When the African National Congress (ANC) took office in 1994 it introduced various policies that would govern budgetary and financial reforms in South Africa. The main objective was to modernize the management of the public sector. Even though government Departments have started implementing the Supply Chain Management strategies, there are still some challenges and deficiencies that hinder appropriate implementation. The key research objectives of the study is to investigate and evaluate the implementation of Supply Chain Management in service delivery with specific focus in procurement processes of goods and services in the Eastern Cape Department of Local Government and Traditional Affairs This study has demonstrated perceptions in the implementation of Supply Chain Management (SCM) within the Department of Local Government and Traditional Affairs in the Eastern Cape Province, South Africa. The overwhelming majority of participants have shown dissatisfaction with the implementation of SCM. Service providers argue that there is no opportunity for them to develop as Small, Micro and Medium Enterprises (SMMEs) and only those service providers who are fully developed benefit from SCM. The study intends to establish and highlight the challenges that the Eastern Cape Department of Local Government and Traditional Affairs is presently faced with in regard to implementation procurement processes among staff members, managers and service providers This study is mainly qualitative but also exposes the reader to the quantitative research method

The underlying objective of this research was to assess the extent to which an efficient supply chain can help retail businesses; particularly liquor businesses to manage their business risks. The case study firm for the research was Big Daddy’s Group, one of the leading independent liquor distribution and retailing firms in South Africa. In order to achieve the objective of the research, a review of relevant literature was done. It began with literature review of retailing in general, highlighting on the major roles they play and the modern trends in the industry. Afterwards the literature was narrowed down to liquor retailing. This was done to ascertain the unique characteristics of that aspect of retailing including the regulations guiding the industry and the specific business risks in that business. The final part of the literature review was on specific concepts and management models such as value chain, supply chain as well as business risk and its management. The literature highlighted the means by which the retailer creates value for the customer and the inherent risks in the industry. There was the indication of supply chain being a key component of the value creating activities (value chain) of the business, and serving as a tool in mitigating possible risks. The literature provided the theoretical proposition (hypothesis) for the assessment of the case study findings from the Big Daddy’s Group. The data collection exercise was done by means of a questionnaire complimented by personal interview. Due to the nature of the firm, in terms of structure and operations, two persons, with considerable insight into the business, the director and the sales/area manager were interviewed for the exercise. The questions posed were categorised into seven key areas of retail operations such as product range, imports, customer awareness, marketing and advertising, supply chain and human resource. The findings were compared with the theoretical propositions developed in the literature review, and the pattern matching logic technique was used to determine the existence or not of any similar predictions or differences. The risks identified in the findings were analysed with the logic of an efficient supply chain as the mitigating tool. The conclusion was that supply chain management is key to the value creation activities and hence the survival of the business. The recommendation therefore is that the retailer should ensure the efficient management of the supply chain network since it has the potential to reduce the inherent risks in their operations.

