An evaluation of the implementation of sStrategic sourcing in the Western Cape Government

[摘要] ENGLISH SUMMARY : The current weak economic environment has warranted that government reassess its spending behaviour as there is less revenue to cover all of the policy primacies. Strategic sourcing, as a procurement methodology, can guarantee savings of between 3-5% per annum whilst public sector projects have averaged savings of as much as 28%. Strategic sourcing is described as the process of crafting and organising networks of supply in line with the strategic and operational objectives of the organisation whereas the public sector has adopted the definition that refers to 'a collaborative and structured process of critically analysing an organisation's spending and using this information to make business decisions about acquiring commodities more efficiently and effectively. Whilst, it has been extensively applied in the private sector, limited application of strategic sourcing has been seen in the public sector.The research was therefore intended to augment the literature by evaluating how strategic sourcing was implemented by the Provincial Treasury in the Western Cape Government (WCG). The research design comprised a literature review and a qualitative case study. The Delphi Group methodology was used given its ability to provide informed consensus from expert panellists. The first round of the Delphi study consisted of an online, Likert-type scale questionnaire denoted of themes of key success factors for strategic sourcing whilst the second round comprised a brainstorming workshop with the Provincial Treasury strategic sourcing team and the strategic sourcing management consultants.The study revealed that whilst strategic sourcing formed part of the objectives of the Provincial Treasury, there was no Top Management involvement in the execution of strategic sourcing and no Chief Procurement Officer to champion strategic sourcing in the Western Cape Government. It was also found that no structural reorganisation occurred with the implementation of strategic sourcing in view of the fact that the function had to be performed in addition to other existing roles and responsibilities. The predominant compliancy focus of the directorate, responsible for strategic sourcing, was also found to be counter-intuitive to the innovative, business-oriented role that is sought by strategic sourcing. From a governance perspective, gaps included a lack of an organisation-wide steering committee to oversee the implementation of strategic sourcing, lack of a benefits-tracking mechanism and the need for increased supplier involvement in the execution of strategic sourcing. The implementation of strategic sourcing did however succeed in orienting the WCG to procurement spend analysis, created an awareness of strategic sourcing and increased the uptake of business intelligence and technology.The key recommendations from the research included that provincial departments, as opposed to the Provincial Treasury, spearhead the implementation of strategic sourcing. That the Provincial Treasury appoint a Chief Procurement Officer to champion provincial strategic sourcing strategies and efficiency goals in line with cost containment targets. That a WCG cross-functional steering committee be established to oversee the development and implementation of strategic sourcing. That a Directorate for strategic sourcing be established as the compliancy focus of the currentdirectorate would continue to detract from the priority that the strategic sourcing function should achieve in view of the drive by the National Treasury to reduce government expenditure. It is concluded that given the intricacies of government and how the gaps in the Provincial Treasury's implementation mirrored those found in the United States Federal Strategic Sourcing Initiative (FSSI), there is a need for future research to be undertaken to develop a bespoke model for the implementation of strategic sourcing in a public sector environment.

[发布机构] Stellenbosch University