Supply chain performance and preferential procurement in Gauteng government departments

Abstract

Background: In the previous two decades, preferential procurement and supply chain performance have gained popularity within academics following the introduction of the Preferential Procurement Policy Framework Act No 05 of 2000 (PPPFA) which was aimed at providing opportunities in government supply chain contracts to previously disadvantaged groups. Despite PPPFA being a corrective measure, research has brought to light the abuse and manipulation in the implementation of this Act by government officials trusted with this function. The study aims to determine how supply chain performance is affected by preferential procurement within selected Gauteng government departments.

Objectives: The objectives of the study were twofold: First to determine how supply chain performance is influenced by preferential procurement and the effect of management levels on the implementation of PPPFA, and secondly to determine the effect of the implementation of preferential procurement on supply chain performance within selected government departments.

Method: Through a quantitative research approach, data were collected using close-ended questionnaires in the form of a five-point Likert scale and a stratified random sampling technique. The Statistical Package for the Social Sciences (SPSS) software was used to analyse data through descriptive and inferential statistics.

Results and conclusion: The study revealed that preferential procurement had an impact on supply chain performance in the selected departments which could be pinned mainly to the gap between policies and implementation. Although preferential procurement was generally applied across the departments, it was noted that some officials within supply chain management had not fully understood the implementation requirements of the PPPFA.