become more crucial. Lastly, the review showed that the automotive industry plays a key role in developing countries as it is a significant contributor to GDP and provides a source of employment, which is much needed in South Africa. However, automotive logistics is a highly complex field, demanding considerable capital resources. One of the most important roles of 3PL service providers in the automotive industry is the management of cargos of goods within the supply chain. As a result, the automotive industry is becoming more based on a system of modularity, through a system of modular production. Logistics outsourcing is receiving increased attention, since it is a sector in which productivity and efficiency improvements are possible in order to lower operating costs, while improving customer services. However, 3PL service providers face significant barriers in developing countries such as stringent legal regulations, poor infrastructure and equipment, as well as a lack of competent manpower for efficient operations. This research was performed mainly within the positivist research paradigm of causality, since it was held by the researcher that there should be a clear causal relationship between the variables that may be observed to answer the research questions of this study. A simple random probability sample of participants from the research population of automotive manufacturing firms in the Eastern Cape Province was gathered, and the questions posed in the questionnaire of this study were structured using both Likert-scale and open-ended questions. In order to analyse the data, two popular quantitative data analysis techniques of descriptive statistical analysis and inferential statistical analysis were employed, with particular techniques of Correlation Analysis, Cronbach’s alpha, and tests for normality being performed. The empirical study revealed that the largest group was employed in the assembly sector, and the vast majority of the respondents made use of 3PL service providers for both sending and receiving components and parts. Almost all of the respondents outsourced transportation services to 3PL service providers. Most respondents were satisfied or very satisfied with their transportation 3PL service providers; but fewer were satisfied, and some were dissatisfied or very dissatisfied, with warehousing and VAS 3PL service providers. The range of mean values across all of the ‘consequences’ that had been caused due to inferior 3PL performance was concisely grouped, indicating that no single issue stood out as far more or less of a problem than the others; though three common problems noted were that respondents had not received parts and components on time, experienced production stoppages; and higher costs had impacted their organisations negatively. The Cronbach alphas of each of the transportation, warehousing, VAS and consequences data sets, combined, indicated that the data was reliable, and had suitable internal consistencies. The main corrective actions to be taken by automotive manufactures against 3PL service providers who fail to perform as promised are to impose a penalty as per the terms and conditions of the contract signed between the automotive manufacturing firm and the 3PL service provider or to cancel the contract and look for an alternative 3PL service provider if they do not have a back-up service provider.
- Full Text:
- Date Issued: 2018
Perceptions in the implementation of supply chain management processes : the case of the Department of Local Government and Traditional Affairs in the Eastern Cape
- Authors: Aplom, Busisiwe
- Date: 2014
- Subjects: Business logistics -- South Africa -- Eastern Cape , Government purchasing -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: vital:8346 , http://hdl.handle.net/10948/d1020781
- Description: When the African National Congress (ANC) took office in 1994 it introduced various policies that would govern budgetary and financial reforms in South Africa. The main objective was to modernize the management of the public sector. Even though government Departments have started implementing the Supply Chain Management strategies, there are still some challenges and deficiencies that hinder appropriate implementation. The key research objectives of the study is to investigate and evaluate the implementation of Supply Chain Management in service delivery with specific focus in procurement processes of goods and services in the Eastern Cape Department of Local Government and Traditional Affairs This study has demonstrated perceptions in the implementation of Supply Chain Management (SCM) within the Department of Local Government and Traditional Affairs in the Eastern Cape Province, South Africa. The overwhelming majority of participants have shown dissatisfaction with the implementation of SCM. Service providers argue that there is no opportunity for them to develop as Small, Micro and Medium Enterprises (SMMEs) and only those service providers who are fully developed benefit from SCM. The study intends to establish and highlight the challenges that the Eastern Cape Department of Local Government and Traditional Affairs is presently faced with in regard to implementation procurement processes among staff members, managers and service providers This study is mainly qualitative but also exposes the reader to the quantitative research method
- Full Text:
- Date Issued: 2014
- Authors: Aplom, Busisiwe
- Date: 2014
- Subjects: Business logistics -- South Africa -- Eastern Cape , Government purchasing -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: vital:8346 , http://hdl.handle.net/10948/d1020781
