Hendswell Baloyi, Elizabeth Chinomona
Abstract
Procurement is a big business practice, and the government remains the most significant entity that makes the acquisition and disposal of goods/services on a larger scale in most countries, which attracts countless players and stakeholders. However, South African municipalities face many supply chain challenges ranging from ineffective procurement, a lack of staff training, a lack of capacity, transparency and mismanagement of resources, to mention a few. To minimise these challenges, municipalities must understand critical success factors in implementing effective procurement strategies, processes and systems, whilst avoiding the barriers affecting the functioning of procurement processes. This study followed a correlational quantitative design. The target population comprised procurement personnel in managerial positions from Sedibeng District Municipality and its three local municipalities (Emfuleni, Midvaal and Lesedi), both male and female from all racial groups in South Africa were targeted. A probability simple random sampling technique was employed to identify 148 respondents fitting the predetermined sample criteria. Relevant areas, research methods and data-acquiring procedures were described. The Partial Least Squares-based Structural Equation Model (Smart PLS) was used to analyse the dataset. The relationships were statistically significant, explained 72 per cent of the variance in procurement effectiveness. By diligently addressing the barriers, municipalities can improve their supply chain processes, thereby enhancing procurement effectiveness. Municipalities should allocate and devote their resources towards procurement planning, resource allocation and staff competency to stimulate and strengthen supply chain effectiveness. Based on these findings, limitations were outlined together with the conclusions and recommendations for future avenues.