Dissertation (PhD (For))--University of Stellenbosch, 2001. / ENGLISH ABSTRACT: The objective of this study is to develop a new method which can be used to forecast the Forest Engineering value chain. The method is then applied in the South African context in order to validate the use thereof. Finally, the South African results are used to propose strategies, which the industry should pursue in the future. To forecast the future an understanding of the past is required. To this end, the historical development of Forest Engineering is discussed, both globally and in South Africa. The current status quo in Forest Engineering in South Africa was determined through a national survey of plantations larger than 200 ha. The results are reflected in Chapter 2. Because of the importance of globalisation and technology, Chapter 3 gives a literature review of relevance of technology in today's business world, including various forecasting techniques that are relevant to the study. These techniques are a combination of traditional forecasting methods, technology forecasting methods and strategic planning methods. Various approaches to financial analysis have also been discussed, in order to determine the soundest method of comparing various forest engineering systems with each other. This includes an overview of traditional machine cost calculations. The core of the study lies in the combination of these methodologies into a useful method, which is particularly suited to forecasting the Forest Engineering value chain. Such a method is developed in Chapter 4, based on the literature review of forecasting methodologies. The method is then validated in Chapter 5, through the application thereof in the South African forestry industry. Global trends are established with the use of a Delphi study. This technique uses a panel of experts who give their views on future developments on a multiple round basis. The study then evaluates 14 Forest Engineering systems for pine sawtimber, pine pulpwood and Eucalyptus pulpwood, based on various scenarios of the future. The scenario matrix is based on the future cost of labour vs. the future cost of machinery. Finally, a strategy is proposed on how the South African forestry industry should prepare itself for the future. / AFRIKAANSE OPSOMMING: Die doelwit van die studie is om 'n nuwe metode te ontwikkel waarmee 'n vooruitskatting van die Bosingenieurswese waardeketting gemaak kan word. Die metode word dan in die Suid-Afrikaanse konteks toegepas om die geldigheid daarvan te beproef. Die Suid-Afrikaanse resultate word voorts gebruik om 'n nasionale Bosingenieurswese strategie voor te stel vir die bedryf. Dit is nodig om die verlede te verstaan, voor die toekoms vooruitgeskat kan word. Om dié rede is die historiese ontwikkeling van bosingenieurswese bespreek, in beide 'n internasionale, sowel as 'n Suid Afrikaanse konteks. Die huidige status quo van Bosingenieurswese in Suid Afrika is vasgestel deur 'n nasionale opname waarby plantasies van groter as 200 ha ingesluit is. Die resultate van die opname word weergegee in Hoofstuk 2. As gevolg van die belangrikheid van beide globalisering en tegnologie, is 'n literatuur studie ingesluit in Hoofstuk 3 oor die relevansie van tegnologie in die besigheidswêreld van vandag, asook en 'n bespreking van verskeie vooruitskattingstegnieke wat in die studie gebruik kan word. Hierdie vooruitskattinge is 'n kombinasie van tradisionele vooruitskattings tegnieke, tegnologie vooruitskattingstegnieke en tegnieke wat gebruik word vir strategiese beplanning. Verskeie benaderinge tot finansiële analise is ook bespreek. Dit sluit tradisionele masjienkoste berekening in. Die rede hiervoor is om vas te stel watter metode die mees geskikte sou wees om verskeie Bosingenieurswese sisteme met mekaar te vergelyk. Die kern van die studie lê in die kombinasie van hierdie metodes om 'n bruikbare metode te ontwerp om die Bosingenieurswese waardeketting vooruit te skat. Hierdie ontwerp word in Hoofstuk 4 bespreek. Die metode word in Hoofstuk 5 beproef, deur die toepassing daarvan op die Suid Afrikaanse bosbedryf. Internasionale bosingenieurswese tendense is vasgestel deur middel van 'n Delphi studie. Hierdie vooruitskatting maak gebruik van 'n paneel van kundiges wat hulle siening oor die toekoms uitspreek deur verskeie rondtes van vrae wat aan hulle gestel word. Die studie evalueer hierna 14 Bosingenieurswese sisteme vir denne saaghout, denne pulphout en Eucalyptus pulphout, gebaseer op 'n scenario-analise van die toekoms. Die scenario matriks is gefundeer op die toekomstige koste van arbeid teenoor die toekomstige koste van masjinerie. As 'n finale stap word voorgestel hoe die Suid Afrikaanse bosbedryf kan voorberei om die toekoms tegemoet te gaan.

