Supply Chain Management

The office of the Senior Manager: Supply Chain Management (SCM) is responsible for the procuring of goods and services needed by Overstrand Municipality to ensure service delivery.

The Objectives of Supply Chain Management are to:

give effect to the provisions of the Constitution, 1996;
give effect to the provisions of the MFMA, 2003;
transform outdated procurement and provisioning practices into an integrated SCM function;
ensure that SCM forms an integral part of the financial management system of the municipality;
make significant improvement to financial management in the broader public sector;
create a common understanding and interpretation of government’s preferential procurement policy objectives;
promote consistency in respect of supply chain management policy and other related policy initiatives in Government; and
align with global trends and ensure that South Africa adheres to international best practices.

The elements of Supply Chain Management, as incorporated into Overstrand Municipality’s SCM Policy, are as follows:

1.   Demand Management
This is the beginning of the supply chain management process and forms part of the strategic planning of the municipality. The municipality will identify resources required to support its commitments and that such resources are delivered at the correct time, place, price, quantity and quality.
2.   Acquisition Management
This is the management of procurement by the municipality. Acquisition management determines the process to be applied when procuring the needed goods and services; including however the market will be approached, bid documentation to be used, how bids will be evaluated and the contract documentation to be signed.
3.   Logistics Management
This aspect addresses the setting of inventory level, receiving and distribution of goods, stores and warehouse management, transport management, vendor performance, maintenance and contract administration.
4.   Performance Management
This is the monitoring process, undertaking a retrospective analysis to determine whether the proper processes have been followed and whether the desired objectives were achieved.
It is the responsibility of the office of the Senior Manager: Supply Chain Management that these objectives and elements of SCM are adhered to and implemented; thereby ensuring a sound, sustainable and accountable supply chain system which is fair, equitable, transparent, competitive and cost effective.