Supply Chain Management Zingi Ntsaluba 13 March 2006

2 DURING THE 2005/06 FINANCIAL YEAR THE FOLLOWING INITIATIVES WERE IMPLEMENTED TO IMPROVE THE EFFICIENCY OF PROCUREMENT  Implementation of Supply Chain Management:  Establishment of the Bid Specification, Bid Evaluation and Bid Adjudication Committees throughout the department.  Development and implementation of new Procurement Policy, Directives and Standard Operating Procedures.  Training of Supply Chain Management Practitioners and line function personnel in the new procurement dispensation.  Procurement contracts are concluded and awarded within the department which has improved the turn around time in procurement decision making.

3 IN 2006/07 FINANCIAL YEAR THE DEPARTMENT WILL FOCUS ON  Further implementation of Supply Chain management to look at improving demand management, Disposal Management, Risk Management, Logistics Management and SCM performance management.  Improving procurement capacity in order to create multi disciplinary procurement teams who will deal with all DPW procurement.  Implementation of a procurement computer system which will improve our record keeping, procurement reporting, turn around time in evaluations and control in quotation procurement.  Revise the policies and procedures within Provisioning and Administration The department will continue to ensure that it does not do business with unscrupulous enterprises who are listed in the register of tender defaulters kept by the National Treasury. Procurement methods (e.g. Evaluations) will be continously improved to deal with corruption and remove barriers to entry.