Most contemporary South African businesses are facing tough times. This is the result of emerging trends such as intense global competition which requires businesses to be quick, agile and flexible; new technology available to any business willing to adopt it; more advanced customer expectations and the implementation of new strategic, proactive management approaches. In fact, many of them (including wholesalers) will succeed only if they can successfully integrate strategy, processes, business arrangement, resources, systems and empowered workforces to render their core business effectively. Choosing suppliers and purchasing products are critical wholesaling activities and often determine the success of wholesalers. Wholesaling institutions, however, vary considerably in size, activity, style of business, types of products provided and services rendered. These variables imply that the complexity of wholesaling activities differs. It therefore stands to reason that the level of sophistication with which these wholesalers manage their purchasing, sourcing and supply activities may differ. The level of sophistication with which wholesalers manage their purchasing, sourcing and supply function may vary from traditional management approaches to advanced integrated management approaches. The use of the new management approaches by businesses is a vital instrument in facilitating change. This leads to the development of more focused, specialised and high-performance organisations. Manufacturers are not geared to deal directly with the thousands of small retailers and therefore use wholesalers for this function. Wholesalers provide a vital link between manufacturers and retailers, and play a pivotal role in efficiency of the whole supply chain. Adapting to the supply chain management approach may thus mean the difference between success, failure and the continued existence of the wholesaler in supply chains. This research study was undertaken to determine to what extent wholesalers in South Africa have adapted to new demands and developments in their purchasing, sourcing and supply functions. Secondary to this objective was the need to (1) investigate the scope of wholesaling, with reference to the global and South African context; (2) investigate the concepts of and the evolution of purchasing to strategic sourcing as part of the broader supply chain management approach; (3) analyse the scope and concept of supply chain management; and (4) determine the purchasing, sourcing and supply management approaches used by the wholesale sector in South Africa. The study was conducted in several phases. Firstly, a literature research was conducted to gather and integrate secondary data in order to (1) expound the definitions, importance, types, activities and trends of wholesalers; and (2) investigate the development of purchasing to strategic sourcing and evolution of supply chain management, and to give an overview of purchasing, strategic sourcing and supply chain management. Secondly, a questionnaire was compiled containing all the relevant issues identified in the literature research to enable the researcher to establish how far South African wholesalers have advanced in adopting new approaches to managing the purchasing, sourcing and supply function. This questionnaire was pretested on two respondents to verify its validity, before proceeding to the next step. Thirdly, a letter and the refined and tested questionnaire were mailed to all the wholesalers identified to be involved in the survey, informing them of the research study and soliciting their cooperation. The letter requested the participants to return the questionnaire via facsimile. Fourthly, to improve the response rate, after the date for returning the questionnaire had lapsed, additional questionnaires were faxed to all the respondents who had not completed the initial questionnaire. The literature research established that the new demands and developments facing wholesalers in managing their purchasing, sourcing and supply function are a reality. Wholesalers are confronted with a variety of challenges concerning these demands and developments which is jeopardising their vital role in the supply chain, and they need to adopt a more sophisticated method of managing these activities, not only to ensure their own survival, but also to lower the costs of the wholesale operation, and ultimately allow an increase in shareholders' wealth. The empirical study, however, clearly indicated that South African wholesalers are still significantly focused on the tactical aspects of purchasing, incorporating only a few aspects of strategic sourcing and supply chain management. The position of South African wholesalers regarding the level of sophistication in their management approach to the purchasing, sourcing and supply chain management approach can be regarded as a mechanical approach, with proactive tendencies. It is therefore clear that South African wholesalers have not adapted to the strategic sourcing and supply chain management approaches, and need to prepare themselves for this change - or risk failure. / Business Management / M. Comm.

