Revolution of South African public procurement in the Industry 4.0 era

Abstract

Background: Public procurement in South Africa is challenged by conventional methods that pave the way for human interference resulting in fraud and corruption, delays, unaccountability and poor performance of the value chain in the procurement process.

Objectives: This study aimed to investigate the Industry 4.0 capabilities for public procurement improvement. To address the challenges presented by the traditional manual procurement systems, the study embarked on a transformative journey by identifying the prospects and benefits of Industry 4.0 technologies in public procurement in South Africa, and the significance and application thereof.

Method: The study followed a six-step qualitative research methodology of content and thematic analysis which facilitated an understanding of the procurement process in South Africa and how it can be automated using Industry 4.0 technologies.

Results: The study revealed that Industry 4.0 technologies are crucial as they present digitalisation opportunities through platforms such as e-design, e-inform, e-sourcing, e-evaluation and e-contract. The platform will improve the process, encourage legislation compliance and achieve its goals as outlined in the constitution and Public Finance Management Act of 1996.

Conclusion: Implementing digital procurement will assist the government in achieving its policy requirements of value for money, open and effective competition, ethics and fair dealings, accountability and reporting, and equity. The technologies represent a strategic response to the challenges facing public procurement.

Contribution: The study contributed to the body of knowledge by presenting the prospects and benefits of Industry 4.0 technologies. In addition, it highlighted the significance and application to the South African public sector.