Supply chain management challenges on construction projects in South Africa

Abstract

This study is aimed at investigating public sector clients’ performance in the South African construction projects with a view to establishing the supply chain management (SCM) challenges during procurement processes. A qualitative and quantitative mixed method research design was adopted in carrying out the study. This involved the use of interviews, structured and open-ended questionnaires. Data were collected from South African National and Provincial Departments of Public Works as public sector client representatives. The purposive sampling technique was adopted for the study. Data collected were analysed using content analysis to determine the themes and constructs leading to the identification of public sector clients’ key performance indicators. Further analysis was carried out using mean ranking analysis of factors associated with the strengths and weaknesses associated with public sector clients’ performance. Results show insufficient SCM cadres, procurement challenges, long SCM processes, contractual inequality, and lack of internal control measures in Public Finance Management Act (PFMA). Others are; lack of skilled service providers, undefined service providers’ roles, unclear project specification and weak procurement strategies. Implementable recommendations were made to specific user departments. The SCM units in the South African National and Provincial Departments of Public Works should adopt the recommendation suggested in this study.

Keywords: Challenges, Client, Construction Procurement, South Africa, Supply Chain Management