Thesis (MComm)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: There are numerous supply chain planning processes and activities that need to take place to ensure efficiency and effectiveness in a company. For the case study retailer, these planning processes and activities contribute to the end goals and objectives of the company. In order to reach these goals and objectives, the importance and contribution of each of the planning processes and activities must be determined. Supply chain planning can provide a company with a competitive advantage, but it can also lead to catastrophic events when it is not fully utilised or poorly executed. A case study was done on a South African sports retailer to determine to what extent the different supply chain planning processes and activities contribute to the end goals and objectives of this retailer and how these goals and objectives are tracked within the company. The implementation of planning processes and -activities were also investigated and what the consequences may be when the planning processes and activities are poorly executed. Goals and objectives which were given to the retailer‟s planners were investigated and thoroughly studied. Some of these goals included achieving effective stock policies, managing gross sales margins for products and accurate forecasting. A hybrid research method was used to gather both qualitative and quantitative data. Interviews were conducted with planners in the company to explore their current planning methods as well as to highlight the shortcomings thereof. A job satisfaction questionnaire determined the motivators and hygiene factors (where hygiene factors refer to factors such as the employee‟s relationships with their supervisor, salaries and working conditions) of the employees in the company. A low level of motivators and hygiene factors may contribute to employee‟s responses at the workplace: exit, voice, loyalty and neglect. The importance of supply chain planning in the sports retail industry and the shortcomings this retailer has on supply chain planning methods were determined and the crucial role planning plays in this retailer was effectively determined and comprehended. Areas for improvement include, realistic budgeting and planning, enhanced forecasting methods and investing in employee training. Results also show that the retailer is managing effective levels of planning to reach the goals and objectives of the company. However, there are key areas for improvement where focus should be placed upon. / AFRIKAANSE OPSOMMING: Daar is talle beplanningsprosesse en beplanningsaktiwiteite wat moet plaasvind om die effektiwiteit en doeltreffendheid van n maatskappy te verseker. Vir die kleinhandelaar in die gevallestudie dra hierdie beplanningsaktiwiteite, en -prosesse by tot die doelwitte en doelstellings van die maatskappy. Om hierdie doelwitte en doelstellings te kan bereik, moet die belangrikheid en bydrae van die beplanningsprosesse en beplanningsaktiwiteite bepaal en ten volle begryp word. Voorsieningskettingbeplanning kan aan „n maatskappy „n mededingende voordeel verskaf, maar kan ook lei tot katastrofiese gebeure indien die voosieningskettingbeplanning swak uitgevoer word of nie ten volle aangewend word nie. „n Gevallestudie is gedoen op „n Suid-Afrikaanse kleinhandelaar in sporttoerusting om te bepaal watter tipe beplanningsprosesse en beplanningsaktiwiteite plaasvind in hierdie landswye kleinhandelaar. Die implementering van die beplanningsprosesse en beplanningsaktiwiteite is ook ondersoek en wat die nagevolge kan wees wanneer hierdie beplanningsprosesse en beplanningsaktiwiteite swak uitgevoer word. Doelwitte en doelstellings wat aan die beplanners van die besigheid deurgegee word, is deeglik bestudeer. Sommige van hierdie doelwitte sluit in die bereiking van effektiewe voorraadbeleide, handhawing van bruto verkope marges vir produkte en akkurate vooruitskattings. „n Hibriede navorsingsmetode is gebruik vir die insameling van kwalitatiewe en kwantitatiewe data. Onderhoude is met die beplanners van die maatskappy gevoer om die huidige beplanningsmetodes te verken en om die tekortkomings in die beplanningsmetodes uit te wys. „n Werkstevredenheid vraelys het die motiveerders en higiëne faktore (waar higiëne faktore verwys na werknemers se verhouding met die toesighouer, salarisse en werksomstandighede) van die werknemers bepaal. Lae vlakke van motiveerders en higiëne faktore kan lei tot die volgende reaksies: ontrekking, stem, lojaliteit en verwaarlosing. Die kritieke belangrikheid wat beplanningsprosesse en beplanningsaktiwiteite behels vir hierdie kleinhandelaar was vasgestel, asook die tekortkominge wat hierdie kleinhandelaar met voorsieningskettingbeplanningsmetodes het. Verbeteringsareas sluit in, realistiese beplanning en „n realistiese begroting, verbeterde vooruitskattingsmetodes en om in die werknemer se opleiding te investeer. Dit is bepaal dat hierdie kleinhandelaar handaaf effektiewe vlakke van beplanning om einddoelstellings en einddoelwitte te bereik. Daar is egter, sekere areas, waar fokus op geplaas moet word. Sleutelwoorde: Voorsieningskettingbeplanning, beplanningsprosesse, beplanningsaktiwiteite.

