An investigation into the effectiveness of public entities’ procurement practices

Abstract

The delivery of services through the procurement of goods and services requires proper strategic leadership and management processes. Inappropriate planning, under-spending of budgets and ineffective procurement form part of the root causes of poor service delivery, as this restricts the movement of resources to the right places. This study identified the leading procurement practices as: procurement strategy and leadership, the procurement process, human resource management, procurement information systems, supplier management and procurement performance management. These practices were then tested in public entities, mainly in Gauteng Province, South Africa, to determine the extent to which they are applied. The study found that there is a major divide between the perception of the level of application of the leading practices and actual implementation. Processes, skills, performance management, information technology (IT) systems and supplier management are applied inadequately or inappropriately. Most entities thus show a poor understanding of customer needs and there seems to be a general lack of customer focus. The study highlighted the best practice areas in which public entities are able to focus their efforts to better achieve excellent customer service and thus service delivery.