Question

Discuss the advantages and limitations of the procurement process and its effect on small business development in South Africa.

In your response, focus in particular on these areas of interest:

• Procedures;

• Tendering in South Africa;

• Challenges affecting the procurement process; and

• Sustainability and good corporate governance.

No plagiarism please

Answer 1

Advantages:

• Improved Spend Visibility and Lower Costs. ...
• Global Procurement. ...
• Better Operational Performance. ...
• Standardized Workflow. ...
• Simplified Processes. ...
• Improved Data Accuracy. ...
• Internal Integration. ...
• Electronic Catalogs.   

Limitations:

• Over reliance on technology and the disabling of due diligence. This often leads to devastating shortages, delays, and supply chain disruptions.
• Lack of buy in and resistance to change from employees. ...
• Increased Complexity. ...
• Poor Integration with existing systems. ...
• Cost, Cost, Cost.   

Effect in south Africa:

To institute procurement best practices, a supply chain management system was adopted in South Africa in 2003. The procurement process was granted constitutional status and has been used to address past inequitable policies and practices. It promotes aims which are, arguably, secondary to the primary aim of procurement. For the exploration, a conceptual analytical approach was employed and some of the key guiding pillars of public procurement in South Africa divulged. The challenges restraining effective and efficient implementation of public procurement are also revealed. The article concludes by recommending the development of competency through customised (separate) training materials and programmes, the involvement of stakeholders in the bidding process and the employment of good strategic sourcing practices.