M. Tech. Business Information Systems / Enterprise Application Integration (EAI) is an integration framework that encapsulates a set of services and technologies that forms a middle tier to enable integration of varied systems and applications across the enterprise. It is a mechanism to combine processes, software, standards, and hardware to seamlessly integrate two or more enterprise application systems allowing them to operate as a unit. There are various challenges with EAI in terms of the approach, the architecture, implementation and its operation in a business environment. Even more so in a Third-party logistics (3PL) environment, where its function is directly associated with the performance of the business. Third Party Logistic is a supply chain service provider that carries out supply chain activities on behalf of a client, also known as a shipper, for part, or all of their supply chain management. However, regardless of the value put on the 3PL, IT capabilities shippers are still not satisfied with the performance, and there are no specific guidelines for EAI usage in 3PL environment. The goal of this study was to design an Enterprise Application Integration framework for Third-Party logistics.

Thesis (MScAgric)--Stellenbosch University, 2004. / ENGLISH ABSTRACT: The agro-food sector is swiftly moving towards an internationally interconnected system with a large variety of complex relationships, due to year-round supply, product differentiation and developments in information technologies, with the aim of enhancing competitiveness. In this context, vertical linking in the agro-food business especially, vertical coordination has gained attention. A case study approach is used to analyse two fruit supply chains -the table grape and citrus fruit chain. The study uses a transaction cost approach to analyse the supply chain of the fruit industry in South Africa. Transaction cost analysis (TCA) represents one possible approach to understanding and evaluating supply chain management and has the potential to be combined in an interdisciplinary setting with the insights provided by the marketing, logistics and organisational behaviour literatures. By means of literature study, constructs are identified that help explain the choices made, with regard to governance structures and the sources of competitiveness of supply chains. The question of governance structures is addressed in transaction cost economics (TCE) where asset specificity is of major importance. The sources of competitiveness are addressed both in the literature study and from discussions undertaken with key industry representatives. The empirical application of the TCE theory helped demonstrate the extent to which the exporter has adapted to changes in the global environment. The study revealed that for both supply chains, the role-players overcompensate to minimise their risk. Hence vertical integration rather than outsourcing takes precedence. Bilateral contracting and strategic alliances should be given priority to enhance effective communication, commitment and collective decision-making. This growing recognition of the competitive advantage that can be gained through improving coordination in the supply chain is the starting point for SCM initiatives and, these are important signals that in the long run will determine the sustainability and competitiveness of the industry. / AFRIKAANSE OPSOMMING: Die landbou-voedsel sektor is vinnig besig om na 'n internasionale interafhanklike stelsel met 'n groat verskeidenheid van ingewikkelde verhoudings te beweeg, as gevolg van heel-jaar aanbod, produk differensiasie en ontwikkeling in tegnologie, met die doel om meer mededingend te wees. In hierdie konteks geniet vertikale skakelinge in die landbou-voedsel bedryf, en veral vertikale koordinasie, baie aandag. 'n Gevalle studie benadering is gevolg om twee vrugte waardekettings te analiseer -die tafeldruiwe en sitrus ketting. Die studie maak gebruik van 'n transaksie koste benadering om die waardeketting van die Suid-Afrikaanse vrugte bedryf te analiseer. Transaksie koste analiese (TKA) verteenwoordig een moontlike benadering om waardekettingbestuur te verstaan en te evalueer. Dit het oak die potensiaal om gekombineer te word in 'n interdissiplinere omgewing met insigte wat deur bemarking, logistiek en organisatoriese gedrags literatuur verskaf word. Konstruksies is met behulp van literatuur studies ge"identifiseer wat help om die keuses wat gemaak is met betrekking tot bestuurstrukture en die bran van mededingendheid van waardekettings. Die kwessie van bestuurstrukture word aangespreek deur transaksie koste ekonomie (TKE) waarin bate-spesifiekheid van groat belang is. Die bran van mededingendheid is aangespreek deur beide literatuur te bestudeer en deur besprekings met sleutel-figure in die bedryf. Die empiriese toepassing van die TKE teorie help om die mate waarin die uitvoerder aangepas het tot veranderinge in die globale omgewing aan te toon. Die studie bewys dat firmas in beide waardekettings oorkompenseer vir transaksie koste deur vertikale integrasie in plaas van kontrakte. Bilaterale kontrakterings en strategiese vennootskappe moet prioriteit geniet om effektiewe kommunikasie, verpligtinge en kollektiewe besluitneming te verbeter. Die groeiende erkenning wat gegee word aan mededingende voordeel wat gewen kan word deur koordinasie in die waardeketting te verbeter is die begin punt vir ketting initiatiewe en, dit is belangrike seine wat die volhoubaarheid en mededingendheid van die bedryf in die lang termyn sal bepaal.