- Description: When the African National Congress (ANC) took office in 1994 it introduced various policies that would govern budgetary and financial reforms in South Africa. The main objective was to modernize the management of the public sector. Even though government Departments have started implementing the Supply Chain Management strategies, there are still some challenges and deficiencies that hinder appropriate implementation. The key research objectives of the study is to investigate and evaluate the implementation of Supply Chain Management in service delivery with specific focus in procurement processes of goods and services in the Eastern Cape Department of Local Government and Traditional Affairs This study has demonstrated perceptions in the implementation of Supply Chain Management (SCM) within the Department of Local Government and Traditional Affairs in the Eastern Cape Province, South Africa. The overwhelming majority of participants have shown dissatisfaction with the implementation of SCM. Service providers argue that there is no opportunity for them to develop as Small, Micro and Medium Enterprises (SMMEs) and only those service providers who are fully developed benefit from SCM. The study intends to establish and highlight the challenges that the Eastern Cape Department of Local Government and Traditional Affairs is presently faced with in regard to implementation procurement processes among staff members, managers and service providers This study is mainly qualitative but also exposes the reader to the quantitative research method
- Full Text:
- Date Issued: 2014
To investigate and evaluate the implementation of the supply chain management in service delivery with specific focus on procurement processes of goods and services in the head office of the Eastern Cape department of health
- Authors: Mnguni, Nombuyiselo
- Date: 2012
- Subjects: Business logistics -- South Africa -- Eastern Cape -- Management , Business logistics -- South Africa -- Eastern Cape , Management -- Procurement , Supply and demand
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8572 , http://hdl.handle.net/10948/1599 , Business logistics -- South Africa -- Eastern Cape -- Management , Business logistics -- South Africa -- Eastern Cape , Management -- Procurement , Supply and demand
- Description: Supply Chain Management is a well recognized managerial tool and government initiative, primarily aimed at improving all the aspects of the procurement activities in government organizations or any type of the sector. It focuses on meeting the needs of the service providers as well as of the customers. In 1994, South African Government came up with new initiatives to manage its budget and finance resources to meet the needs of the people. One of the new initiatives that the new Government introduced was the Supply Chain Management (SCM). The Constitution of the Republic of South Africa, Act No.108 of 1996, as amended regulates procurement through Section 217. The statutes states that “217(1) when an Organ of State in the national, provincial or local sphere of government, or any institution identified in national legislation, contracts for goods or services, it must do so in accordance with a system which is fair, equitable, transparent, competitive and cost-effective The procurement reform processes were supported by the introduction of a number of legislative measures, including the adoption of the Public Financial Management Act (PFMA) and the Preferential Procurement Policy Framework Act (PPPFA). Public Finance Management Act (PFMA) is a financial act that was developed in 1999 to reform the public financial management of South Africa. The Act promotes the objective of good financial management in order to maximise delivery through the efficient and effective use of limited resources. Public Financial Management Act (PFMA) emphasizes on efficiency, transparency and economic utilization of public funds. The Treasury Regulations 16.5.3 states that, ‘when procuring goods and services, the procurement procedures must be in accordance with a system that is fair, equitable, transparent, competitive and cost-effective. Even though government departments have started implementing the Supply Chain Management strategies, there are still some challenges and deficiencies that hinder appropriate implementation. There are some deficiencies in tender award systems, ineffectiveness of SCM training materials, lack of communication between management and SCM or implementing staff as a result the implementing staff is not aware of the organization’s goals regarding supply chain management activities. Lack of monitoring, evaluation and reporting is also another challenge. Due to these challenges, the Head Office of the Eastern Cape Department of Health had incurred some expenses in trying to address these yet the Supply Chain Management has little impact in improving the service delivery. The key research objective of this study is to investigate and evaluate the implementation of Supply Chain Management in service delivery with specific focus in procurement processes of goods and services in Head Office of Eastern Cape Department of Health. The study intends to establish and highlight the challenges that the Head Office of the Eastern Cape Department of Health is presently faced with in regard to implementation of the Supply Chain Management and the impact it has in service delivery. Data gathering techniques which include interviews and questionnaires had been used. The objectives, methodology and results of the study are presented. The conclusions and recommendations had been made with the basis that they will assist the department in improving the implementation of the Supply Chain Management which will have a positive impact in the service delivery. Further steps needs to be taken by the Provincial Treasuries in assisting department to improve in the implementation of the Supply Chain Management. Further research conduct is recommended for all the institutions of the department of Health as this study was focusing on Head Office only.
