Views of stakeholders on the application of procurement practices for the betterment of the commuter bus industry, Gauteng

Abstract

Background: In South Africa (SA), procurement is seen as a strategic tool for socio-economic development, and is guided by the Supply Chain Management Policy Framework developed in 2003. The commuter bus sector is complex and its operations are not in line with the recommended regulations. Procurement in the sector is marred by many challenges, such as the fact that no new contracts have been concluded since 2001.

Objectives: This article investigates the perceptions of key stakeholders on the application of the procurement practices within the commuter bus industry in Gauteng to improve the industry’s performance.

Method: This article is descriptive and exploratory in nature and employed a mixed-method research approach. The data were collected from a sample of 18 respondents who are key stakeholders directly involved in the procurement of subsidised commuter bus services in Gauteng by means of a face-to-face interview using a semi-structured questionnaire.

Results: The findings of the article revealed that there are three procurement practices employed within the commuter bus industry, namely, interim, negotiated and tender contracts and all these are long overdue.

Conclusion: The findings of the article recommend that the key stakeholders need to select the most suitable procurement practice(s) to be employed within the industry and it highlights the challenges stemming from the lack of proper implementation of the guiding policies.