Thesis (MPA (School of Public Management and Planning))--University of Stellenbosch, 2006. / The National Treasury of South Africa has recognised supply-chain management (SCM) as forming one of the key financial management reform focus areas. The SCM Regulations issued by the National Treasury are so new to local government that their particular relevance to the different municipalities is, as yet, unknown. The implications of the Regulations are being phased in over a 12-month period, giving municipalities the opportunity to draft, adopt, and implement their SCM policies. No guide or model therefore yet exists that can be adapted to suit Matatiele Municipality in its quest to implement all the components of SCM in order to improve service delivery.

Thesis (MPA)--Stellenbosch University, 2014. / ENGLISH ABSTRACT: This study was conducted to assess transparency in Supply Chain Management (SCM) at local government. The case study of eThekwini Municipality as an institution at the local sphere of government was used to explore the objectives of the study. Fundamentally, institutions such as municipalities and municipal entities, by virtue of being the closest to the people, play an important role of rendering basic services that are aimed at improving living standards of local communities. Therefore, purchasing of goods and/ or services through SCM should strictly comply with specific legislation, policies and regulations which are implemented to achieve standard norms and principles in execution of these duties. One of these requirements is achieved by adhering to transparency in procurement processes. Ultimately, adherence to the principle of transparency in SCM results to openness in decision-making and integrity of the entire process. In this study, these considerations were explored at eThekwini Municipality’s SCM and qualitative analysis of secondary data against SCM legislation, policies and regulations were extensively investigated to establish the extent to which the SCM processes had adhered to transparency. The findings of the analysis as primarily guided by the Auditor-General’s (AG’s) audit outcomes since the launch of “Operation Clean Audit” established that the municipality had not received a clean audit during the period of review from the 2009/2010 to 2011/2012 financial years. The findings pointed to a number of issues regarding SCM irregularities, exceptionally high irregular expenditure (with a net regression of 12% in the financial year 2010/2011), abuse of contract deviations, failure of the accounting officer to give reasons in writing for irregular expenditure and non-compliance with applicable laws and regulations. This state of affairs had led to the municipality making a prognosis of the internal issues which placed them at risk. These issues informed the development of a strategy to implement austerity systemic and financial management measures to mitigate the identified risks. The findings of the study concluded that the importance of adherence to transparency results in sound decision-making, promotes access to information to the public and other stakeholders, increases integrity of processes, and prevents opportunities of fraud and maladministration. / AFRIKAANSE OPSOMMING: Hierdie studie is uitgevoer om deursigtigheid te evalueer in Voorsieningskettingbestuur op plaaslike regering. Die gevallestudie van eThekwini Munisipaliteit as 'n instelling op die plaaslike vlak van regering is gebruik om die doelwitte van die studie te verken. Fundamenteel speel instansies soos munisipaliteite en munisipale entiteite ‘n belangrike rol in die lewering van basiese dienste wat gemik is op die verbetering van lewensstandaarde van plaaslike gemeenskappe, omdat hulle die naaste aan die mense is. Daarom moet die aankoop van goedere en / of dienste deur Voorsieningskettingbestuur streng voldoen aan spesifieke wetgewing, beleid en regulasies wat geïmplementeer is om standaard norme en beginsels in die uitvoering van hierdie pligte te bereik. Een van die vereistes kan aan voldoen word deur deursigtigheid in die verkryging prosesse. Uiteindelik sal die nakoming van die beginsel van deursigtigheid in Voorsieningskettingbestuurdie openheid in besluitneming en integriteit van die hele proses tot gevolg hê. In hierdie studie, was die oorwegings ondersoek by die eThekwini Munisipaliteit se