- Full Text:
- Date Issued: 2012
- Authors: Mnguni, Nombuyiselo
- Date: 2012
- Subjects: Business logistics -- South Africa -- Eastern Cape -- Management , Business logistics -- South Africa -- Eastern Cape , Management -- Procurement , Supply and demand
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8572 , http://hdl.handle.net/10948/1599 , Business logistics -- South Africa -- Eastern Cape -- Management , Business logistics -- South Africa -- Eastern Cape , Management -- Procurement , Supply and demand
- Description: Supply Chain Management is a well recognized managerial tool and government initiative, primarily aimed at improving all the aspects of the procurement activities in government organizations or any type of the sector. It focuses on meeting the needs of the service providers as well as of the customers. In 1994, South African Government came up with new initiatives to manage its budget and finance resources to meet the needs of the people. One of the new initiatives that the new Government introduced was the Supply Chain Management (SCM). The Constitution of the Republic of South Africa, Act No.108 of 1996, as amended regulates procurement through Section 217. The statutes states that “217(1) when an Organ of State in the national, provincial or local sphere of government, or any institution identified in national legislation, contracts for goods or services, it must do so in accordance with a system which is fair, equitable, transparent, competitive and cost-effective The procurement reform processes were supported by the introduction of a number of legislative measures, including the adoption of the Public Financial Management Act (PFMA) and the Preferential Procurement Policy Framework Act (PPPFA). Public Finance Management Act (PFMA) is a financial act that was developed in 1999 to reform the public financial management of South Africa. The Act promotes the objective of good financial management in order to maximise delivery through the efficient and effective use of limited resources. Public Financial Management Act (PFMA) emphasizes on efficiency, transparency and economic utilization of public funds. The Treasury Regulations 16.5.3 states that, ‘when procuring goods and services, the procurement procedures must be in accordance with a system that is fair, equitable, transparent, competitive and cost-effective. Even though government departments have started implementing the Supply Chain Management strategies, there are still some challenges and deficiencies that hinder appropriate implementation. There are some deficiencies in tender award systems, ineffectiveness of SCM training materials, lack of communication between management and SCM or implementing staff as a result the implementing staff is not aware of the organization’s goals regarding supply chain management activities. Lack of monitoring, evaluation and reporting is also another challenge. Due to these challenges, the Head Office of the Eastern Cape Department of Health had incurred some expenses in trying to address these yet the Supply Chain Management has little impact in improving the service delivery. The key research objective of this study is to investigate and evaluate the implementation of Supply Chain Management in service delivery with specific focus in procurement processes of goods and services in Head Office of Eastern Cape Department of Health. The study intends to establish and highlight the challenges that the Head Office of the Eastern Cape Department of Health is presently faced with in regard to implementation of the Supply Chain Management and the impact it has in service delivery. Data gathering techniques which include interviews and questionnaires had been used. The objectives, methodology and results of the study are presented. The conclusions and recommendations had been made with the basis that they will assist the department in improving the implementation of the Supply Chain Management which will have a positive impact in the service delivery. Further steps needs to be taken by the Provincial Treasuries in assisting department to improve in the implementation of the Supply Chain Management. Further research conduct is recommended for all the institutions of the department of Health as this study was focusing on Head Office only.
- Full Text:
- Date Issued: 2012
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