Voorsieningskettingbestuur en ‘n kwalitatiewe analise van sekondêre data teen Voorsieningskettingbestuur wetgewing, beleid en regulasies was intens ondersoek om die mate waarin die Voorsieningskettingbestuur prosesse voldoen het aan deursigtigheid, te bepaal. Die bevindinge van die analise was hoofsaaklik gelei deur die Ouditeur-Generaal se oudituitkomste sedert die bekendstelling van "Operasie Skoon Oudit ", en dit het gewys dat die munisipaliteit nie 'n skoon oudit gehad het gedurende die tydperk van die hersiening van die 2009/2010 tot 2011/2012 finansiële jaar nie. Die bevindinge het gewys op 'n aantal kwessies rakende Voorsieningskettingbestuur ongerymdhede, buitengewoon hoë onreëlmatige uitgawes (met 'n netto agteruitgang van 12 % in die finansiële jaar 2010/2011), die misbruik van kontrak afwykings, nalating van die rekenpligtige beampte om redes te gee vir die afskryf van onreëlmatige uitgawes en nie- nakoming van die toepaslike wette en regulasies. Hierdie toedrag van sake het daartoe gelei dat die munisipaliteit 'n prognose gemaak het van die interne kwessies wat vir hulle ‘n risiko was. Hierdie kwessies het gelei tot die ontwikkeling van 'n strategie om sistemiese en finansiële bestuur maatreëls in te stel om die geïdentifiseerde risiko's te verminder. Die bevindings van die studie dui daarop dat die nakoming van deursigtigheid lei tot gesonde besluitneming, bevordering van toegang tot inligting aan die publiek en ander belanghebbendes, en dat dit die integriteit van prosesse verhoog, en geleenthede vir bedrog en wanadministrasie voorkom.

Thesis (MBA)--University of Stellenbosch, 2010. / The value-add of a functional department in the corporate environment is continuously being challenged. Functions regularly find themselves in a state of restructuring in order to reduce cost structures which speaks volumes about an organisation’s view of its functions. What is however extremely important to take into account, is that functions can in fact add a great deal of value to the business, but before a function can be recognised as a value-adding partner, it needs to transform itself from a traditional transaction-driven service to a strategic value-adding function which contributes to the business on a strategic level. If this does not happen, the function risks becoming redundant, as most transactional activities today are or at least can be executed in an automated manner. Such a transformation is, however, no easy task, and requires a considerable amount of time to be achieved. It further requires substantial investments, enduring commitment from senior management and specific skills to enable a function to operate at a strategic level. Commitment, investments and new skills on the other hand, do not automatically acquire a seat at the boardroom table for such a function and a place must be earned through accurate proof of the functions value-add in the organisation – the difficult task being expressing that value-add in terms of financial numbers. A function that was confronted with the same predicament was the procurement function of Sasol around 1999, during a time when the commodity prices were under severe pressure and the organisation was looking into alternative ways of improving its cost structure. At this point a decision, to shift the focus of the procurement department from a traditional transactional environment to a value-adding business partner, laid the foundation to re-engineer the function into becoming a value-adding strategic function. A decision was taken to implement strategic sourcing in Sasol as the basis for procurement. This decision required substantial investment and the help of consulting firm McKinsey and Company. The Sasol Board were very confident in its decision, and requested continuous feedback on the actual value that was released through implementation of this new process. This required of the procurement function to develop a model by which the value-add of the process could be measured in real terms. The purpose of this study is to investigate the transformation of the procurement function in Sasol from a traditional transactional function to a strategic value-adding business partner by specifically focusing on the function’s ability to prove its value-add to the organisation, and in so doing, gain respect for being a true strategic value-adding function.